US propane exports climbed to a record 2 million barrels per day in the first half of 2026, up 11 percent from the same period a year earlier, according to new EIA data.
The surge is reshaping where American propane supply goes just as the fuel heads into its biggest domestic demand season, winter heating.
Exports hit an all-time high in April
Increased U.S. propane production and changing trade flows, particularly increased exports to India and other countries in South Asia, drove propane exports to a record high of 2.1 million barrels per day in April 2026.
U.S. propane exports surpassed 2 million barrels per day that month for the first time, driven by increased demand for petrochemicals and by importers seeking supplies to replace disrupted shipments from the Middle East.
Favorable prices for U.S. propane exports also outpaced competition in other regions. EIA data shows exports have stayed elevated since that April peak, running well above typical seasonal levels through the summer.
Record domestic production is the driver
Record U.S. propane production has supported the rise in propane exports. Propane production, which is a byproduct of natural gas processing and crude oil refining, has increased rapidly over the past 10 years as U.S. natural gas output has grown.
Higher propane production has led to lower U.S. propane prices relative to Asia, underpinning the record export levels.
Infrastructure is expanding to keep pace with that export growth. An expansion project by Enterprise, expected to be completed this year at the Houston Ship Channel and Nederland terminals, will increase capacity by another 300,000 barrels per day.
Trade flows are shifting away from China
On February 1, 2025, President Trump signed an executive order imposing a 10 percent tariff on all Chinese imports, and China responded with retaliatory tariffs that escalated sharply over the following months before both sides scaled back their rates. As the trade dispute intensified, tariffs affecting Chinese goods climbed as high as 125 percent in the spring of 2025 before falling back later that year.
As a result, U.S. exports of propane to China were down 28% in 2025, compared with 2024. In the first half of 2026, U.S. propane exports to China fell by 19% compared with January to June 2025, according to the EIA.
India has picked up much of the slack. The rise in shipments to India comes amid changes in global energy trade flows, and US propane has gained market share as importers look for alternative sources of supply.
Why it matters for winter heating bills
Propane is consumed globally in the residential and commercial sectors for space heating and other uses , and it remains the primary heating fuel for millions of US households that lack access to natural gas pipelines. Those customers are billed through state-regulated delivery systems rather than the kind of utility rate cases that govern electric and gas distribution companies.
Record exports mean more domestic supply is competing for space on tankers bound overseas, a dynamic that has already drawn scrutiny from state regulators who cap propane markups, including the Railroad Commission of Texas, which sets allowable markups for propane distribution system retailers serving residential and commercial customers in the state.
The export boom also arrives as utilities nationwide pursue billions of dollars in rate increases tied to grid investment, a trend GCN has tracked in filings such as OG&E’s rate hike and a Wisconsin utility’s rate push.
Propane, unlike electricity and piped natural gas, is not subject to the same base-rate case process, leaving its price more directly exposed to swings in global export demand.
Separate EIA reporting on US propane exports has noted that further growth in US propane exports could face challenges from limited export capacity and disruptions at the Panama Canal, where drought conditions have reduced water levels, limiting the number of ships that can transit the route heading into the fall and winter shipping season, a period when domestic heating demand typically competes most directly with export commitments.
