In Washington DC, The U.S. Energy Information Administration reported that in December 2023, U.S. propane exports soared to a historic peak of 1.9 million barrels per day, the highest since records began in 1973. This record-setting pace was propelled by a significant price advantage of U.S. propane over that in East Asia—the widest in a decade.
According to the report, propane, a pivotal component in producing polypropylene—a material essential in car interiors, packaging, and personal protective gear—is now more exported from the U.S. than consumed domestically.
The geopolitical landscape has also reshaped global propane flows. With Saudi Arabia cutting back on crude production, thereby reducing its propane exports, Asia has increasingly turned to the U.S. for supply. In the second half of 2023, U.S. propane exports to Asia climbed by 6%, driven mainly by a 49% surge in exports to China.
Europe’s dynamics shifted too, the report said, especially after Russia’s invasion of Ukraine led the EU to reduce its reliance on Russian propane, culminating in a ban in December 2023. This political shift resulted in a 20% increase in U.S. propane exports to Europe from the previous year.
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Tags: Propane, U.S. Energy Information Administration, Washington DC
Category: Fuels
