There’s no sugar coating it: The U.S. LPG market is oversupplied. With nationwide propane inventories sitting just below record highs, prices at Mont Belvieu are sea­sonally at some of their lowest levels since 2015. But with gas plant NGL production growth slowing and LPG export capacity slated for another round of expansions next year, an easing of domestic oversupply conditions may soon be in the offing.

Enverus (formerly Drillinginfo Inc.) an­alyzed the causes of the slowing pace of gas plant NGL production growth as well as the midstream and downstream changes that will allow for higher U.S. exports of LPG in the year ahead. Enverus believes these trends point to a more constructive outlook for the domes­tic LPG market next year.

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