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US propane exports to India rose in the first half of 2026, contributing to record-high overall shipments as changing global trade flows and rising demand in South Asia boosted exports, according to the US Energy Information Administration (EIA).
US propane exports averaged 2 million barrels per day (b/d) during January-June 2026, up 11 per cent from the same period last year, the EIA said. Exports reached a record 2.1 million b/d in April, partly driven by higher shipments to India and other South Asian countries. The increase in exports has been supported by record US propane production. Propane is produced as a byproduct of natural gas processing and crude oil refining. Production has risen over the past decade alongside growth in US natural gas output. Higher production has also helped keep US propane prices relatively lower than prices in Asian markets, making US supplies more competitive for overseas buyers. "Since then, total propane exports, including exports to India, have continued at levels well above the five-year average," the EIA said. The rise in shipments to India comes amid changes in global energy trade flows. US propane has gained market share as importers look for alternative sources of supply. US propane exports crossed 2 million b/d in April for the first time. The EIA attributed the increase to stronger petrochemical demand and efforts by importers to replace disrupted supplies from the Middle East. Globally, propane is used for residential and commercial purposes, including space heating. It is also used in petrochemical production to make propylene and ethylene, which are key raw materials for manufacturing plastics. Meanwhile, US propane exports to China have declined following tariffs imposed on US propane. Shipments to China fell 28 per cent in 2025 from the previous year and declined another 19 per cent in the first half of 2026 compared with the same period in 2025. The EIA said further growth in US propane exports could face challenges from limited export capacity and disruptions at the Panama Canal. Drought conditions have reduced water levels in the canal, limiting the number of ships that can transit the route and increasing the effective cost of using it. This could affect the movement of US propane to international markets. (ANI)
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