The U.S. Energy Information Administration said U.S. propane exports averaged 2 million barrels per day in the first half of 2026, based on Petroleum Supply Monthly data in an October 1 analysis. That was 11% above the same period in 2025. Exports reached a monthly record of 2.1 million b/d in April. These are estimated physical flows, not oil prices, export revenue or terminal capacity.

EIA links the increase to higher U.S. propane production and changing trade flows. Greater shipments to India and other South Asian countries supported first-half growth. U.S. output has risen over the past decade as propane, a by-product of natural gas processing and crude oil refining, became more plentiful. More production expands potential supply, but each additional barrel is not automatically exported.

Rising U.S. production has made propane cheaper relative to Asia and supported export competitiveness. The fuel is used for residential and commercial heating and also serves as a petrochemical feedstock for propylene and ethylene. Demand therefore extends beyond household fuel use. EIA says April’s record also reflected petrochemical demand and buyers seeking alternatives after Middle East shipment disruptions.

Trade routes have shifted. China raised tariffs on U.S. propane in 2025 before they settled at 10%; EIA says U.S. exports to China fell 28% in 2025 and were down 19% in the first half of 2026 from a year earlier. More flows to India and South Asia show that no single buyer country determined the overall increase. Country-level flows remain sensitive to period and price conditions.

There are constraints on further growth. EIA says an Enterprise expansion at the Houston Ship Channel and Nederland terminals, expected to be completed this year, could add 300,000 b/d of capacity; that is planned capacity, not sustained realized exports. Low water at the Panama Canal also limits transits and raises effective shipping costs. Production, terminal, vessel and canal capacity must be considered together before a record export pace is treated as a durable supply assumption.