EIA Analyzes Steady Growth of Propane Exports in the Last 17 Years

According to the Energy Information Administration (EIA), in 2024, U.S. propane exports reached a record average of 1.8 million barrels per day (b/d). The gradually increasing export numbers since 2007 is largely credited to the increasing demand for the fuel in East Asian countries, with China being the most predominant recipient.

The U.S. has a competitive edge in pricing over Asian propane producers due to the country’s widespread production of natural gas. Propane production — a byproduct of processing natural gas processing and refining crude oil — has increased greatly with the rise of natural gas production, leading to a higher volume of the fuel and the ability for producers to sell it at lower prices.

Export terminal expansion projects in 2019 and 2023 also facilitated U.S. export growth, enabling exports to increase by more than 700,000 b/d. 

According to the EIA, “Annual U.S. propane exports grew 13% in 2024 compared with 2023, a 131,000-b/d increase, with most going to Japan, South Korea and China. Chinese consumption accounts for most of the growth in U.S. exports to Asia.”

The increase in demand for propane in China can be at least partly credited to the country’s increasing need for propylene, a propane byproduct used to manufacture polypropylene, a type of plastic used in a wide variety of Chinese products.