US Export Growth Supported by Production/Inventory
This current feature was extracted from the latest edition of Poten’s LPG Market Outlook, a monthly service published on April 19th, 2023.
US LPG production is forecast to climb by 5% to 91.7 MMt in 2023 as natural gas production continues to be robust despite declining natural gas prices. LPG production is forecast to rise by another 5% in 2024 to 96 MMt as production and takeaway capacity, particularly in the Permian Basin, continues to expand. Roughly 50% of US natural gas production is associated with oil production and oil production is not expected to decline.
In January 2023, LPG output rose by 8% to 7.4 MMt compared to 6.9 MMt in December 2022 after a winter storm in Texas slowed down production. Growth from the Permian Basin in Texas is the most critical region in the country to the forecast. Permian Basin LPG production is forecast to climb from 1.34 MMb/d in January 2023 to 1.47 MMb/d by December.
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