North American LPG prices hit multiyear highs amid strong domestic, export demand

North American LPG prices reached multiyear highs in late October, driven by robust domestic demand across the continent and strong exports to regions such as the Far East.

Platts, part of S&P Global Energy, assessed US Gulf Coast propane prices at $1.0925/gallon on Oct. 22. This marked one of the highest prices since September 2022, while the propane-to-crude ratio was about 46%, on par with a year ago.

The Mont Belvieu propane-to-crude ratio at Energy Transfer consolidated at 47% after rising steadily over the past month. The Enterprise propane ratio was 46%. Both ratios are now in line with 2025.

The rising Gulf Coast propane price comes as propane exports out of the US have held above 2 million barrels/day over the last four weeks, according to S&P Global Commodities at Sea shipping data.

In October, Japan was the largest importer, accounting for about 27% of all US propane loadings, with China following at 17%.

This steady export trend was part of the reason US propane and propylene inventories fell below 106 million barrels for the first time since early August during the week ended Oct. 16. Stocks tightened by 500,000 barrels to 105.846 million barrels, their lowest level since early August, according to US Energy Information Administration data released Oct. 21 for the week ended Oct. 16.

The US Gulf Coast propane price has also affected propane prices further north in Canada. Platts assessed October-delivery propane in Edmonton up 1.375 cent/gal to 96.375 cents/gal, according to Platts data. November deliveries also gained, rising 1.875 cent/gal to 96.125 cents/gal, narrowing the prompt-to-forward spread.

Stronger domestic, export butane demand

North American butane prices, meanwhile, have remained bullish, particularly since the start of the US shift to winter-grade gasoline, which was pushed forward two weeks to Sept. 1. Butane is typically used as a blendstock in higher-RVP gasoline blending.

Platts assessed butane prices at the Enterprise terminal at $1.785/gal on Oct. 22, marking one of the highest levels since March 2022. The Conway-Enterprise butane price spread, meanwhile, was over 10 cents, compared with less than a cent a year ago.

The Conway-Enterprise price disparity has shown that blenders in the New York Harbor and smaller regional markets are facing very thin margins due to high rail and truck delivery costs, S&P Global Energy CERA analysts said in their Oct. 22 US NGLs report.

That's been part of the reason butane demand in Canada is currently up for use in the butane-tight US Midwest region, as reflected in Western Canadian prices.

Edmonton field-grade butane held firm relative to crude, remaining at 72.50% of the October WTI CMA for prompt deliveries, while November was also steady at 67.50% of the WTI CMA. The absolute differential, however, widened by 1.27 cents/gal to $1.66/gal on Oct. 22.

Western Canada butane inventories also declined, falling 177,600 cubic meters from September to October to reach 595,700 cubic meters, Canadian Energy Regulator data showed. The drop coincided with rising butane prices, as crude oil futures gained ground.

Outside of domestic demand, butane export demand has been strong year over year, with average US October loadings at 473,000 b/d, compared with 351,000 b/d a year prior. Indonesia, Morocco, South Korea, and India have been the biggest importers of US butane, as these countries have increasingly relied on the US in 2026 to replace some of the butane barrels lost with the closure of the Strait of Hormuz.