US exports of crude, gasoline, distillates, LPG booming

US exports of crude over 2 million b/d recently

As US exports of crude topped 2 million barrels per day (b/d) in recent weeks, gasoline, distillate and LPG exports have also increased.

Enterprise’s Morgan’s Point terminal located on the Gulf Coast came online last year along with Sunoco’s Marcus Hook terminal on the East Coast.  Since then, ethane exports have gradually risen from just under 30,000 b/d in the third quarter of 2016 to nearly 140,000 b/d in Q3 2017.

In the US, ethane production is expected to average approximately 1.45 million b/d in 2017, up from 1.25 million b/d in 2016.  Higher domestic consumption from the petrochemical industry and increased export demand are driving the ethane market boost.

Enterprise says capacity at its Morgan’s Point export terminal is at 200,000 b/d and with the export trade booming, the company is planning a second ethane export terminal on the Gulf Coast.

In 2017, India was the largest importer of US ethane, followed by the United Kingdom, Norway and Sweden.

Propane exports are also on the rise, increasing from just under 600,000 b/d in 2015 to 770,000 b/d in 2016 and are currently at 970,000 b/d.

Over 40 per cent of US propane exports go to East Asia, with Japan, South Korea and China being top customers in the region.  Mexico is the fourth largest importer of US propane.

US propane exports have averaged about 1 million b/d in five out of ten months so far this year.

US exports of gasoline and middle distillates are also on an upward trajectory, with the exception of a decline in September due to hurricanes.  In 2017, exports of gasoline and middle distillates averaged over 2.3 million b/d, increasing from 2.2 million b/d in 2016 and 2.1 million b/d in 2015.

As a result of increased exports and rising domestic use, total US gasoline and distillate inventories are dropping, despite record refinery runs this year.

Gasoline inventories are down 26 million barrels since the beginning of the year and distillate inventories are down by 36 million barrels.