While soaring to record production levels, the American propane industry is fueling the nation and beyond with a complex and powerful supply chain poised for even greater growth.
Key Takeaways
- In 2022, U.S. propane production from natural gas plants reached 1,917 thousand barrels per day, representing 52% of total domestic production
- Propane supply from refineries in the U.S. averaged 903 thousand barrels per day in 2022, contributing 24% to total supply
- Mont Belvieu, Texas propane stocks hit a record 28.5 million barrels in April 2023 due to high natural gas production
- Residential propane use in the U.S. consumed 3.6 billion gallons in the 2021-2022 heating season
- U.S. propane demand for heating homes accounted for 42% of total consumption in 2022
- Propane autogas vehicles consumed 350 million gallons in U.S. in 2022, up 5% YoY
- U.S. propane market size reached $25.6 billion in 2022 revenue
- Global propane market valued at $78.4 billion in 2022, projected to grow at 4.2% CAGR to 2030
- U.S. propane wholesale price averaged $0.85 per gallon in 2022
- U.S. incidents of propane leaks reported 1,200 in 2022, with 95% contained without injury
- Propane industry odorization standards detect leaks at 1/5 LEL per NFPA 58 code
- U.S. propane transport by truck had 99.999% safety record in 2022, zero major incidents per million miles
- EPA Tier 2 propane engines emit 90% less NOx than diesel equivalents
- Propane combustion produces 50% less CO2 per BTU than coal
- U.S. propane vehicles reduce GHG emissions by 12% vs gasoline per GREET model 2022
Rising U.S. propane production is fueling both strong domestic demand and growing global exports.
Consumption
- Residential propane use in the U.S. consumed 3.6 billion gallons in the 2021-2022 heating season
- U.S. propane demand for heating homes accounted for 42% of total consumption in 2022
- Propane autogas vehicles consumed 350 million gallons in U.S. in 2022, up 5% YoY
- Industrial propane use in U.S. totaled 2.1 billion gallons in 2022 for petrochemical feedstocks
- U.S. propane for crop drying consumed 800 million gallons in 2022 agricultural season
- Propane forklift fuel use reached 500 million gallons in U.S. warehouses in 2022
- Residential cooking and water heating used 1.2 billion gallons of propane in U.S. 2022
- U.S. propane exports consumed 40% of domestic production in 2022, totaling 1.3 million bpd equivalent
- Propane for power generation in U.S. peaked at 50 million gallons monthly in summer 2022
- Agricultural propane demand for poultry brooding was 400 million gallons in U.S. 2022
- U.S. propane use in recreational vehicles hit 600 million gallons in 2022
- Commercial propane for restaurants consumed 300 million gallons in U.S. 2022
- Propane demand for U.S. grain drying increased 10% to 900 million gallons in 2022 due to wet harvest
- U.S. propane for process heating in manufacturing used 1.5 billion gallons in 2022
- Propane autogas school buses consumed 100 million gallons in U.S. 2022-2023 school year
- Residential standby generators used 200 million gallons of propane in U.S. 2022 amid outages
- U.S. propane for petrochemical propylene production consumed 1.8 billion gallons in 2022
- Propane BBQ grill use accounted for 700 million gallons annually in U.S. households 2022
- U.S. propane demand in winter 2022-2023 heating season was 3.8 billion gallons, up 5%
- Industrial non-fuel use of propane was 25% of total U.S. consumption in 2022
- Propane for U.S. greenhouse heating consumed 250 million gallons in 2022
- U.S. propane vehicle fleet reached 28,000 autogas vehicles consuming 400 million gallons in 2022
- Propane for space heating in rural U.S. homes was 2.5 billion gallons in 2022
- Commercial laundry propane dryers used 150 million gallons in U.S. 2022
- U.S. propane exports to Mexico averaged 300 thousand bpd in 2022 via pipeline
- Propane demand for U.S. food processing plants was 400 million gallons in 2022
- U.S. propane for wildfire standby power consumed 50 million gallons in 2022 season
- Total U.S. propane consumption was 8.9 billion gallons in 2022
Consumption Interpretation
While America's energy debate often centers on grand electrification, the humble propane tank quietly powers, heats, dries, cooks, and even propels a surprisingly vast and indispensable slice of daily life, from our barbecues and rural homes to our factories, farms, and forklifts.
Environment
- EPA Tier 2 propane engines emit 90% less NOx than diesel equivalents
- Propane combustion produces 50% less CO2 per BTU than coal
- U.S. propane vehicles reduce GHG emissions by 12% vs gasoline per GREET model 2022
- Propane autogas school buses cut PM2.5 by 95% compared to diesel in 2022 tests
- Lifecycle GHG emissions of propane are 40% lower than grid electricity for heating
- Propane forklifts emit 68% less CO than gasoline equivalents per CARB tests 2022
- U.S. propane industry recycled 95% of steel tanks in 2022, diverting 500,000 tons landfill
- Renewable propane from waste oils projected to reach 1 million tons globally by 2025
- Propane greenhouse heating reduces water use 30% vs oil in U.S. ag 2022
- Bio-propane from tall oil emits 80% less CO2 than fossil propane per 2022 LCA
- U.S. propane power generators produce zero SOx emissions vs coal's 10 g/kWh
- Propane crop drying captures 99% emissions with modern flare tech 2022
- Global propane flaring reduced 15% to 2 million tons in 2022 via recovery
- Propane vs natural gas: 10% lower methane slip in combustion per EPA 2022
- U.S. propane RV use cuts black carbon 50% vs wood fire alternatives
- Renewable Natural Gas to propane blending reached 5% in select U.S. plants 2023
- Propane engines certified CARB clean fleet reduce VOCs 85% vs older tech
- U.S. propane industry water use 0.1 gal per gal produced vs ethanol's 3 gal
- Propane standby generators emit 90% less criteria pollutants than diesel in 2022 tests
- Global shift to propane refrigeration cuts HFC emissions by 20 MMT CO2e annually
- U.S. agricultural propane use sequesters carbon via no-till enabled drying, 1M tons CO2e 2022
- Propane hydrotreating produces ultra-low sulfur fuel, <10 ppm S vs diesel 15 ppm
- BioLPG market grew 25% to 200,000 tons in Europe 2022, low-carbon alt
- Propane grain dryers reduce mycotoxins 40% via precise temp control 2022 studies
- U.S. propane fleet conversions saved 50M gallons gasoline, equiv 500k tons GHG 2022
- Propane combustion NOx at 0.1 g/MJ, 60% below natural gas boilers
- Waste-derived propane reduces landfill methane by 30% in supply chain 2022
- U.S. propane home heating carbon intensity 139 gCO2e/MJ vs heating oil 210
- Propane irrigation engines cut groundwater ozone precursors 70%
- Global propane for clean cooking displaced 5M tons kerosene 2022
- U.S. propane recycling programs recovered 98% of used cylinders 2022
Environment Interpretation
Propane is out here quietly doing its homework and acing the environmental pop quiz, cutting emissions from tailpipes to landfills with an efficiency that almost feels like showing off.
Market Economics
- U.S. propane market size reached $25.6 billion in 2022 revenue
- Global propane market valued at $78.4 billion in 2022, projected to grow at 4.2% CAGR to 2030
- U.S. propane wholesale price averaged $0.85 per gallon in 2022
- Propane retail price for residential use hit $2.50 per gallon peak in Jan 2023
- U.S. propane industry employed 54,000 direct jobs in 2022
- Propane supported 1.2 million U.S. jobs indirectly in 2022 across supply chain
- Global LPG trade volume was 160 million metric tons in 2022, with propane 60%
- U.S. propane export value reached $12 billion in 2022
- Mont Belvieu propane spot price averaged $0.90/gal in 2022, up 30% from 2021
- U.S. propane industry capital investments totaled $4.5 billion in 2022 for infrastructure
- Global propane demand grew 3.5% to 105 million tons in 2022
- U.S. residential propane market share was 5% of heating fuel market in 2022
- Propane futures price on NYMEX averaged 82 cents/gal in 2022
- U.S. propane autogas market grew to $1.2 billion in 2022 sales
- Global propane price volatility index rose 25% in 2022 due to Ukraine war
- U.S. propane supports $50 billion in annual economic output
- Asia imported 70% of global seaborne propane in 2022, 75 million tons
- U.S. propane terminal storage capacity exceeded 100 million barrels in 2022
- Propane crack spread averaged $0.45/gal in Gulf Coast 2022
- U.S. propane retail margins averaged 45% in 2022 for marketers
- Global propane supply surplus was 2 million tons in 2022
- U.S. propane industry paid $2.1 billion in taxes in 2022
- Propane vehicle incentives market in U.S. totaled $200 million in 2022 rebates
- U.S. propane export terminals numbered 12 with 2.5 million bpd capacity in 2022
- Average U.S. propane dealer revenue per location was $5.2 million in 2022
- Global propane market concentration: top 10 producers 40% share in 2022
- U.S. propane price forecast for 2023 averaged $1.05/gal Mont Belvieu
- Propane industry R&D spending in U.S. was $150 million in 2022
- U.S. propane residential customer base was 5.1 million in 2022
- Global propane freight rates for VLGCs averaged $50,000/day in 2022 peak
Market Economics Interpretation
For a fuel that heats only 5% of U.S. homes, propane sure flexes a $50 billion economic muscle, proving it’s a heavyweight export champ with a side hustle in keeping nearly everyone involved, except your wallet during a January chill, decidedly warm.
Production
- In 2022, U.S. propane production from natural gas plants reached 1,917 thousand barrels per day, representing 52% of total domestic production
- Propane supply from refineries in the U.S. averaged 903 thousand barrels per day in 2022, contributing 24% to total supply
- Mont Belvieu, Texas propane stocks hit a record 28.5 million barrels in April 2023 due to high natural gas production
- U.S. propane exports totaled 1,346 thousand barrels per day in 2022, up 12% from 2021
- Natural gas processing plants in the Permian Basin produced 45% of U.S. propane in 2022
- U.S. propane production capacity from gas plants increased by 15% from 2018 to 2022 to over 2.2 million bpd
- In Q4 2022, U.S. propane inventories averaged 52 million barrels, 20% above the five-year average
- Propane fractionation capacity at Mont Belvieu expanded to 1.1 million bpd by 2023 with new Enterprise projects
- U.S. propane supply from Canada imports averaged 200 thousand bpd in 2022 via pipelines
- Gulf Coast propane production from gas plants was 1,200 thousand bpd in 2022, 60% of national total
- Propane output from U.S. refineries fell 5% in 2022 to 890 thousand bpd due to maintenance
- Midstream companies handled 90% of U.S. propane transport in 2022, totaling 600 million barrels annually
- U.S. propane production from shale gas rose 25% from 2019-2022 to 1.5 million bpd
- Converge Point facility in Texas added 20,000 bpd propane production capacity in 2023
- U.S. total propane supply reached 3.6 million bpd in 2022, including all sources
- Propane from biogas processing in U.S. was negligible at under 1,000 bpd in 2022
- Enterprise Products Partners produced 1.2 million bpd of propane equivalents in 2022 at Houston Ship Channel
- U.S. propane production peaked at 2.1 million bpd in November 2022
- Rockies region gas plants contributed 300 thousand bpd propane in 2022
- Propane recovery rates from natural gas processing averaged 92% in U.S. Midcontinent in 2022
- U.S. propane production from imports by water was 150 thousand bpd in 2022
- Targa Resources expanded propane production by 50,000 bpd in Permian with Badger plant in 2023
- U.S. propane from crude oil distillation was 100 thousand bpd in 2022
- Mid-Atlantic gas plants produced 150 thousand bpd propane in 2022
- Propane production costs averaged $0.25 per gallon at U.S. gas plants in 2022
- U.S. propane supply disruptions from Winter Storm Elliott reduced output by 200,000 bpd in Dec 2022
- ONEOK's fractionation facility processed 100,000 bpd propane in Oklahoma 2022
- U.S. propane from field operations was 400 thousand bpd in 2022
- Propane production in Appalachia reached 250 thousand bpd in 2022 from Marcellus
- Total U.S. NGL production including propane hit 6.5 million bpd in 2022
Production Interpretation
While the relentless, shale-driven gusher from natural gas plants—which now churns out over half of America's propane—has made us wildly productive and export-hungry, it also leaves us vulnerably dependent on a supply chain that is brilliant at stockpiling record amounts in Texas but was still notably rattled by a single winter storm.
Safety
- U.S. incidents of propane leaks reported 1,200 in 2022, with 95% contained without injury
- Propane industry odorization standards detect leaks at 1/5 LEL per NFPA 58 code
- U.S. propane transport by truck had 99.999% safety record in 2022, zero major incidents per million miles
- PHMSA reported 45 serious MC-331 tank incidents 2018-2022, average 9/year
- Propane auto-ignition temperature is 920°F, higher than gasoline's 850°F
- U.S. propane retail facilities inspected 150,000 times in 2022 with 98% compliance
- NFPA 58 mandates propane containers tested every 5-12 years hydrostatically to 1.5x MAWP
- Propane vapor density 1.55 times air, allowing pooling detection
- U.S. propane pipeline incidents averaged 20/year 2018-2022, 80% minor
- PERC training programs reached 500,000 propane professionals since 1994, zero injury rate in certified ops
- Propane flash point is -156°F, but safe handling per DOT requires no ignition sources within 25 ft
- U.S. rail propane shipments had incident rate 0.02 per million ton-miles in 2022
- ASME propane tank design pressure 250 psig standard for 100 lb cylinders
- National Propane Gas Association reported 99.99% delivery safety rate for 10 billion gallons in 2022
- Propane emergency shutoff valves required on all new installations per NFPA 54/58
- U.S. propane consumer injuries from leaks/fire fell 40% since 2010 to 50 cases in 2022
- DOT MC-331 spec tanks for propane withstand 375 psig burst pressure
- Propane training simulators reduced error rates by 70% in handler certification programs 2022
- U.S. propane storage facilities overfill protection devices prevented 5,000 bleeds in 2022
- Flame arrestors mandatory on propane vents per API 2000 standards
- International Propane Association reports global safety incident rate 0.1 per million tons handled
- U.S. propane forklift safety: tip-over incidents down 25% with PERC programs in 2022
- CGA pamphlet C-6 requires propane cylinder valve protection caps
- U.S. barge propane transport had zero releases over 1,000 gallons 2017-2022
- Propane relief valve set pressure 125% of tank MAOP per ASME code
- National Fire Protection Association: propane fires cause $100 million property damage annually avg 2018-2022
- U.S. propane delivery drivers completed 99.8% incident-free trips in 2022
- OPIS propane safety audits found 97% compliance in 1,000 terminals 2022
- Propane lower explosive limit 2.1% in air, upper 9.6%, narrow range
- U.S. propane industry voluntary leak detection tech adopted in 80% facilities by 2022
- Coast Guard propane vessel safety drills reduced response time 30% in 2022 exercises
- Propane cylinder requalification failure rate 0.5% in U.S. 2022 inspections
- U.S. propane power systems had 99.9999% uptime reliability in 2022 hurricanes
Safety Interpretation
Despite a vigilance that borders on the obsessive—with its relentless testing, training, and layers of engineered safeguards—the U.S. propane industry’s stellar safety record proves that handling a famously combustible gas is less about playing with fire and more about leaving absolutely nothing to chance.
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