Propane

A natural gas liquid used for heating, grain drying, and petrochemicals, priced at Mont Belvieu.

Overview

Propane sits in the natural gas liquids basket with ethane and butanes, fractionated at Gulf Coast and Alberta hubs. Mont Belvieu in Texas and Conway in Kansas set US benchmarks, and exports through Gulf terminals tie supply to Asian petrochemical demand and winter heating abroad. Grain drying in a wet Midwest autumn can double regional differentials, and propane dehydrogenation plants in Asia absorb cargoes for plastics feedstock. Production flows with natural gas output and with crude, so OPEC cuts that reduce associated liquids tighten propane alongside oil. The Saudi contract price anchored Asian markets historically and still moves sentiment.