U.S. Butane Exports Reach Record High Volumes During 2024: EIA

U.S. exports of normal butane averaged nearly 500,000 barrels per day (b/d) during 2024, up 12 percent compared to the previous year, according to a March 6 report published by the U.S. Energy Information Administration. The U.S. is exporting record volumes of normal butane, in line with increasing global demand for liquefied petroleum gases (LPG).

The U.S. is the world’s largest butane exporter, with the highest exports to Asia and Africa. Last year, 41 percent of U.S. butane exports went to Asia, while 36 percent were directed to Africa. Butane is cheaper to store and transport in warmer climates than propane. The leading African importers of U.S. butane were Morocco and Egypt, while the top Asian importers were Indonesia, Japan and South Korea. In total, these five countries made up over 50 percent of the U.S.’s butane exports.

Butane is comparable to propane, and both are considered LPGs. U.S. LPG production has increased significantly, with rising natural gas production, particularly in liquids rich areas such as the Marcellus and Utica in the Northeast and Eagle Ford in Texas. Similar to trends in the propane market, higher butane production has led to lower U.S. butane prices compared to global benchmarks in the Middle East and East Asia, and as a result this has increased global demand for U.S. butane due its price competitiveness.

Lower U.S. butane spot prices compared to other global benchmark spot prices led to significant wide price spreads during 2023 and 2024. The price differentials incentivized significant amounts of butane loads from the U.S. compared to other countries. The U.S. Gulf Coast butanes discount to Saudi Arabia and East Asia declined during the back end of 2024, after butane prices rose in the U.S. at a greater pace than in other regions. Despite the narrowing price spread during the second half of 2024, U.S. exports remained robust, averaging 12 percent more than during the second half of 2023.