U.S. NGL Exports Surge as Middle East Disruptions Boost Demand
U.S. natural gas liquids (NGL) exports are projected to surge by more than 10% this year, primarily due to international buyers seeking alternatives to disrupted Middle Eastern supplies. The U.S. and Canada are solidifying their roles as dependable energy suppliers, with growing demand for clean fuels and petrochemical feedstocks further fueling this momentum. Midstream operators are enhancing existing marine docks and developing new export terminals to meet this rising global demand, positioning energy infrastructure companies to benefit from a long-term shift in global trade dynamics.
The U.S. leads global NGL production, accounting for nearly 49% of the world’s output, with Canada contributing an additional 5%. The Permian Basin, known for its oil output, is increasingly producing more natural gas and NGLs, with projections indicating faster growth in these areas compared to oil volumes. The demand for NGLs is driven by various applications, such as ethane for plastics manufacturing and propane for cooking and heating, with the U.S. holding a significant share of global waterborne LPG exports.
Middle East supply disruptions, particularly due to the Iran war starting in March, have accelerated demand for U.S. NGL exports. Forecasts for 2026 U.S. NGL exports have increased by almost 120 MBpd, with midstream companies like Enterprise Products Partners (EPD) and Targa Resources (TRGP) reporting higher export volumes and earnings. The strategic value of U.S. supply has been reinforced, with countries historically reliant on Middle Eastern supplies now turning to North American NGLs.
A new wave of NGL export infrastructure projects is set to expand capacity in the U.S. and Canada over the next few years. Key projects include EPD’s Neches River Terminal expansion, ET’s Marcus Hook Terminal, and MPLX and ONEOK’s joint LPG export terminal in Texas City. In Canada, Keyera’s ACE Rail Terminal and AltaGas’ projects will add significant LPG and propane capacity. These developments underscore the long-term growth potential for energy infrastructure companies in the NGL sector.