This data-file captures the economics of LPG exports, ethane exports, and/or propane exports from North America to Europe and Asia. Capex costs of LPG exports are c50% below LNG. Recent pricing underpins project-level c30% IRRs. The project pipeline is growing, but the data in this model of LPG exports do suggest strong returns for existing LPG exporters, and those with near-term expansions.
US LPG exports approached 3Mbpd in 2024. 1.8Mbpd was propane, 0.5Mbpd was ethane and 0.5Mbpd butane. Despite some tariff-trade turbulence in 2025, economics look very strong for exporting these by-products of US gas growth.
This model captures the costs of LPG exports, the costs of propane exports, or the costs of ethane exports, based on past projects and other capex and opex lines, informed by our work into the economics of LNG exports.
The capex costs of LPG exports average c$350/Tpa, which is about half the level of an LNG export facility, based on our review of past projects and planned expansions, on the Capex/Projects tab of the model (chart below).
The reasons for lower capex costs are that liquefying LPGs requires about -40% less energy in kWh/ton terms than liquefying methane (numbers are built-up from first principles in the data-file, drawing on our work into LNG chilling). Moreover, the inputs to an LPG export facility have already been purified in a fractionation facility upstream, so there is less processing on site.
Hence our base case economics of LPG exports sees a c30% IRR for a facility on the Gulf Coast or in Western Canada, which sells product into Europe or Asia, for example, when selling product into ethane crackers that thereby undercut naphtha crackers on pricing.
The economics of LPG exports can be stress-tested in the data-file. IRRs range from 10-60% under scenarios considered, with the two key input variables being the purchase price of feedstock at origin and sales price of product at destination.
The two largest companies in US LPG exports include Enterprise Product Partners and Energy Transfer, which both have large facilities operating on the US Gulf Coast, and both have expansions underway. Other operators and PE-backed projects are discussed in the Capex/Projects tab.