In 2023, the United States witnessed remarkable milestones in ethane production, consumption, and exports, as revealed by data from the EIA‘s Petroleum Supply Monthly. The surge in ethane consumption within the global petrochemical sector, coupled with increased ethane recovery associated with natural gas production, fueled these achievements.
Ethane production in the US soared by 9%, reaching an average of 2.6 million barrels per day (bpd) in 2023, primarily propelled by record-breaking natural gas production. Nearly all ethane extraction in the US occurs at natural gas processing plants, where ethane and other natural gas plant liquids (NGPL) are separated from raw natural gas. Notably, the Texas Inland and New Mexico refining districts, spanning the Permian Basin, contributed to 61% of the total US ethane production in 2023. Production in these districts held steady at 1.6 million bpd, comparable to 2022 levels. Meanwhile, the Appalachian No. 1 Refining District, covering much of the Appalachian Basin production area in Pennsylvania and West Virginia, accounted for 11% of the overall US ethane production, also showing minimal variance from 2022 figures.
Domestic ethane consumption, measured by product supplied, experienced a 5% uptick in 2023, reaching 2.1 million bpd. Ethane finds predominant use within the US petrochemical industry as a primary feedstock. The commissioning of two new petrochemical crackers, located in Port Arthur, Texas, and Monaca, Pennsylvania, in late 2022, bolstered operations and contributed to the increased consumption observed in 2023. Ethane utilization in the Gulf Coast (PADD 3), where the majority of crackers are situated, witnessed a 4% surge from 2022, reaching 2.0 million bpd. Furthermore, ethane consumption on the East Coast (PADD 1) more than doubled, averaging 38,000 bpd in 2023, marking a substantial increase of 22,000 bpd from 2022.
US ethane exports achieved an unprecedented average of 471,000 bpd throughout 2023, representing a 57,000 bpd escalation from the preceding record. The surge in ethane exports was propelled by the burgeoning demand in the global petrochemical sector and the expansion of tanker capacity. Additionally, the competitive pricing of US ethane vis-à-vis other global feedstocks played a significant role in boosting exports. Notably, China emerged as the primary importer of US ethane exports, accounting for 45% of the total, followed by India (16%), Canada (14%), and Norway (10%).