Natural Gas Distribution NAICS 221210

May 23, 2025 - US Natural Gas Liquids Exports Rise Despite Trade Strife

• In April, US exports of natural gas liquids (NGLs) reached a record high despite the trade war with China, according to Reuters. US NGL exports in April reached 2.9 million barrels per day (bpd), marking the highest monthly level of US NGL exports, according to ship tracking firms Vortexa and Kpler. NLGs, which are derived from natural gas processing, include butane, propane, and ethane. NGLs are used in petrochemicals and plastics production and as fuels. US exports of NGLs increased in April despite a pullback in demand from China, as global rerouting efforts led to increased demand from other export markets, including Brazil, India, and Japan. Nearly half of US ethane exports typically go to China, and all of China’s ethane imports come from the US. On May 12, 2025, the US and China declared a 90-day reduction in the tariffs each country imposes on the other amid further negotiations.
• In May, the Trump administration lifted a stop-work order for the Empire Wind offshore wind project off the coast of New York, according to Utility Dive. Through the Department of the Interior, the administration ordered a halt to work on Norway-based Equinor’s Empire Wind project on April 16, 2025, arguing the project had been rushed through by the Biden administration despite a lack of adequate analysis. The resumption of work on Empire Wind was part of a negotiation between New York Governor Kathy Hochul and the administration, which includes potential natural gas pipelines from Pennsylvania. In a release, Gov. Hochul stated, “Now, Equinor will resume the construction of this fully-permitted project that had already received the necessary federal approvals. I also reaffirmed that New York will work with the Administration and private entities on new energy projects that meet the legal requirements under New York law.” In a post on X, Interior Secretary Doug Burgum said that he was “encouraged by Governor Hochul’s comments about her willingness to move forward on critical pipeline capacity”

• In February, the Federal Energy Regulatory Commission (FERC) approved a proposal by grid operator PJM Interconnection to expedite the process of bringing more power plants online amid rapid growth in power demand by data centers, according to Bisnow. Utilities and grid operators are increasingly looking to natural gas plants as the quickest way to bring new electricity capacity online. By 2030, data center electricity demand could drive 50 gigawatts of new natural gas generation capacity, increasing power-sector gas demand by nearly 17%, according to S&P Global. FERC’s approval will allow PJM to speed up the review process for up to 50 new power plants, most of which are gas-fired. The expedited reviews hope to avoid future capacity shortages as data center power demand increases. Some data center projects are being sited near or co-sited with gas power plants and bypassing grid connections.
• US electricity generation capacity additions in 2025 are expected to be led by solar and battery storage projects, according to the US Energy Information Administration (EIA). The US is projected to add 63 gigawatts (GW) of generating capacity in 2025, led by utility-scale solar with 32.5 GW, followed by battery storage (18.2 GW), wind (7.7 GW), and natural gas (4.4 GW). Additions in Texas (11.6 GW) and California (2.9 GW) will account for nearly half of the solar capacity additions in 2025. Other states that are expected to have significant upticks in solar additions in 2025 include Arizona, Florida, Indiana, Michigan, and New York.