In its 2Q25 earnings, Enterprise Products confirmed a key point East Daley Analytics has flagged for clients: NGL export markets are loosening as new expansions in the U.S. and abroad have increased supply, leading to reduced dock space and declining spot rates. This confirms a broader slack in the NGL market, which East Daley has been monitoring.\n\nEnergy Transfer reached a final investment decision on an expansion of its Transwestern Pipeline to serve growing natural gas demand in the Southwest. The expansion, which includes a 1.5 Bcf/d capacity increase, is designed to meet regional growth and improve delivery reliability amid rising demand.\n\nDrilling in the Permian Basin fell by 34 rigs in 2Q25, a 12% quarter-over-quarter decline, reflecting a shift in operator strategy amid changing market conditions. This rig slide has split the midstream sector into winners and losers, with some companies benefiting from reduced supply and others facing pressure due to lower activity.\n\nEnterprise Products (EPD) confirmed a key point East Daley Analytics has flagged: NGL export markets are loosening as new expansions in the U.S. and abroad have increased supply, leading to reduced dock space and declining spot rates. This confirms a broader slack in the NGL market, which East Daley has been monitoring.\n\nUS propane exports have seen relatively steady growth, and East Daley forecasts growth to temper but continue trending higher. However, recent trade tensions have introduced headwinds, particularly affecting export volumes to key markets.\n\nUS ethane has quietly powered the next generation of plants feeding the global plastics boom, driven by strong demand in Asia and Europe. Despite market fragmentation, ethane remains a critical feedstock for downstream producers.\n\nONEOK (OKE) and Plains All American (PAA) have bought out the Ontario Municipal Employees Retirement System’s (OMERS) interest in BridgeTex Pipeline, positioning the company to take advantage of tightening Permian oil egress and growing demand for crude transport to the Gulf Coast.\n\nIn 1Q25 earnings reports, many US crude producers, especially Permian operators, lowered their full-year Capex guidance in response to WTI price volatility. Despite this pullback, Permian crude growth remains on track due to strong production efficiency and improved logistics.\n\nBridgeTex Pipeline, the last crude oil pipeline to fill from the Permian Basin to Houston, is preparing for growth as Permian oil egress tightens. This development highlights increasing pressure on existing infrastructure and the need for new capacity.\n\nEnergy Transfer (ET) reached a final investment decision (FID) on an expansion of its Transwestern Pipeline to serve growing natural gas demand in the Southwest. The expansion, which includes a 1.5 Bcf/d capacity increase, is designed to meet regional growth and improve delivery reliability amid rising demand.\n\nVenture Global (VG) made a final investment decision (FID) for $15.1B on CP2 LNG Phase 1 and the associated CP2 LNG Phase 2 project, signaling strong confidence in long-term LNG demand and the company’s ability to deliver on its expansion plans.\n\nWilliams has started service on the 1.8 Bcf/d Louisiana Energy Gateway, ushering in a new era of gas delivery to the Gulf Coast. This infrastructure milestone strengthens regional supply and improves access for downstream users.

ONEOK, Plains Take Over BridgeTex Pipeline

ONEOK and Plains All American have acquired the Ontario Municipal Employees Retirement System's (OMERS) stake in BridgeTex Pipeline, positioning the company to capitalize on tightening Permian oil egress and rising demand for crude transport to the Gulf Coast. The move comes amid broader market changes, including declining NGL export rates due to increased supply from U.S. and international expansions, a 12% quarter-over-quarter drop in Permian Basin drilling rigs, and growing investment in pipeline infrastructure such as Energy Transfer's Transwestern expansion and Venture Global's $15.1B LNG projects. US propane exports remain steady with minor headwinds from trade tensions, while ethane continues to support global plastics demand. Key infrastructure developments include Williams' Louisiana Energy Gateway and Energy Transfer's FID for a 1.5 Bcf/d capacity increase in Transwestern.