Executive Summary: Infrastructure: The emergence of the Repauno Port & Rail Terminal marks a pivotal shift in the Northeast LPG market. Rigs: The total US rig count decreased by 14 during the week of April 20 to 558. Liquids-driven basins decreased by 10 W-o-W from 464 to 454. Flows: For the week ending May 3, US natural gas volumes averaged 68.9 Bcf/d in pipeline samples, marking a W-o-W decline from 69.8 Bcf/d the previous week.
Infrastructure:
A new player on the Delaware River is eyeing Energy Transfer’s (ET) stranglehold on the Northeast LPG market. The Repauno Port & Rail Terminal, located in Gibbstown, NJ, is planning an expansion that would challenge the Marcus Hook facility as the default outlet for Appalachian LPG exports.
Repauno is backed by upstart developer FTAI Infrastructure (FIP) and led by Hank Alexander, former Senior Vice President of Commercial Operations at ET. The site spans 1,600 acres and features a 40-foot deepwater dock capable of handling very Large Gas Carriers (VLGCs), a transloading facility with direct access to multiple railways, plus an underground LPG cavern.
Repauno can currently handle up to 24 Mb/d of LPGs, mostly butane. FTAI plans to scale export capacity up to 96 Mb/d through infrastructure upgrades, including a new cryogenic storage tank and additional marine loading arms. The company is targeting 4Q26 to complete the expansion.
The Repauno expansion is currently in the capital-raising phase. FTAI is seeking up to $300MM in municipal bond financing to complete the project, according to investor materials. The company is targeting 4Q26 to complete the expansion.
FTAI acquired the Repauno site in 2016 and has invested ~$330MM to date in upgrades. The terminal loaded 10 LPG cargoes in 2024, signaling operational readiness ahead of the Phase 2 expansion.
Commercial interest in the project has been strong. Range Resources (RRC) has confirmed a 20 Mb/d contract with the Repauno expansion starting in January 2027. FTAI claims total commitments of 71 Mb/d from three customers, including Range.
The Repauno expansion would change the competitive landscape for Northeast LPGs if FTAI can complete the project. ET has a strategic moat at Marcus Hook and dominates marine exports. That role as the default egress point for Appalachian LPGs enabled it to command a commercial premium, but that leverage now appears at risk.
Rigs:
The total US rig count decreased by 14 during the week of April 20 to 558. Liquids-driven basins decreased by 10 W-o-W from 464 to 454.
Flows:
For the week ending May 3, US natural gas volumes averaged 68.9 Bcf/d in pipeline samples, marking a W-o-W decline from 69.8 Bcf/d the previous week.
Liquids-driven basins declined 0.5 Bcf/d to 17.5 Bcf/d, recording a W-o-W decrease. The Permian Basin remained stable with a W-o-W to average 6 Bcf/d, while the Anadarko Basin sample declined 11% to an average of 3.5 Bcf/d.
Gas-driven basins declined on a W-o-W basis by 600 MMcf/d, averaging 43.79 Bcf/d. Within this segment, the Haynesville declined by 2.2% from 10.8 Bcf/d to 10.6 Bcf/d. Similar to the Appalachian that declined from 32.54 to 32.27 Bcf/d, a 0.8% decrease.
Looking ahead, the Appalachia and Haynesville basins will be pivotal to monitor. With increased demand on the horizon, we expect increased production from these regions will be critical to maintaining balance between supply and demand.
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