One of the major developments related to the Shale Gas revolution in the United States that has attracted little attention from market analysts is the sharp expansion of U.S. liquefied petroleum gas (LPG) exports. The substantial increase in domestic supply has not only caused U.S. LPG imports to decline, but the United States has become one of the world's largest LPG exporters and, according to the EIA, U.S. LPG exports are expected to persist well into the next decade.

The sharp increase in U.S. LPG exports has broad implications for global LPG market dynamics and trade flows. First, as Asian consumers increase their purchase of U.S. LPG in an attempt to to diversify their sources of supply and access cheaper LPG, and second, LPG prices and the existing pricing mechanism may come under pressure from intense competition from U.S. supplies, even though U.S. data on LPG prices and the existing pricing mechanism may be under pressure. competition from U.S. supplies although price data show no clear trend and prices are highly cyclical.

While traditional sources of propane demand, such as rural home heating and agriculture, do not appear likely to increase in the United States, its use in transportation where it was already present is expected to increase due to its competitive price. Propane has traditionally been used as a fuel for forklifts, buses, trucks and other light commercial vehicles and is being studied for use in municipal utilities and similar applications. in municipal utilities and similar applications.

LPG in the United States remains a cheaper alternative to the price of other traditional fuels