The majority of U.S. gas processing plants are located in Texas, Louisiana, Oklahoma, New Mexico, Kansas, Colorado, and Wyoming. It is at these fractionation hubs that the mixed NGL's are split into specification ethane, propane, iso-butane, normal butane, and natural gasoline products, which are then placed into underground storage awaiting further distribution. Propane Supply Propane is used as a fuel for residential and commercial heating and cooking, as a transportation and agricultural fuel, and as a petrochemical feedstock. Inc. Refineries are located throughout the U.S., producing propane that is generally distributed by truck transports and rail cars. About half of the U.S based refinery propane supply is located on the U.S. Gulf Coast.
Propane is imported from Canada and via waterborne imports from northern Africa and the Middle East.
Canadian imports are delivered via the Cochin pipeline, and via rail. Waterborne propane imports mostly land in the U.S. Gulf Coast, though some are received at East Coast terminals. Imports into the U.S. Gulf Coast rely upon the same distribution channels as domestic propane production. Product pricing is a primary driver of economic value. The processing margin is the difference in value resulting from the combined value of the residue gas and NGL's extracted at a processing plant less the value of the raw gas and fuel consumed at the plant, assuming the raw gas could be sold directly into a natural gas pipeline unprocessed.