Propane industry expectations for 2026

I’ve been keeping tabs on the Top Propane Retailers forms that have been crossing our desk over the past few months. These forms are full of valuable information that company leaders submit annually and that we feature in our popular February issue.

You’ll have to wait one more month for the rankings. However, I did peek at one of the questions we asked on the forms this year because it relates to retailers’ plans and priorities in the new year. Their answers helped to inform the first part of our new list: Six developments for the industry to follow beginning in 2026. Here they are.

⦁ Propane retailer operations focused more on safety. In light of several high-profile incidents in recent years, the industry seems set on resetting the safety button to ensure it’s doing everything possible to protect employees and customers. On our forms, propane retailers cited safety among their priorities for 2026. “We remain committed to continuously educating our team and addressing unsafe conditions, even when those conversations with customers are difficult,” one retailer shares.

⦁ An even stronger link between the U.S. and global markets. Companies like Enterprise Products Partners and Energy Transfer are primed to increase U.S. LPG export capacity this year and beyond – from 1.8 million barrels per day (bpd) to 2.4 million bpd. As they do so, buyers and sellers across the globe will prioritize their partnerships at the expense of the U.S. retail market. As JD Buss of Westlark Advisors told us late last year, “The [U.S.] retail segment has gone from a super majority to a super minority of the daily propane barrel.”

⦁ An oversupplied U.S. propane market. Even with a busy export market, propane fundamentals have been positive for retailers and consumers, owing to an oversupplied U.S. market that’s kept prices in check. U.S. propane inventories reached another record (106 million barrels) going into the 2025-26 winter. We hear the oversupply trend will continue, but watch for any developments that could change what is now the status quo – such as a big drop in U.S. crude or natural gas production.

⦁ Propane as a solution for surging power demand. The rise of artificial intelligence and the buildout of data centers across the country will continue to overload the electric grid and raise energy costs for consumers. In fact, a 2025 report by the U.S. Department of Energy revealed that existing generation retirements and delays in adding new capacity will lead to a surge in power outages and a growing mismatch between electricity demand and supply. These retirements increase the risk of power outages by 100 times in 2030, the report states. Propane has been a solution for many types of power generation applications, and now it’s in the discussion for data centers as well, as evidenced by a new white paper, developed by the National Propane Gas Association, that details its potential. It’s propane’s time to shine. Who’s going to step into this new arena?

⦁ Private equity attracted to propane. Last year, we reported on the growing trend of mergers and acquisitions funded by private equity firms, which can be carried out on a bigger and faster scale, we’re told. Based on how 2025 ended, with a flurry of deals involving private equity, the propane market remains an attractive sector for investors. One adviser involved in a big deal late last year acknowledged a “growing pool of capital that is focused on the propane industry.” Upon completion of another late 2025 deal, a leader at one firm added, “The propane industry is primed for consolidation.”

⦁ An extended stay in Nashville. After two years in its new host city of Charlotte, North Carolina, the industry’s largest trade show returns to Nashville, Tennessee, for the next three years. The Southeastern & International Propane Expo broke attendance records there in 2016 and 2017. April’s return will mark the first propane show in Music City since 2023.

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