OREANDA-NEWS. A seasonally mild winter in the US caused by the El Nino weather pattern could lower heating demand by about 10pc, reducing domestic propane demand by about 55,000 b/d, according to investment firm Tudor Pickering Holt.

However, the weakened heating demand this season will likely have little impact on propane prices, analysts wrote.

"While an El Niño winter can have a significant impact on natural gas demand, propane impacts are muted as residential/commercial heating makes up less than half of total propane demand," they said.

Enterprise Products Partners is expanding its export terminal capacity by 200,000 b/d by the end of this year. That amount is fully contracted, and Tudor Pickering estimates the anticipated 900,000 b/d of total US export capacity seen online in the first quarter of this year should allow for growth in exported volumes until other terminal projects, including the Sunoco Logistics expansion at Marcus Hook, Pennsylvania, and the Phillips 66 terminal project in Sweeny, Texas come online by 2017.

In the meantime, US propane prices remain weak relative to last year due to a glut of oversupply.

LST propane averaged 94¢/USG in October 2014; so far this month prices averaged 47.5¢/USG, as inventories continue to swell to record levels.