In late 2025, Energy Transfer’s ongoing expansion at its Marcus Hook NGL export terminal is becoming increasingly relevant for Appalachian gas producers. The initial optimization phase, announced in April 2024, is designed to boost ethane refrigeration and storage capacity, with the ultimate goal of increasing exports from the region. While specific capacity figures remain undisclosed, the project is a significant development that could reshape the market dynamics for Appalachian ethane.

This expansion is expected to spark competition among existing pipeline operators for long-term contracts and among buyers for future sales. It could also open up new global markets, intensifying the search for competitively priced ethane within the Appalachian basin.

The State of Appalachian Ethane in 2025

The economics of producing NGL-rich gas in the Appalachian basin continue to favor it over dry gas, a trend that has held strong for most of the last decade. This has driven a significant increase in wet gas production, which by the end of 2Q 2025 accounted for about 28% of the basin’s total gas output. With ethane making up a large portion of the NGL barrel, this has created a substantial supply of potential ethane.