Executives at Appalachian pure-play Antero Resources Corp., the nation’s second largest natural gas liquids (NGL) producer, are warning that without an adequate build in propane inventories through the fall, the world would be undersupplied this winter. 

NGL producers

“U.S. domestic propane buyers will need to outbid export markets this summer to build sufficient inventories for this upcoming winter,” said Antero’s David Cannelongo, vice president of liquids marketing and transportation. “That in turn will drive U.S. and international liquefied petroleum gas (LPG) pricing higher.”

Antero, which also is the nation’s largest NGL exporter, is moving about half its volumes overseas. Including hedges, the company said its average liquids price during the first quarter was $39.79/bbl,...