MOSCOW: Russia plans to boost maritime liquefied petroleum gas (LPG) exports in February by 62.5% from January to 234,100 tons as shipments fetch higher profits than rail shipments.
According to traders, export shipments of LPG or propane-butane from the Russian Black Sea ports of Taman and Temryuk and the Baltic Sea port of Ust-Luga are more profitable than direct exports by rail to Poland as LPG prices are rising in North West Europe and the Mediterranean.
At the same time, prices on the Belarus-Poland border in the city of Brest have fallen sharply, to their lowest level since the summer of 2021.
“Now the price of propane-butane at Brest is about $400 per tonne, while in the ARA region (Amsterdam-Rotterdam-Antwerp) and the Mediterranean, it is at least $150 per tonne higher,” one of the sources said.
Russian LPG shipments to Ust-Luga will increase from 90,400 tons in January to 156,400 tons in February and to Temryuk from 15,300 tons to 22,000 tons. LPG will not be banned under a looming European Union Russian oil product embargo, which comes into force on Feb. 5.
Russia’s LPG exports via land borders will drop by 21.6% to 343,700 tonnes next month. The country has increased its LPG exports in recent months as it can make a higher profit than domestic sales.
Picture Source: Rosneft.
Samuel Adelowokan25 January 2023 - 03:24pm