Originally Released on 14 December 2017
This week we are not witnessing any vessel heading to FE via the Cape of Good Hope.
After 6 months of STS between Panama and Chorillo, Petredec’s Morston has finally crossed the Panama Canal and is signalling for Houston, ETA 19-Dec.
The following Ineos’ Ethane-dedicated vessels are on their to deliver their Ethane cargo to Europe:
RIL’s VLEC Ethane Topaz loaded another ethane cargo at Morgans Point and is heading to India. She is expected at Dahej by 9-Jan.
, ex-Enterprise, diverted towards Mohammedia, ETA 22-Dec. She was originally bounded for F.East.
Petredec’s Clipper Victory
, ex-Targa, is crossing the Atlantic Ocean and signalling for Suez Canal, ETA 29-Dec.
– Petredec’s Yamabuki, ex-Nederland, is currently discharging at Teluk Semangka.
With the end of the aforementioned voyage, Indonesia is expected to receive the following last cargoes for 2017:
- Bw Tokyo, ex-Al Ruwais, is expected at Teluk Semangka by 16-Dec.
- Shell’s Chaparral, ex-Nederland, is expected at Teluk Semangka by 24-Dec.
- Shell’s Dorset, ex-Ras Laffan, is expected at Kalbut by 15-Dec.
- Petredec’s Pacific Shanghai, ex-Asaluyeh, is expected at Kalbut by 20-Dec.
After her USGC to S. America voyage, Bw Trade will now cross the Atlantic ocean to load a cargo out of Soyo, ETA 26-Dec.
Gyxis’ Pyxis Alfa is heading to load a cargo at Soyo, ETA 18-Dec.
Promise is heading to load a cargo at Biko, ETA 24-Dec.
Hellas Hercules is crossing the Strait of Malacca and is signalling for Escravos, ETA 8-Jan.
Shell’s Oriental King, ex-Nederland, is heading to discharge part of her cargo via STS with Shell’s Lubara at Male Anchorage on Dec-16.
Ming De is heading to discharge part of her cargo via STS with Ming Zhu at Sriracha, Thailand on 15-Dec.
The Navigator Prominence (37,000cbm FR), a newbuild that speculatively ballasted to the West, has been fixed to Geogas ex NWE.
StealthGas’ two newbuilds, the Eco Arctic and Eco Ice were both fixed to Vitol for 2 years.
Grangemouth exports receive a second hit
INEOS has declared the first force majeure on the North Seas’ Forties Pipeline (also known as FPS) in decades, following the discovery of a widening hairline fracture along a portion of the pipe near Aberdeen. The FPS pipeline, which connects 80 fields in the N. Sea and has a capacity of 450 kbpd, is expected to be down for at least two weeks. Approximately 44% of total UK NGL production originates from five terminals (Flotta, Forties, Nigg, Norpipe and Sullom Vo), implying a significant reduction in their associated LPG production.
Looking at the Grangemouth installation, LPG exports decreased significantly starting from June. August is typically a month for North Sea maintenance; however this year the terminal has suffered from an extended period of field maintenance that ended in mid-November, pushing back several liftings. The UK Forties oil pipeline came as a second hit to the terminal, adding additional delays to liftings.
Grangemouth is a major supplier of Northwest Europe butane market. Kpler data reveal that Nederlands is the largest European purchaser, receiving 38% of Grangemouth’s total LPG volume, or 71 Kt, for 2017.
The UK LPG production limit will likely force European buyers to seek US waterborne LPG cargoes to meet the inflated winter heating demand.
Originally Released on 7 December 2017
This week we are witnessing 1 vessel heading to FE via the Cape of Good Hope:
Clipper Saturn, ex-Enterprise, is heading to Ocoa Bay Anchorage, ETA 7-Dec. She is expected to discharge her cargo via STS with Bw Gemini.
Bahia Blanca’s exporting activity is increasing:
- Petredec’s Ronald N is heading to discharge her cargo at Chorillo, ETA 12-Dec.
- Petredec’s Cambridge discharged her Bahia-Blanca cargo via STS at Ecuador and is heading for a second load, ETA 11-Dec.
Statoil’s Captain Nicholas Ml
loaded part of her cargo at Hammerfest and is signalling for Kaarstoe to complete her load, ETA 8-Dec.
, ex-Enterprise, is heading to discharge her cargo at Dortyol, ETA 20-Dec.
Winter in Europe has already arrived, with low forecasted temperatures, which are tightening the market with consecutive shipments, especially to Morocco where there are not many alternatives for heating but the LPG. The following vessels are heading to discharge their cargo at Morocco on mid-December:
- Astomos’ Ns Frontier, ex-Nederland, is signalling for Mohammedia, ETA 14-Dec.
- Trafigura’s Kortrijk, ex-Targa, is heading to discharge her cargo at Jorf Lasfar, ETA 14-Dec.
Geogas’ Jia Yuan, ex-Marcus Hook, is heading at Botany, ETA 10-Dec.
Astomos’ Nadeshiko Gas updated her AIS signal and is now heading to load at NWS, ETA 11-Dec.
Pertamina’s Bw Brage is signalling to load at Bontang, ETA 8-Dec.
Lagos was until recently the major terminal for gas of Nigeria. Puma Energy’s Calabar LPG Storage Terminal started its operations late Summer 2017 by receiving its first cargoes by Mayfair and Epic Shikoku. The terminal has a capacity of over 3000 tonnes and is part of Nigeria’s plans to grow its LPG market by 12,000 tonnes in 2017.
Above: Nigerian LPG Import Installations
Sonangol’s Bw Empress, a Floating Storage at Luanda Anchorage, reloaded her cargo at Soyo.
IOC’s Copernicus, performed a STS with Kikyo at Gale Anchorage. Both vessels are heading to discharge their cargoes at East Coast India.
Shell’s vessels Pacific Hong Kong and Lubara performed a STS at Male Anchorage. The latter, which is acting as a breaking bulk at the anchorage, was reloaded and is continuing its operations.
November US LPG Exports hit 1 Mbpd
Total LPG exports out of United States reached 1 million barrels per day in November, a MoM increase of 93 kbd. The 1 Mbpd floor is not new for US as the total exports averaged 1 million barrels per day (bpd) in three more months (Feb, Apr and Sep) this year, according to Kpler data.
Freeport boosting the total US exports
The total US LPG exports are being significantly boosted by the cargoes out of Freeport LPG export terminal. Starting from November 2016 (month of the first cargo out of Phillips 66’s terminal), the US exports increased by an average 108 kbd per month of LPG originated from Freeport terminal. In addition, Enterprise is having a key role in total US exports, with a strong monthly average exports of 385 kbd in 2017. During November, Enterprise shipped 409 kbd of LPG, reaching its April export levels.
Originally Released on 30 November 2017
This week we are not witnessing any vessels that is heading to FE via the Cape of Good Hope
With 3 VLGCs heading and 1 VLGC currently fixed, ex-US, November exports to Europe are on the rise again reaching 222 Kt , similar to June figures.
was fixed by Statoil to deliver a cargo out of Freeport to Europe. She is expected at USGC on 8-Dec
Geogas’ Karoline N
, ex-Marcus Hook, is singalling for Lavera, ETA 6-Dec.
Repsol’s Crystal Marine
, ex-Freeport, is signalling for Flushing, ETA 12-Dec.
, ex-Enterprise, is signalling for Flushing, ETA 11-Dec.
SK Gas’ G. Commander, ex-Al Ruwais, is heading to discharge her cargo at Kalbut, ETA 4-Dec.
Petredec’s Yamabuki, ex-Nederland, is heading to discharge at Teluk Semangka, ETA 9-Dec.
Astomos’ Gas Diana, ex-Bayu Undan, is expected to discharge her cargo at Chita, ETA 3-Dec.
Chevron’s Hellas Glory, is expected to load at Escravos, ETA 15-Dec
Growth of Ethane Trade
Similar with 2016, the ethane trade continued its substantial growth during 2017.
Above: World Map of Ethane Seaborne Trade
On the export side, the same installations are able to export ethane:
- Enterprise’s Morgans Point terminal, operating since Sept-16.
- Sunoco’s Marcus Hook terminal, ethane operation since March-17.
- Statoil’s Kaarstoe terminal, operating since 2000.
On the demand side, existing and new crackers in operation received ethane shipments:
New Trade Route
Braskem’s importation of Ethane into Aratu
from the USG, is now on track to start taking deliveries. The 380 $ million project involved converting their Camacari cracker to utilise Ethane as 15% of its feedstock instead of 100% Naphtha.
Shipping will be provided by Navigator Gas Transport, who have the Navigator Orion
(22,000 cbm) currently discharging the first cargo in Aratu. In addition, Navigator Eclipse
(37,000 cbm) loaded the second parcel in Houston and is currently heading to Aratu.
In 2017, the trade flows of ethane expanded by 2.5 times the size of the 2016 total seaborne exports (2912 Kt YTD for 2017, compared to 1152 total exports for 2016).
*numbers of Jan, Feb & March for Kaarstoe have been estimated
Since the beginning of its operations in September 2016, Morgans Point have managed to become the leading ethane seaborne exporting installation. Kpler data reveal that in November, Morgans point exports represents a 75% of the total ethane seaborne exports.
The NWE crackers expanded their imports of ethane in 2017, receiving a 60% of total seaborne ethane cargoes, while Dahej progressively rose as the top ethane seaborne importing installation (receiving on average 2 cargoes of 48 Kt per month).
Growth of Ethane Fleet
The Ethane trade has grown considerably over the past year, with 22 vessels lifting ethane cargoes compared to 9 vessels in 2016.
INEOS owns the biggest fleet of dedicated ethane vessels (8 ships in the range of 27,500-32,000 cbm), while Indian Petrochemical Reliance is utilizing economies of scale by transferring bigger ethane volumes with it fleet of 6 VLECs (more than 85 cbm). Navigator Gas just entered the ethane waterborne market with the Navigator Eclipse and Navigator Orion starting trade between US-Brazil.
Above: Vessels that lifted ethan cargoes since Jan-16
Similar to 2016, the ethane seaborne market is expected to grow considerably. New contracts are already reported that will open new trade routes to Asia:
- INEOS entered in a long-term supply agreement with SP Chemicals in China to deliver Ethane from the US to Taixing. In order to do so, INEOS have contracted with Evergas to build the largest gas carrier, a 95,000 cbm Ethane Capacity (built in China with delivery in 2019). On its side, SP Chemicals will commission a gas cracker plant with a 2019 start-up to produce 650,000mts Ethylene per year.
- American Ethane Co signed a $26 billion agreement with the Nanshan Group in China to supply 2.6 million tons of Ethane from a new export terminal in the USG. The US Ethane will feed their planned 2 million ton per year Ethylene cracker.
Originally Released on 23 November 2017
This week we are witnessing 3 vessels that are heading to FE via the Cape of Good Hope:
- Kunlun Shipping’s Chaparral, ex-Nederland, signalling for SGP Area, ETA 25-Dec.
- Shell’s Oriental King, ex-Nederland, signalling for SGP Area to discharge her maiden cargo, ETA 20-Dec.
- Avance Gas’ Monsoon, ex-Targa , is signalling for Tanjong Uban, ETA 1-Jan.
Above: Vessels heading to FE through COGH, instead of Panama Canal
RIL’s Ethane Emerald
loaded a full Ethane Cargo from Morgans Point and is now Dahej, ETA 2H-Dec.
Statoil’s Clipper Star
, ex-Mongstad, discharged part of her cargo at Cheesapeake and is now signalling for Tampa, ETA 25-Nov.
Morocco’s LPG demand shows early signs of increase in November, as winter approaches to the region. The following MGC and LGC vessels delivered cargo to Morocco on the first half of November:
- Petredec’s Balearic Gas, ex-Fawley, discharged at Jorf Lasfar on 3-Nov.
- Sonatrach’s Rhourd Enouss, ex-Bethioua, discharged at Mohammedia on 5-Nov.
- Essex, ex-Braefoot Bay Shell, discharged part of her cargo at Tanger on 12-Nov and is currently waiting in front of Jorf Lasfar to discharge the rest of her cargo.
The following LGC vessel is expected at Morocco on the second half of November:
- Petredec’s George N, ex-Targa, is heading to discharge at Mohammedia, ETA 22-Nov.
Shell’s Aisling, ex-Nederland, is currently discharging her maiden cargo at Kalbut, Indonesia.
Petredec’s Hellas Fos, ex-Sitra and Al Ruwais, is signalling for Teluk Semangka, ETA 2-Dec.
Originally signalling for Male Anchorage, Shell’s Sinndar updated her AIS signal and is now heading to discharge her cargo at Kalbut, ETA 3-Dec.
After 6 month of Floating Storage at Male Anchorage, Shell’s Lubara left her position and is heading towards Sri Lanka.
ExxonMobil’s Al Wuki loaded her cargo at Oso. Her exact discharge destination is yet to be confirmed.
BP’s Pacific Binzhou, loaded her cargo at Soyo and will head to discharge at FE. Her exact discharge destination is yet to be confirmed.
Eletson’s Symi, currently loading at N’Kossa, is signalling for Lavera, ETA 8-Dec.
P66’s Clipper Freeport discharged her cargo at Yokkaichi and is now signalling for Westernport, ETA 5-Dec.
Astomos’ Gas Diana is signalling for Bayu Undan, 23-Nov.
Argentina Breaks from a Decade of Seasonality Restriction
The El Orejano block is part of the Vaca Muerta shale gas deposit in Argentina’s Neuquén province and accounts for some 300 Tcf of gas resources. Argentina’s state oil company YPF signed an agreement to develop the block with Dow Argentina, the local unit of US group Dow Chemical. In December 2016, the field has reached its production level after two years of development, significantly improving the country’s shale and gas production.
For the last decade, the Argentinean government restricted gas supplies during the region’s winter period of June through August, shifting from industrial availability to consumption for heating and other residential uses.
Kpler data reveal that after years of LPG supply availability being seasonally restricted for petrochemical producers and other industrial users, 77Kt of LPG exports were tracked during the June-August period.
The first year without LPG curtailments is an early indication of Argentina’s energy recovery.
Where is the Argentinean LPG headed?The port of Bahia Blanca is the most important center of the Argentinean LPG exports. Kpler data reveal that S.America is the main destination of the LPG, where Brazil is the dominant buyer, with 345Kt delivered for 2017, Ecuador has taken 59Kt, followed by Dominican Republic and Puerto Rico with 34Kt and 33Kt respectively.
The Dominant LPG Exporter of S.America
S.American countries have exported 928Kt of LPG in 2017, mid-November figures. Kper data suggest that Argentina is the main LPG exporter of the region, accounting for 58% of regional exports or 536Kt, followed by Venezuela with a 22% and Chile with 7%.
Originally Released on 16 November 2017
This week no vessels are expected to head to FE via Cape of Good Hope.
Geogas’ JS Ineos Intrepid
, ex-Kaarsto, discharged her cargo at Tallaboa, Caribs.
Busy Line-for M.E. as the Gulf producers try to take advantage of the higher seasonal demand of FE in the following months. Six VLGCs are expected to lift a cargo out of Persian Gulf (PG) during the 2H of November:
Captain Nicholas ML
, ex-Kaarstoe, discharged her cargo at Aygas Izmit. She is being fixed again to load a cargo out of N.Sea, probably at Kaarstoe (charterer Statoil).
, ex-Marcus Hook, is signalling for Gibraltar, ETA 23-Nov.
Petredec’s George N
, ex-Targa, is heading to deliver her cargo at Mohammedia, ETA 21-Nov.
Petredec’s Bw Malacca
, ex- Enterprise and Jose is heading to discharge the rest of her cargo at Teluk Semangka, ETA 21-Nov. This is the second cargo out of US to Indonesia in November.
Astomos’ Legend Prestige, ex-Westernport, is heading to discharge at Chiba area, ETA 25-Nov.
Petredec’s vessels interesting activity: Clipper Quito performed a STS with Morston offshore Chorrillo. The first crossed the Panama Canal and is heading to USGC, while the latter is expected to discharge her cargo at Chorrillo.
Shell’s Sea Bird is currently discharging part of her cargo at Male Anchorage via STS with Shell’s Lubara.
Geogas’ Karoline N is heading to Ocoa Bay Anchorage to discharge her cargo via STS with Bw Gemini, ETA 18-Nov.
Originally signalling for Panama Canal, Shell’s Comet changed her destination and is now crossing the Atlantic Ocean. Her exact destination is yet to be confirmed.
Originally fixed by Shell to deliver a cargo out of Persian Gulf, Pampero deviated and is now signalling for USGC, ETA 12-Dec
Iraq boosting its LPG Exports
Iraq exported its first LPG cargoes last July, after becoming self-sufficient in LPG with a production at 5,000 mt/d. Since then it has been seeking to become a regular global supplier.
Kpler data reveal that Iraq has made a total of 63 shipments of LPG so far this year, with a total of 127 kt of LPG. During the summer months, exports were significantly boosted reaching 30kt in September.
Improved infrastructures the main driver behind the boost
The upgrade at the Khor al-Zubair port has been the main driver of improved Iraq’s flexibility for importing and exporting products.
Looking at the Kpler data for monthly exports -breakdown by origin installations- 25 LPG cargoes were lifted from the new loading platforms at Khor al-Zubair port by Basra Gas Co., a joint venture of Shell, Mitsubishi and the oil ministry’s South Gas Co. The rest were lifted from Umm Qasr installation.
The Iraqi Government hopes to turn the port of Khor Al-Zubair into a major commercial center for the Persian Gulf. To achieve this, the port was further developed by modernizing its berths, building storage tanks and a pipeline network for oil derivatives. In addition, the channel was further dredged to increase its depth to 12 meters from 7, thus allowing vessels of up to 40kt to reach the port.
Where is the Iraqi LPG headed?
All Iraqi trades were done with SGC vessels that have loaded their cargo either at Khor Al-Zubair or Umm Qasr. Kpler data reveal that Pakistan is almost the only buyer of the LPG, while twice a cargo had been delivered to Yemen.
Looking at the Persian Gulf monthly exports to Pakistan, Iraq’s share has grown considerably over the past few months. Currently. the volumes exported are in competition with Iranian exports.
Originally Released on 9 November 2017
This week, we are witnessing 3 VLGCs heading to FE via Cape of Good Hope:
- Geogas’ Jia Yuan, ex-Marcus Hook, signalling for Chita, ETA 12-Dec.
- Petredec’s Yamabuki , ex-Nederland, signalling for Durban, ETA 24-Nov.
- Shell’s Pacific Hong Kong, ex-Nederland, signalling for SGP Area, ETA 8-Dec.
Above: vessels heading to FE through COGH, instead of Panama Canal
has finally finished her load, ex- Ferndale, and is now signalling for South Korea, ETA 16-Nov.
, ex-Pajaritos, is heading to discharge at Mohammedia, ETA 9-Nov.
Itochu’s Gas Zenith
, ex-Enterprise, is crossing the Panama Canal to deliver her maiden cargo to FE. She is expected at FE on 23-Dec.
Petredec’s Bw Malacca
, ex-Jose and Enterprise is currently discharging part of her cargo at Petredec Mauritius terminal.
SK Gas’ G. Forever
, ex-Yanbu, is heading to discharge at Kalbut, ETA 14-Nov.
TSW’s Gas Taurus
, ex-Al Ruwais, is expected to discharge her cargo at Indonesia, ETA 17-Nov.
, ex Kaarsto, completed a partial discharge in Aygaz Izmit and is now heading to discharge the rest of her cargo at Dortyol, ETA 7-Nov.
BP’s Clermont, ex-NWS, is heading to discharge her cargo at Taiwan, ETA 14-Nov.
Pacific Binzhou was fixed by BP to deliver a cargo out of Soyo. She is expected to load at Soyo on 21-Nov.
Cresques was fixed by Geogas to deliver a cargo out of Bonny, loading ETA 26-Nov.
Aquamarine Progress was fixed by Sahara to deliver a cargo out of Escravos, loading ETA 21-Nov.
Geogas’ Clipper Moon, ex-Enterprise, is expected to discharge her cargo again via STS with Bw Gemini at Ocoa Bay Anchorage. ETA 10-Nov.
Shell’s Sinndar, ex-Nederland, is signalling for Male anchorage, ETA 28-Nov. She is expected to discharge part of her cargo again via STS with Lubara.
Newbuild Mont Fort left the Korean Shipyard and is now heading to Panama Canal. She is relet to Gunvor for a 10 year-TC.
Originally signalling for Panama Canal, Flopec’s Clipper Victory changed her destination and is now heading to Terneuzen, ETA 15-Nov.
Originally signalling for Fujairah, BW’s Bw Loyalty updated her AIS signal and is now heading to Nederland US, ETA 7-Dec.
Increase of Japanese LPG imports
In September, strong global Oil prices boosted the LPG prices and the naphtha crack spread had gradually widened, therefore making CFR Japan Propane costlier than naphtha. As producers in Europe and Asia tend to switch feedstocks based on cracking margins, Japanese LPG imports experienced a drop of 40% MoM in September to 451 Kt, the lowest value in 2017, based on Kpler data. This figure proves that LPG continued to yield less favourable cracking economics relative to naphtha.
As winter approaches, the slowdown in September questioned the efficiency of the Asian inventories to meet heating and cooking demand ahead. However, the strong figure of 986 Kt in October is expected to eliminate much of the shortfall in Japan and Asian Inventories.
Kpler data reveal that the total demand in Far East steadily increased from August onward. In October, demand was higher by 425 Kt m/m, at 3885 Kt, suggesting a trend towards stronger demand relative to the first half of 2017.
Looking at the monthly imports of the 3 top Far East Importers, China helped sustaining the FE imports to the current levels as Japanese and S.Korean demand dropped.
Forward looking, Indonesia and Iran LPG talks for 2018
Indonesia’s Pertamina will start official discussions with NIOC this week for the renewal of their term LPG import contract for 2018 supplies. The original contract consisted of a 600,000 mt of LPG to be delivered over 2016-2017 in 14 cargoes.
Kpler data reveal that since the delivery of the first 44,000 mt evenly split propane/butane parcel in Oct-2016, there have been 12 cargo shipments. The current level of Iranian exports to Indonesia are approximately 550,000 mt, a figure close to the original agreement. (November import numbers are subject to change as Kpler is closely monitoring the daily market).
Originally Released on 2 November 2017
This week, we are witnessing 3 VLGCs heading to FE via Cape of Good Hope:
- Vitol’s Bw Pine is expected to FE by 14-Dec.
- Shell’s Sinndar early track is indicating a voyage via COGH.
- Petredec’s Spread Eagle diverted towards the long route via COGH.
On the other hand, 6 VLGC’s are expected to pass the Cape of Good Hope on their way to USGC:
- Avance Gas’ Chinook, current itinerary Malacca Strait, signalling for Freeport, ETA 10-Dec.
- Avance Gas’ Breeze, signalling for Houston, ETA 16-Dec.
- Avance Gas’ Iris Glory, current itinerary Malacca Strait, signalling for Houston, ETA 6-Dec.
- Astomos’ Ns Frontier signalling for Nederland, ETA 26-Nov.
- Shell’s Shaamit signalling for Nederland, ETA 30-Nov.
- Engie’s Mistral is expected at Houston by 3-Dec.
Astomos’ Crystal River
completed her maiden voyage from Nederland to Japan and is now heading back to USGC for her second load, ETA 25-Nov.
, ex-Pajaritos, is heading to discharge at Mohammedia, ETA 9-Nov.
was fixed by Petrobras to deliver a US cargo to Flushing. She is expected at USGC by 24-Nov.
, ex-Nederland, is heading to discharge at Kalbut, ETA 3-Nov.
Solvang’s Clipper Saturn
, ex- Marcus Hook is heading to discharge at Repsol Butano, ETA 3-Nov.
BW’s BW Sakura, ex-Ras Tanura, is signalling for Kalbut, ETA 9-Nov.
Astomos’ Gas Diana loaded part of her cargo from Al Ruwais and is now completing her load at Sitra.
Shell’s Sansovino, ex-Kaarstoe, is currently discharging at Aygaz Izmit, Turkey.
Bonython & Westernport are exporting their first lpg cargoes to Africa. Geogas’ Bw Messina is on her way to EAF, probably for a partial discharge at Petredec Mauritius first and the rest via STS at Beira Anchorage, ex-Bonython & Westernport.
Astomos’ Legend Prestige is signalling to load at Westernport, ETA 8-Nov.
Chevron’s Hellas Glory, ex-Escravos discharged part of her cargo at Petredec Mauritius and is now signalling for Dongguan, ETA 14-Nov.
Shell’s Shahrastani discharged part of her cargo via STS with Shell’s Lubara at Male Anchorage. The latter is acting as a Floating Storage at the anchorage .
Geogas’ Karoline N discharged her cargo via STS with BW’s Bw Gemini at Ocoa Bay Anchorage. The latter is acting as a Floating Storage at Ocoa Bay Anchorage..
Middle Eastern LPG exports to FE lower in October
Kpler data reveal a decrease of Middle Eastern LPG supplies to Far East with exports falling m/m by 107 Kt. As winter approaches, demand in Asia, especially in China, builds up and the tight LPG supply from M.E. is pushing importers to look at the other side of the Atlantic to secure their inventories. That said, US has increased its share of exports to Far East by 8% over the last two months, or an increase of 407 Kt m/m between September and October.
Middle Eastern Countries with Supply Disruptions
The drop of ME exports comes mainly from two countries, namely the UAE and Iran. In Iran, the supply disruptions are linked to the unexpected outages of the South Pars field, which will probably have an impact on exports until the end of the year. In UAE, the new 0.5 Mpty PDH plant of Takreer – which is in the stage of trial – is causing a shift of part of the country’s LPG exports to domestic use.