For the First Quarter of 2022

Asia

On March 28, average LPG prices in the Shandong market were 6,230 RMB/MT. Compared to March 1, LPG prices fell by 2.02%. On the 29th, the domestic LPG market remained weak overall, with different regions declining to varying degrees. Shandong's civil gas market dropped by 50-100 RMB/MT. The price of international crude oil fell sharply  and the market mood was negative. Furthermore, due to the impact of the epidemic, shipments in many regions were disrupted. Manufacturers primarily shipped at a loss.

Europe

Energy prices were high in Europe during the first quarter of 2022 as a result of shortage in the region as conflicts rose between Russia and EU leading to pipeline flows being cut off or reduced drastically due to retaliations and sanctions.

North America

Benchmark propane prices in the US fell to 1.30 USD/gal by the end of January 2022. Energy prices rose in February 2022 and as a consequence propane prices also increased. Average residential propane prices reached close to 3.00 USD/gal in the US in March 2022. Crude oil prices surged during the Ukraine-Russia war which in turn increased the propane prices.

Latin America

In March, Petrobras, Brazil's state-run oil company, announced to increase LPG prices to 4.48 BRL/kg, increasing the prices by almost 16%. The price rise came after a hike in international energy prices as a result of the Ukraine-Russia war.

For the Fourth Quarter of 2021

Asia

After underperforming for practically the entire third quarter of FY21, the LPG demand resurfaced in Q4 of FY21. Because the premium to naphtha had been dropping since October, the arbitrage for US propane imports reopened for a brief period in October before tapering off due to massive demand from Asia as a result of an energy crisis that began towards the end of October. Propane's advantage against butane had faded by the end of December, while demand for Asian butane for the US gasoline blending sector grew during the winter.

By the conclusion of Q4 of FY21, demand in India had reached a halt, as contract LPG prices had fallen by 17% from their October high of 970 USD/MT. Despite the fact that propane dehydrogenation capacity had been rising every year in Asia, naphtha remained the favored feedstock for the quarter ending December, since the LPG premium to naphtha did not change significantly. With provincial elections occurring in Q1 of FY22, the consumption in India is projected to rise, as national governments frequently offer LPG subsidies for household use prior to elections in order to lure voters.

North America

Throughout the second half of FY21, US exports to Asia were more than 100 % higher than exports to Europe. On a FOB Texas basis, propane export prices were around 1.5 USD/gal, which was a seven-year high. Due to sharp increases in natural gas prices, many European industries resorted to buying LPG stock on the open market in December, increasing exports to both Asia and Europe from October levels. By the end of December, the FOB Texas discount to CFR Far East Asia had decreased to around 160 USD/MT.

Because oil and natural gas prices are expected to rise further in January, many refineries in Asia are likely to pick propane over naphtha as their preferred cracker feed. Prices are likely to climb further in Q1 of FY22 as the European market tightens, owing to increased LPG imports into European countries due to winter demand. The US-NWE arbitrage will most likely reopen in the first or second week of January.

Europe

European LPG imports from the United States reached a half-yearly high of 0.42 MMT in November of Q4, and the boom in imports only accelerated in December, when they were nearly 240 % higher than December FY20 levels. At the start of Q4, US export prices were at record highs, making arbitrage margins untenable for European traders. Prices, on the other hand, dropped by December and were likely to drive European LPG demand in the first quarter of FY22. Winter demand is predicted to be lower than in January of FY21. However, LPG prices are predicted to rise as a result of its increased demand as a heating fuel substitute for natural gas as a result of a dramatic spike in natural gas costs.

For First, Second and Third Quarters of 2021

Asia

LPG supplies in the Asia Pacific region were balanced in the first quarter of 2021, owing to the launch of new olefin facilities in China, where LPG accounts for 77 % of demand, and China's PDH (propane - dehydrogenation) plants running at full capacity. Whereas, temporary operational halts due to the Chinese New Year vacations, as well as output curbs by OPEC members, revealed some supply constraints. As the northeast Asian region entered the winter season, demand increased in those times. Saudi Aramco, a major supplier to the Middle East, raised its March LPG ratio (50 % Propane – 50 % Butane) to 610 USD/MT and (70 % Propane – 30 % Butane) to 616 USD/MT, respectively, from January settlements, representing increases of 70 USD/MT and 48 USD/MT.

Europe

In the first quarter of 2021, LPG supplies in the region remained tight as imports from the United States fell due to a drop in domestic demand in the Gulf region of the United States. However, during the second and third quarters of 2021, the market in Europe had a consistent upward trend in pricing. The demand was primarily concentrated among domestic consumers, owing to increased demand from industrial and household applications, as well as electricity generation applications. Following the vaccination roll-out, the market had a significant economic upswing, which boosted overall LPG use. After significant delays in Asian cargoes, supplies were plentiful as the distribution was balanced from the Middle East. In the second quarter of 2021, LPG prices in Germany averaged 210.6 USD/MT, with overall pricing exhibiting a modest fall during the quarter.

North America

The North American market continued to see upward trend in both the second and the third quarters after observing a marginal decline during the first quarter. Brent Crude Oil's steady rise kept the offers much higher. Brent crude oil prices averaged 73 USD/barrel in June, an increase of 5 USD/barrel above May's prices. The demand for domestic applications remained stable, but recovering industrial infrastructure in the US Gulf region boosted industrial off takes. LPG prices in the US market improved steadily during the period, with the quarterly LPG prices averaging 221 USD/MT in the second quarter of 2021, an increase of 16 USD/MT

For the Year 2020

Asia

In 2020, the oil and gas sector industry was severely hit by Covid pandemic as most of industries were closed, however LPG, due to its more broad demand profile, was not impacted in the same way. With the exception of Japan, increased import requirements from most of Asia-Pacific's major demand centers drove this resilience. LPG imports to China, India, Indonesia, and South Korea increased by 3% to 60.1 MMT.A main driver of demand increase was the rise of China's domestic petrochemical sector, which saw new propane dehydrogenation (PDH) and ethylene crackers come online. In China, the industrial sector's consumption fell by 6.7% year on year. The first estimates for May showed a modest year-over-year demand rise of around 1%.

Europe

European petrochemicals, on the other hand, saw a significant reduction in LPG demand in 2020, with consumption falling to just under 13 MMT from about 14.5 MMT in 2019. The combined effects of mild temperatures, high wind generation, and Covid19- induced statewide lockdowns lowered natural gas use, which was down 7% yoy in the first five months of the year. Natural gas consumption in various European countries fell sharply as a result of statewide lockdowns, falling by 11% from the start of the lockdowns and the end of September, corresponding to a 10 bcm decline in absolute terms. Lower demand from the industrial and power generation sectors accounted for the majority of the decrease.

North America

Between January and May 2020, US natural gas consumption fell by 2.8% year on year. Despite moderate temperatures throughout the first quarter and the adoption of lockdown measures in most states, this was a rather minor reduction. Despite the significant impact of lockdowns on economic activity, LPG demand remained reasonably stable, increasing by 0.5% between mid-March and the end of May compared to the same period last year. Consumption in the industrial sector fell by 3.6% YOY between mid-March and mid-May, compared to the same period last year. The electricity generation sector, which increased by 3.4% year over year over the same period, and some gains in residential and commercial use countered this drop (up 1.5%). The main reason for LPG consumption to remain stable was because of the changeover from coal to gas in power generation in the United States.

Procurement Resource Database

Please Login or
Subscribe to explore
our dashboard.

Procurement Resource provides latest prices of LPG. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.

Chart Description:

Procurement Resource provides prices of LPG for several regions around the globe, which are as follows:

  • North America
  • South America
  • Europe
  • Asia Pacific
  • Middle East 
  • Africa

About LPG:

Liquefied petroleum gas or better known as LPG is a mixture of hydrocarbon gases. It is flammable in nature. LPG is most widely used for household purposes, for example in cooking, or as a fuel for heating. It is replacing CFCs or chlorofluorocarbons rapidly, as it is less harmful for environment and has a lower impact on ozone layer when compared to CFCs. Its primary constituents are propane and butane, while natural gas contains lighter methane and ethane. Commercially, the product is mainly derived from fossil fuels.

Synonyms

  • Liquefied petroleum gas 
  • Liquid petroleum gas (LP gas)

Industrial Uses:

  • Cooking
  • Rural heating
  • Internal combustion engines and motor fuel
  • Aerosol propellants and refrigerants
  • Gasoline
  • Farming
  • Power generation

Production Processes:

  • Production of LPG from Petroleum (Crude Oil) via Refining; or via Processing of Natural Gas

LPG can be obtained from natural gas via its processing. LPG is most widely recovered during the extraction of natural gas, which is found beneath the earth's surface.

Supplier Database:

  • Gazprom PAO 
  • Royal Dutch Shell Plc
  • Exxon Mobil Corporation
  • Total SA
  • BP Plc

Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs. Procurement Resource tracks LPG prices for more than 150 countries across the globe.

Methodology:

The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).

Procurement Resource also provides the detailed production cost analysis of LPG See more

NEWSLETTER

Get latest News About Procurement Resource
Subscribe for news