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Middle East

Focus on a major LPG producer – Saudi Arabia – Week 31 2025

Aug 04, 2025

The most recent meeting of eight OPEC+ countries took place yesterday on the 3rd of August, including Saudi Arabia. For LPG, this is significant as Saudi Arabia currently produces a large volume from associated gas and hence any changes to crude oil production will directly impact the level of LPG available to the domestic market and the international market. It was announced that Saudi Arabia will target a crude oil production of 9.98 million barrels or crude oil per day in September, signifying the complete scale back of the 1 million barrels per day voluntary production cuts announced in 2023 [...]

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Petrochemicals

US ethylene production & ethane consumption up in first half of 2025 – Week 30 2025

Jul 28, 2025

Although final figures are not yet out, it appears that US ethylene capacity utilisation has increased notably in the first half of 2025, and as a result ethane consumption is up by 3.5-4% compared to first half 2024. US ethylene production, NGLS estimates, has increased from around 18.8 mm t in first half 2024 to approaching 19.2 mm t in first half 2025. Although this is not a significant gain, it represents a move in the right direction for US producers [...]

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Shipping

VLGC freight market outlook: volatility driven by geopolitics, fundamentals set to strengthen – Week 29 2025

Jul 21, 2025

VLGC freight markets were marked by significant volatility in the first half of 2025, with sharp fluctuations emerging from March onward, primarily due to geopolitical disruptions. This occurred despite only a moderate year-on-year increase in LPG export volumes, highlighting the outsized impact of risk premiums and logistical dislocations [...]

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Petrochemicals

Cracker closures reshape Europe’s LPG cracking potential – Week 28 2025

Jul 14, 2025

The spate of ethylene plant closure announcements in Europe and current low cracker operating rates raises the question of what Europe’s future LPG cracking potential will be [...]

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India

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The start-up of the 2,805 km long LPG pipeline in India from West Coast to the Northeast of India – Week 27 2025

Jul 07, 2025

A new pipeline capable of transporting around 8.25 mm t of LPG has recently started commissioning in India and is expected to be fully operational later in 2025. The 2,800 kilometer long pipeline will run from Kandla on the west coast of India to Gorakhpur in the north. The pipeline is reported to directly link with 22 LPG bottling plants; 3 in Gujarat, 6 in Madhya Pradesh and 13 in Uttar Pradesh [...]

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Ethane

Navigating US-China ethane licensing challenges – Week 26 2025

Jun 30, 2025

After the announcement in May that, effective 23 May 2025, U.S. exporters would need a license to ship ethane to China, the U.S. Department of Commerce notified exporters Enterprise Products and Energy Transfer last week that they may load ethane onto vessels bound for China but cannot discharge the cargo there without authorization. As of Friday, 27 June, six VLECs are waiting to load in the U.S. Gulf, five of which previously called in China. Additionally, six ballasting VLECs are currently heading toward the Panama Canal [...]

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Middle East

Middle East unrest deepens: Implications beyond Iranian supply disruptions – Week 25 2025

Jun 23, 2025

What would be the consequences of a Strait of Hormuz closure for LPG and other Middle Eastern exporters? In this week’s report, NGLStrategy analyzes the potential impact on two of the region’s major exporters: Saudi Arabia & Qatar [...]

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Middle East

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Unrest in the Middle East sparks market uncertainty – Week 24 2025

Jun 16, 2025

Although the ultimate impact of recent developments in the Middle East remains uncertain, NGLStrategy evaluates the potential ramifications for the LPG market should tensions persist or escalate. Several scenarios could unfold, including a complete loss of Iranian supply, elevated crude oil prices, and disruptions to shipping routes and market flows. These scenarios do not yet factor in the potential for broader escalation involving other regional or global actors [...]

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Production

How much can US NGL production be affected by associated vs non-associated gas output? – Week 23 2025

Jun 09, 2025

Ongoing market uncertainty over global crude oil versus natural gas demand is creating complex dynamics for U.S. NGL production, as the source of natural gas plays a crucial role in determining NGL output levels. A decline in crude oil production would result in reduced associated gas volumes, which would likely be offset by increased non-associated gas production—yet the two are not equivalent in terms of NGL yield [...]

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Ethane

Another blow to US-China trade announced – Week 22 2025

Jun 02, 2025

Already this year, we have seen a turbulent market in terms of market adjustments to geopolitical announcements. Last week, the volatility continued with the US government announcing further restrictions on companies exporting products to China. It was announced that companies could be ordered to stop shipping good to China without a license with licenses revoked for some companies already. Included in this discussion is ethane and butane as they are seen to pose a risk for military end-use [...]

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Production

Implications of rising OPEC+ output on LPG export market – Week 21 2025

May 26, 2025

With the prospect of higher crude oil production from OPEC+ in July—building on elevated levels already seen in May and June 2025 compared to previous commitments—NGLStrategy examines the potential implications for the global LPG market [...]

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China

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Overview of the impact of 10% import tariffs for US to China volume – Week 20 2025

May 19, 2025

Further tariff announcements last week between the US and China provided some optimism in the LPG market. A 90-day reduction in tariffs was agreed reducing the import tariff for LPG from 125% to 10% for volume from the US to China [...]

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