Middle East
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 [...]
Read MorePetrochemicals
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 [...]
Read MoreShipping
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 [...]
Read MorePetrochemicals
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 [...]
Read MoreIndia
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 [...]
Read MoreEthane
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 [...]
Read MoreMiddle East
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 [...]
Read MoreMiddle East
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 [...]
Read MoreProduction
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 [...]
Read MoreEthane
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 [...]
Read MoreProduction
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 [...]
Read MoreChina
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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