EU LPG Imports on the Rise

LPG imports from the EU have been on the rise so far in 2024, reversing last year’s downward trend, although not entirely. In its latest weekly report, shipbroker Banchero Costa said that “global LPG (liquified petroleum gas) trade has been steadily recovering in the past three years, following a very disappointing 2021. Total seaborne exports of LPG in JanDec 2023 increased by +3.6% y-o-y to 144.4 mln tonnes, according to vessel tracking data from Refinitiv. In the first 8 months of 2024, global export volumes increased by +5.2% y-o-y to 99.3 mln t, compared to 94.4 mln t in the same period of last year. In Jan-Aug 2024, LPG exports from the USA increased a very healthy +13.4% y-o-y to 43.9 mln tonnes. LPG exports from the GCC declined by -3.4% y-o-y in 2023, to 26.6 mln tonnes, including 9.8 mln t from the UAE, 6.7 mln t from Qatar, 4.9 mln t from Saudi Arabia, 3.5 mln t from Kuwait, 1.5 mln t from Oman. Shipments from the GCC accounted for 27% of global exports. Exports from Algeria also declined by -8.7% y-o-y in Jan-Aug 2024 to 4.0 mln t, whilst from Iran increased by +29.7% y-o-y to 4.0 mln t”.

According to Banchero Costa, “in terms of imports, the top destination for LPG in Jan-Aug 2024 was Mainland China, accounting for 24% of global imports. Imports to China increased by +13.0% y-o-y in Jan-Aug 2024 to 23.6 mln tonnes. Imports to the EU increased by +9.3% y-o-y in Jan-Aug 2024 to 14.0 mln t. Volumes into India increased by +5.8% y-o-y to 12.9 mln tonnes. Imports to Japan declined by -4.5% y-o-y to 6.5 mln tonnes in the same period. Imports to South Korea in Jan-Aug 2024 increased by +8.0% y-o-y to 5.5 mln tonnes. Volumes to Indonesia declined by -4.2% y-o-y to 4.3 mln tonnes. To Turkey there was -6.8% y-o-y decline in Jan-Aug 2024 to 2.5 mln tonnes”.

“Let’s now focus on the European Union, which is now the second largest importer of LPG in the world after China, accounting for 14.1% of global volumes in 2024. As already mentioned above, LPG imports into the EU in Jan-Aug 2024 rebounded by +9.3% y-o-y to 14.0 mln tonnes. This however did not fully reverse the -14.3% y-o-y decline in the same period of 2023. In terms of individual countries, this included 2.6 mln tonnes imported by the Netherlands, 2.6 mln t by Belgium, 2.0 mln t by France, 1.3 mln t by Spain, 1.2 mln t by Sweden, 1.2 mln t by Italy, 0.7 mln by Poland. Top LPG discharging ports in the European Union in Jan-Aug 2024 were: Antwerp (2.6 mln t in Jan-Aug 2024), Terneuzen (1.5 mln t), Lavera (1.1 mln t), Tarragona (0.9 mln t), Stenungsund (0.8 mln t), Rotterdam (0.7 mln t), Porvoo (0.5 mln t), Naples (0.5 mln t), Vissingen (0.4 mln t), Gdansk (0.3 mln t). 20.7% of volumes imported by the EU in Jan-Aug 2024 were loaded on VLGCs (70+ cu.m.), with 6.7% on LGCs (25-70k cu.m.), 35.8% on MGCs (13-25k cu.m.), and 36.8% on SGCs (0-13k cu.m.)”, the shipbroker said.

Banchero Costa also noted that “by far the top source of LPG for Europe in recent years is the United States, accounting for 39.2% of EU’s imports in Jan-Aug 2024. Volumes on this route has gone through the roof over the last decade. In the first 8 months of 2024, LPG exports from the USA to the EU increased by +16.4% y-o-y to a record 5.5 mln tonnes. Volumes from Norway to the EU also increased by +6.6% y-o-y in Jan-Aug 2024 to 2.2 mln tonnes. From the UK there was a -1.1% y-o-y decline to 1.1 mln tonnes. From Algeria there was a +1.2% y-oy increase in Jan-Aug 2024 to 1.8 mln tonnes. From Turkey, 0.4 mln t of LPG were shipped to the EU in Jan-Aug 2024, +56.9% y-o-y. From Russia there was a -20.3% y-oy decline to 0.4 mln tonnes”, the shipbroker concluded.

Nikos Roussanoglou, Hellenic Shipping News Worldwide