Iran’s liquefied petroleum gas exports rose to record levels last May, with shipments increasing to China, Iraq and South Asia.
Iranian liquefied oil gas exports in May were about 973.26 thousand tons; That is, a third above loading shipments in April, exceeding the 859,000 tons recorded in May 2022, according to data seen by the specialized energy platform.
The volume of Iran’s exports of liquefied petroleum gas is the largest in the country’s history since the re-imposition of sanctions on Tehran following the withdrawal of former US President Donald Trump’s administration from the nuclear agreement in 2018.
The highest monthly exports
Trade sources said the latest shipments in May could be the highest ever monthly exports from Iran, and in line with forecasts of around 1 million metric tons per month for the rest of the year.
Iran’s total exports of liquefied petroleum gas, in the first 5 months of 2023, amounted to about 4.013 million tons, according to S&P Global Platts.
With a monthly average of 802,652 metric tons over the January-May period, total exports for 2023 are expected to be around 9.63 million tons (if loading programs remain around current levels or more), beating analysts’ previous forecast of 8.3 million tons. metric.
The increase in Iran’s exports of liquefied petroleum gas comes with the increase in production. Analysts said that Tehran has worked to significantly increase oil production since the beginning of the year; Because it is excluded from the OPEC + cuts due to US sanctions and motivated by the expansion of the South Pars field.
While Iranian crude oil and condensate exports fell from their highest levels in 4 years at about 1.7 million barrels per day in May, to their lowest level in 8 months at 922 thousand barrels per day in June.
Standard & Poor’s global data for marine commodities at sea showed that Iran continued to benefit from oil production in floating storage to boost exports.
Aspects of Iran’s liquefied petroleum gas exports
China acquired the lion’s share of Iran’s liquefied petroleum gas exports; Tehran shipments loaded in May to Beijing largely arrived in early June at ports in southern and northeastern China, according to the Platts ship and commodity tracking software.
The volumes of Iran’s cargoes loaded in May ranged between 17.3 thousand tons and 48 thousand tons; Fifteen ships left the port of Asalouyeh, and seven ships set sail from the port of Siraf in May.
Shipping sources said that 5 ships loaded with liquefied oil gas left Khomeini port in May, and one ship from Kharg Island.
The ships headed to the Chinese ports, such as Jiaxing, Shanghai, Kaching, Magishan, Shulanguo, Guli, Guangdong, Fujian, Longkou, Ningbo and Lianyungang.
Other than China, some ships carried smaller volumes to Iraq, Pakistan, Oman and India, Platts data showed.
LPG prices
Iran’s record LNG exports, which arrived in June, to Asia, along with other Middle Eastern supplies, helped Chinese importers to be selective in their purchases. It was said that many bidders did not submit bids because of offers promised high premiums.
Ample supply of shipments of propane and butane – gaseous liquids used as a feedstock in the petrochemical industry – has deepened the butane-for-propane discount in recent months. Saudi Aramco set July contract prices for butane at $25 per metric ton less than propane.
The abundant supply of liquefied petroleum gas in Asia has also led to lower prices. What whetted the appetite of Asian buyers.
S&P Global data showed that average Middle East propane shipments (on a FOB basis) were $426.35 per metric ton in June, from $475.39 per metric ton in May and $556.13 per metric ton in April.
Middle East Bhutan shipments on a FOB basis averaged $404.55/metric ton in June, down from $468.77/ton in May and $550.92/ton in April.
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