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Russia increased the export of liquefied hydrocarbons by 3.5 times


Russia increased the export of liquefied hydrocarbons by 3.5 times

The structure of consumption of liquefied hydrocarbon gases (LHG) in the Russian Federation differs significantly from the European one, where the public sector is in the lead.

In the future, experts predict  growth in LPG consumption both in Russia and in Europe up to 42 million tons.

However increase in demand for liquefied hydrocarbons  in the Russian and European market  will be determined by similar factors. The main growth is expected in the chemical industry and the automotive sector..

Thus, in Russia, the growth in LPG consumption will be driven by the following:
   • Increasing the use of pyrolysis as a raw material.
   • Transition to European gasoline quality standards.

Given the positive global market trends, Russian LPG producers can further increase their exports. Thus, over the past 5 years, LPG exports from Russia have increased 3.5 times.

But there is currently a row  obstacles for Russian LPG exporters:
   • Most Russian ports on the Black and Baltic Seas are not equipped with LPG transshipment terminals.  Russia, by exporting LPG in tank wagons, allows its neighbors to earn on re-export (Ukraine, the Baltic states), which results in the loss of 50 to 100 dollars per ton of LPG.
   • Insufficient use of multimodal tank containers.

Read more in the report Industrial Information Agency.