Sibur's LPG Exports via Ust-Luga Decline by 37% in 2024
MOSCOW (Reuters) - Sibur, Russia's largest liquefied petroleum gas (LPG) producer, cut exports through the Baltic Sea port of Ust-Luga, its main exporting gateway, by 37% to 570,000 metric tons last year, according to traders and LSEG ship-tracking data.
Data for 2024 has not yet been made available on Russia's total exports of LPG, which were hit by European Union sanctions last year. Traders have said some buyers began to shun Russian LPG in 2022 as a precautionary move before the restrictions.
The EU sanctions include some exemptions, including for butane and isobutane, which are used as a feedstock for production of other petrochemicals.
Poland, the largest importer of Russian LPG, is set to cut its purchases by around 80% this year due to Western sanctions on Moscow over Ukraine, a lobby group said.
Traders said that Sibur had diverted LPG flows to the Russian domestic market, including to its own plants as well as for use in transport and housing.
Although a lack of carriers has also hit exports, traders said that Sibur was able to ramp-up flows through Ust-Luga at the end of last year by deploying bigger ships, such as MGC (medium gas carriers), able to carry up to 20,000 tons of LPG.
(Reporting by Reuters; Editing by Alexander Smith)
