Russia’s rail exports of liquefied petroleum gas (LPG) were down 24% year on year in January-February to 451,000 metric tons, Reuters calculations based on industry data showed on Thursday, as European sanctions curbed the fuel supplies.

European Union sanctions on Russian LPG over the war in Ukraine took effect on December 20. The restrictions were proposed last year by Poland, one of Russia’s largest LPG importers.

LPG, or propane and butane, is mainly used as fuel for cars, heating and to produce other petrochemicals. Exports by rail account for most of Russia’s LPG overseas supply, while it transports the rest by truck.

According to the data, supplies to Poland tumbled 88% to 24,000 tons for the period, while exports to Latvia slowed to a trickle of only 500 tons compared with 53,500 tons in the same period last year.

Lithuania did not take in any Russian LPG in the first two months of the year.

Russia was able to divert significant volumes of the fuel away from Europe to other regions and countries, including Afghanistan, where the production of LPG is constrained due to a lack of the necessary facilities.

Russia’s largest producer and exporter of LPG, Sibur, raised supplies via the Baltic Sea port of Ust-Luga, the key exporting outlet, by 42% in February from January to 82,000 tons, according to the industry data.

Around 90% of LPG supplies from Ust-Luga are delivered to Turkey.

Traders have said that Sibur’s exports were facilitated by new MGC (medium gas carrier) tankers, a lack of which had hit supplies last year.
Source: Reuters