popular articles

Declining demand for LPG in Europe

Despite an abundant supply of LPG, market trends in Europe are giving rise to many uncertainties, following two winters of low demand.
Baisse demande GPL Europe

Please share:

The liquefied petroleum gas (LPG) market remains plagued by double uncertainty, after a relatively quiet heating season. On the one hand, price fluctuations in the natural gas and LNG markets. On the other, potential variations in demand in the Asian petrochemical sector. This follows two consecutive winters of weak heating demand, despite an abundant supply of LPG, mainly from US exports and refinery production. This abundance, combined with sluggish demand, exerted little pressure on prices. It has maintained them at a moderate level compared with previous years, according to data provided by Platts, a division of S&P Global Commodity Insights.

CIF NWE propane cargoes were valued at $551.75/mt on March 7, down $3.50/mt on the day but up $6.50/mt on the week. This price level, although up slightly over the week, remains below the peaks reached in February. It is also well below the September peak, marking the start of the heating season. This situation reflects the volatility of the market, influenced not only by seasonal demand but also by changes in the global geopolitical and economic context.

The focus is now on the future, with particular concern about the potential increase in demand for petrochemicals in Asia and turbulence in gas markets, which could reduce supply in Europe. The expansion of propane dehydrogenation facilities in Asia could, in the event of stronger demand, direct LPG flows from the United States eastwards, exacerbating pressure on European supply. “Persistent weakness in global petrochemical demand is a cause for concern,” commented S&P Global analysts. However, low LPG prices in the USA could exacerbate the competition, in the face of equally low naphtha and ethane values on both the US and world olefins markets.

Market Challenges and Medium-Term Outlook

The future of the petrochemical industry remains unclear, with few expectations of improved margins for the rest of the year. The outlook brightened slightly in Europe at the end of February, mainly for naphtha, but demand for LPG remains marginal. This complex dynamic raises questions about the future balance between supply and demand, with uncertainties linked to climatic conditions and changes in global energy markets.

Faced with these challenges, the LPG market is adjusting, with increased vigilance over the coming heating seasons. Market players are concerned about the possibility of rising demand in Asia and increased volatility in natural gas prices. The latter are preparing adaptive strategies, scrutinizing US supply and European storage and regasification capacities.

Register free of charge for uninterrupted access.

Publicite

Recently published in

ONEOK completes acquisition of remaining 49.9% in Delaware Basin JV for $940mn

Energy company ONEOK has acquired full ownership of Delaware Basin JV, consolidating its natural gas gathering and processing assets in the Permian Basin for a total amount of $940mn.
The Trump administration is seeking Asian partners to advance a $44 billion Alaska pipeline project aimed at exporting liquefied natural gas to the Indo-Pacific region.
The Trump administration is seeking Asian partners to advance a $44 billion Alaska pipeline project aimed at exporting liquefied natural gas to the Indo-Pacific region.
Gunvor USA and PureWest Energy partner to deliver certified low-carbon gas backed by traceability technology and aligned with international standards.
Gunvor USA and PureWest Energy partner to deliver certified low-carbon gas backed by traceability technology and aligned with international standards.
ExxonMobil has signed a memorandum of understanding with state-owned Socar to explore unconventional oil and gas resources in central Azerbaijan, strengthening its long-standing presence in the Caspian Sea region.
ExxonMobil has signed a memorandum of understanding with state-owned Socar to explore unconventional oil and gas resources in central Azerbaijan, strengthening its long-standing presence in the Caspian Sea region.

Gas injections in Europe exceed 0.5 bcm, a first since 2022

European Union gas reserves are progressing slowly as LNG imports reach an all-time high in May, amid supply tensions and rising prices.
Gazprom increased its daily natural gas exports to Europe via the TurkStream subsea pipeline, reaching 46 million cubic metres per day in May, according to Reuters calculations.
Gazprom increased its daily natural gas exports to Europe via the TurkStream subsea pipeline, reaching 46 million cubic metres per day in May, according to Reuters calculations.
Naftogaz will fund the purchase of new drilling platforms through a €36.4mn loan from the European Bank for Reconstruction and Development, following a sharp decline in gas production due to Russian strikes.
Naftogaz will fund the purchase of new drilling platforms through a €36.4mn loan from the European Bank for Reconstruction and Development, following a sharp decline in gas production due to Russian strikes.
Natural gas combined with carbon capture achieves emission levels comparable to wind and solar power, positioning itself as an economical alternative to renewables despite intermittency and high battery storage costs.
Natural gas combined with carbon capture achieves emission levels comparable to wind and solar power, positioning itself as an economical alternative to renewables despite intermittency and high battery storage costs.

Flex LNG secures $175 mn lease financing for Flex Courageous vessel

Flex LNG has finalised a $175 mn lease financing for its Flex Courageous vessel, generating $42 mn in net proceeds as part of a financial restructuring plan announced earlier this year.
Sempra Infrastructure has received approval from U.S. authorities to export 13.5 Mtpa of liquefied natural gas to countries without free trade agreements, marking a key step in developing the Port Arthur LNG Phase 2 terminal.
Sempra Infrastructure has received approval from U.S. authorities to export 13.5 Mtpa of liquefied natural gas to countries without free trade agreements, marking a key step in developing the Port Arthur LNG Phase 2 terminal.
EOG Resources finalises a $5.6bn acquisition of 675,000 net acres from Encino Acquisition Partners, consolidating its strategic position in the Utica formation and increasing its dividend by 5 %.
EOG Resources finalises a $5.6bn acquisition of 675,000 net acres from Encino Acquisition Partners, consolidating its strategic position in the Utica formation and increasing its dividend by 5 %.
In May 2025, natural gas demand for electricity generation in the United States declined, influenced by cooler weather conditions and a significant increase in solar generation.
In May 2025, natural gas demand for electricity generation in the United States declined, influenced by cooler weather conditions and a significant increase in solar generation.

Cheniere signs 15-year deal with Canadian Natural to support Sabine Pass

Cheniere has signed a long-term gas supply agreement with Canadian Natural Resources to support the planned expansion of its Sabine Pass liquefaction terminal in Louisiana from 2030.
Cnooc will immobilise its Hai Yang Shi You 301 barge in July, temporarily reducing LNG bunkering capacity in China, where only five units handle supply.
Cnooc will immobilise its Hai Yang Shi You 301 barge in July, temporarily reducing LNG bunkering capacity in China, where only five units handle supply.
The Iraqi federal government initiates legal proceedings against the autonomous region of Kurdistan regarding gas contracts signed with American companies, while Washington reaffirms its support for these strategic energy agreements.
The Iraqi federal government initiates legal proceedings against the autonomous region of Kurdistan regarding gas contracts signed with American companies, while Washington reaffirms its support for these strategic energy agreements.
South Africa aims to revive the exploitation of its shale gas reserves by seeking technological and commercial support from the United States, proposing a major purchasing agreement for American liquefied natural gas.
South Africa aims to revive the exploitation of its shale gas reserves by seeking technological and commercial support from the United States, proposing a major purchasing agreement for American liquefied natural gas.

China Adopts Henry Hub Indexation in American LNG Contracts

Several Chinese companies have signed long-term contracts to purchase liquefied natural gas indexed to the U.S. Henry Hub, despite heightened trade tensions and the recent application of specific tariffs on American hydrocarbons.
Jereh integrates artificial intelligence solutions into its oil operations, increasing fracturing efficiency by 36% through an autonomous electric system tested in the Sichuan Basin.
Jereh integrates artificial intelligence solutions into its oil operations, increasing fracturing efficiency by 36% through an autonomous electric system tested in the Sichuan Basin.
The Australian government has authorized an extension of the major North West Shelf gas project until 2070, sparking economic, cultural, and environmental debates both domestically and on international liquefied natural gas markets.
The Australian government has authorized an extension of the major North West Shelf gas project until 2070, sparking economic, cultural, and environmental debates both domestically and on international liquefied natural gas markets.
Pacific Energy’s Canadian subsidiary plans to produce liquefied natural gas with one of the lowest carbon intensities in the sector, using low-emission technologies and local carbon credits.
Pacific Energy’s Canadian subsidiary plans to produce liquefied natural gas with one of the lowest carbon intensities in the sector, using low-emission technologies and local carbon credits.

Arbitration: Enagás Secures USD 302 Million from Peru After Upward Revision

ICSID increases compensation owed to Enagás to USD 302 million in dispute over Peru’s cancellation of a major gas pipeline project.
Belgrade has confirmed the temporary extension of its gas supply contract with Moscow, ensuring the daily delivery of 6 million cubic metres until autumn at an unchanged price.
Belgrade has confirmed the temporary extension of its gas supply contract with Moscow, ensuring the daily delivery of 6 million cubic metres until autumn at an unchanged price.
European gas reserves reach 50.3 bcm, but current injection rates may prevent meeting the 90% regulatory target before November.
European gas reserves reach 50.3 bcm, but current injection rates may prevent meeting the 90% regulatory target before November.
The U.S. federal commission has authorised Venture Global to begin construction of the CP2 plant, a 28 Mt/year LNG terminal that could become the country’s largest.
The U.S. federal commission has authorised Venture Global to begin construction of the CP2 plant, a 28 Mt/year LNG terminal that could become the country’s largest.

Advertising