Russia plans to boost exports of liquefied petroleum gas (LPG) in February to benefit from better profitability than in its domestic market, traders said on Wednesday.
LPG exports in February are targeted at 753,500 tonnes, up by a third from January, the traders said.
Russia could raise seaborne exports mainly via the Baltic port of Ust-Luga and Black Sea port Taman in February by 92% from January to 240,700 tonnes, according to Reuters calculations and industry sources.
Supplies via land border crossings are set to rise by 17% to 512,800 tonnes, traders added.
“Traditionally, export of LPG from Russia, especially through sea ports, is profitable in winter. Especially now, when prices on the domestic market are near historical lows,” one of the traders said.
Russian LPG supplies to Ust-Luga will rise to 156,400 tonnes in February from 90,400 tonnes in January while supplies to Taman will rise to 66,800 tonnes from 29,300 tonnes.
Supplies to China are set to reach 136,800 tonnes, up from 104,500 tonnes the previous month, while exports to Poland will hit 202,000 tonnes from 177,200 tonnes. Supplies to Afghanistan are projected at 53,100 tonnes, up from 42,000 tonnes.
Russian LPG, unlike oil and oil products, is not under sanctions imposed by the West.
Source: Reuters