Kazakhstan's Tengizchevroil (TCO) plans to double its LPG exports via Russian port Taman this year with monthly LPG exports via Taman port expected to reach about 40,000 in 2018 from 20,000 tonnes per month (on average in 2017), as per some estimates.
The major LPG producer and exporter also expects to increase propane and butane exports via this port with some traders estimating exports of propane and butane to reach 450,000 tonnes in 2018 from 240,000 tonnes in 2017.
Earlier TCO was using Ukrainian port Odessa for LPG shipments. But recent developments show a sharp decline in TCO’s LPG exports via Odessa port – with LPG exports via Odessa falling to 25,900 tonnes in February from 34,400 tonnes in January 2018 with further decline noticed in March. The trend is expected to continue as TCO is going to send 20,000 tonnes of LPG per month via Taman port (which was earlier sent via Odessa) because of lower logistic costs and other factors.
In 2017, TCO produced 1.382 million tonnes of LPG – which marks an increase of 2.3% from 2016. It also ramped up LPG exports by 3.6% to 1.261 million tonnes. In 2017, TCO's main LPG exports were – Odessa (364,429 tonnes), Poland (294,575 tonnes), Taman (236,525 tonnes) and Hungary (125,570). The company also exported 91,798 tonnes of LPG to China in 2017.
However, TCO’s LPG exports are expected to change in 2018 – with traders expecting reduced supplies to (eastern) Europe, Odessa and Poland.
In February 2018, TCO only exported 9,079 tonnes of LPG to Poland – the lowest shipment in recent years from 15,212 tonnes in January. Similarly, TCO's LPG supplies to Eastern European countries such as Hungary, Romania and Slovakia also fell sharply – 40 to 50% compared to 2017.
More about LPG shipments will be discussed at CMT’s 13th LPG Trade Summit on 23-24 October, 2018 in Istanbul, Turkey.
