Can Asia’s demand keep pace with US?

LPG Special Report: Can Asia’s demand keep pace with US and Middle East supplies?

Robust LPG exports from the US and Middle East have been soaked up by healthy demand in Asia.
The easing of Panama Canal restrictions has led to a rebound in VLGC transits, though some vessel owners still prefer to transit via the Cape of Good Hope for the return journey from Northeast Asia to the US Gulf.
Europe’s LPG imports retreated seasonally and were further pressured by weak petrochemical and industrial demand.
In contrast, China’s LPG imports surprised with a record high in July.
- Healthy demand from existing PDH plants has been bolstered by the addition of six new PDH plants this year.
- However, expectations of further growth in China’s LPG imports are tempered by ongoing weakness in petrochemical margins.

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Robust LPG exports from the US and Middle East have been soaked up by healthy demand in Asia.
The easing of Panama Canal restrictions has led to a rebound in VLGC transits, though some vessel owners still prefer to transit via the Cape of Good Hope for the return journey from Northeast Asia to the US Gulf.
Europe’s LPG imports retreated seasonally and were further pressured by weak petrochemical and industrial demand.
In contrast, China’s LPG imports surprised with a record high in July.
- Healthy demand from existing PDH plants has been bolstered by the addition of six new PDH plants this year.
- However, expectations of further growth in China’s LPG imports are tempered by ongoing weakness in petrochemical margins.