Russia boosts LPG rail exports to China by almost a third in H1

Russia cranked up liquefied petroleum gas (LPG) exports to China via rail by almost a third in the first half of the year to 133,000 metric tons (t), data from industry sources showed on Wednesday.

The fuel supplies are still curbed by infrastructure constraints and congestion on Russian railways. According to the data, supplies in June declined by 16.5% from May to 12,300 t, falling for the second month in a row.

Traders said that railcar congestion was especially pronounced at the Zabaikalsk-Manchuria border crossing due to maintenance work at the Manzhouli Far East Gas terminal in May and June.

Russian railway station Zabaikalskaya was also undergoing reconstruction, they said.

The sources said that supplies from Irkutsk Oil Company's (INK) Ust-Kut gas processing plant contributed most to the first-half increase, boosting supplies by 37,200 t year-on-year. INK accounted for almost 70% of Russia's LPG exports to China in January–June.

Other large suppliers are Novokuibyshevsk Petrochemical Company, BerezkaGas and Taneko.

LPG, or propane and butane, is mainly used as fuel for cars, heating and to produce other petrochemicals.

In 2023, Russia raised rail exports of LPG to China by 35% to 202,000 t. Russia also supplies LPG by trucks.

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