Recently, the Japanese government said that 2017 imports of liquefied petroleum gas (LPG) from the United States will double, accounting for about half of the total purchase volume. Like crude oil, U.S. LPG exports have led to a gradual reduction in market share in the region’s largest oil and LPG producer, Saudi Arabia.
Data from Thomson Reuters also showed that by the end of 2017, the US had reached nearly 6 million tonnes of LPG exports to Japan, doubling sales year-on-year. The import of US LPG is beneficial to Japan’s energy security and diversification. U.S. oil production has surged 80% since 2010 and is expected to rise further, with more U.S. LPG coming into the market and prices becoming more competitive. The Japanese government’s data show that, including freight, U.S. LPG prices have been flat or slightly below Middle Eastern crude prices. According to trade data statistics show that Asia is the world’s largest LPG import market, China, India, Japan and South Korea accounted for 1/3 of the global share.
PVA |