Russia’s SIBUR is planning to reduce LPG exports from its Baltic Sea export hub as its plants experienced shortages due to global oil production cuts. Russian producers have lowered its oil output by almost 2 million bpd to 17-year lows as part of coordinated supply curbs under the OPEC+ deal. As a result, SIBUR’s LPG plants are facing shortages of natural gas liquids.
Traders said that SIBUR’s Tobolsk plant in western Siberia has already cut LPG production. Some of them said SIBUR planned to slash Baltic LPG exports to between 60,000 and 65,000 tons in July, the lowest since February 2015 and compared to nearly 180,000 tons in June. SIBUR typically exports LPG to Finland, the Netherlands, Poland, Belgium, Germany, and Sweden, The company also started deliveries to India and Oman earlier this year.
Tanker tracking data showed SIBUR delivered five cargoes of 23,000 tons of LPG from Ust-Luga in the Baltic sea on July 1-15. Meanwhile, six-to-seven other shipments of roughly 34,000 tons of LPG are expected to be sent before end-July. SIBUR’s LPG exports via Ust-Luga averaged 115,000 tons/month in the first half of 2020, plunging 44% year-on-year.
