LPG News & Events

The company said, "The Q1 was marked by significant disruption across global LPG and energy markets, driven primarily by escalating geopolitical tensions in the Middle East. The U.S./Israel-Iran conflict effectively disrupted transit through the Strait of Hormuz for much of March, while attacks on regional infrastructure curtailed production and exports of oil, gas, LPG, and petrochemical products. This disruption followed an advisory of halted exports by Saudi Aramco from its Juaymah NGL facility following damage to a pipe-support trestle announced in late February 2026. The Juaymah/Ras Tanura export terminal typically handles approximately 0.8 million metric tons, or MMT, of LPG exports per month. At the time of writing, export activity from the region remains limited and the timing for a full restoration of capacity remains uncertain. As a result of these supply disruptions, energy and LPG prices moved sharply higher during the quarter. Average crude oil prices increased from approximately $64 per barrel in December 2025 to $106 per barrel in March 2026. CFR Japan propane prices rose from $489 per metric ton in January 2026 to more than $730 per metric ton in March 2026, while butane prices increased from $475 per metric ton to over $784 per metric ton during the same period. Similar pricing trends were observed in Northern Europe, with butane demonstrating particular strength due to limited replacement supply into Asia. In contrast, U.S. Gulf LPG prices increased more moderately, particularly for propane, as higher oil and gas prices incentivized incremental U.S. production. Strong production growth, combined with elevated inventories and terminal constraints, caused propane prices as a percentage of WTI crude to decline from 43% at the beginning of the quarter to approximately 35% in March 2026. However, butane prices strengthened amid rising demand for split cargoes destined for Asian importers seeking alternatives to Middle Eastern supply."