Key takeaway

In this special report, we review how global LPG exports have begun the year on a muted note. US LPG and ethane export capacity is expected to remain tight through summer until expansions kick in; while returning OPEC+ supply could have minimal impact on Middle East LPG sendout. On the demand side, Asian LPG imports for petrochemical use could be threatened through May by unprofitable margins even as new plants start up. Meanwhile, NWE refinery closures will do little to tighten LPG and naphtha balances amid ongoing rationalisation of regional steam cracker fleet. Finally, VLGC freight rates could be dampened by lower year-on-year ship maintenance and lack of Panama Canal drought-related restrictions through June.