LPG in World Markets Featured Article

In late 2022, Poland announced the gradual phaseout of Russian LPG in response to the war in Ukraine. Land-based exports from Russia to Poland were the predominant method of transportation used in the LPG trade between the two countries. As a result, Poland has switched to importing greater quantities of LPG via the sea instead and seaborne imports of LPG increased from 680,000 t in 2021 to 1.3 MMt in 2023. The process of eliminating Russian LPG has been both slow and costly, as Poland has a large autogas market and the change has directly impacted the pocketbooks of Polish drivers. Shiptracking data indicates that Poland has phased out seaborne supplies from Russia, but the phasing out of Russian land-based LPG supplies has been more difficult with volumes in 2023 roughly equal to those in 2022.

As Russian seaborne LPG supplies have been phased out, the Netherlands, Norway, Sweden, the UK and the United States have become key suppliers. Seaborne LPG imports for Poland are forecast at 1.4 MMt in 2024 and to climb to 1.7 MMt by 2026. Land-based LPG imports are forecast to decline from 1.3 MMt in 2024 to 1.1 MMt in 2026. Additionally, a new PDH unit operated by Grupa Azoty in Northwest Poland began operations in 3Q 2023, which will be a key driver higher LPG imports in the future.

Poland to Rely More on Seaborne Imports