HomeNewsRussia lacks infrastructure to replace U.S. LPG for China

Russia lacks infrastructure to replace U.S. LPG for China

4/10/2025
  • Chinese petrochemical makers set to cut output
  • Russia plans Pacific LPG terminal, but lacks infrastrcuture

Russia's exporters of liquefied petroleum gas (LPG) are unlikely to be able to provide enough LPG to make up for U.S. supplies disrupted by tariffs, traders said on Thursday, citing a lack of infrastructure.

Industry insiders said that Chinese petrochemical makers that buy U.S. LPG worth $11 billion annually are poised to cut output or shut for maintenance in the coming weeks as retaliatory tariffs on U.S. imports drive up costs.

LPG, or propane and butane, is mainly used as fuel for cars, heating and to produce other petrochemicals.

Russia is one of the world's five biggest producers, but its exports of LPG to China are by rail and trucks.

Its lack of an LPG sea terminal in the region restricts its ability to significantly increase shipments east in the near future.

Russia is expected to complete the construction of an LPG sea terminal at the Pacific port of Sovetskaya Gavan by the end of this year after repeated delays for reasons including lack of funds and uncertainties over production.

According to data from industry sources, Russia's LPG exports to China via railways last year reached around 300,000 metric tons, or around 9% of Russia's total LPG exports.

That compares with China's seaborne LPG imports of around 35 million tons last year.

According to LSEG data, the U.S. accounted for 56.3% of the total supplies to China, followed by United Arab Emirates (10.6%), Iran (9.8%), Qatar (7%), Saudi Arabia (3.9%), Oman (2.9%) and Kuwait (2.7%).

Last year, China bought a record 17.3 million tons of U.S. propane, or 550,000 barrels per day, 60% of China's total imports of the gas liquid.

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