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Russian Sibur resumes LPG supply to India after doubling LPG loadings at Ust-Luga

According to industry sources and LSEG, Sibur, Russia’s largest producer and supplier of liquefied petrol gas (LPG), doubled the amount of LPG loaded through the Baltic port Ust-Luga from January-May 2025 compared with the same period of 2024, to 418,000 metric tonnes.

Sources said that Sibur was able to increase its exports through the shipment of new MGC class (medium-sized gas carriers) gas tankers. Each of these vessels can carry up to 20,000 tonnes of product.

LSEG data revealed that the company has also resumed LPG deliveries to India, which it had last done in 2023.

Sources said that after EU sanctions were imposed on Russian LPG (except butane and iobutane), at the end 2024, Sibur redirected some volumes from Europe to Ust-Luga for seaborne exports, and searched for new buyers of its product.

Up until April of this year, 90% of Sibur's LPG sea cargoes were bound for Turkey. Last month Sibur sent two tankers totaling 40,000 tons of LPG to India.

According to traders Sibur has shifted some LPG volumes out of Turkey and into India due to the oversupply on the Mediterranean Market.

"There's a lot (of gas) on the Mediterranean market, particularly propane. It is a rational move to divert some of the volumes towards India," said one of the sources.

Sibur confirmed their LPG shipments to India from Ust-Luga in May.

The company believes the increased LPG shipments from Ust-Luga by Sibur in general is due to an "increase in the available volumes of LPG, since the Russian market (is) currently in surplus."

The company's press office stated that it "continually evaluates all markets available and will consider the economic efficiency of deliveries" in regards to the future prospects for Sibur LPG deliveries into India.

Sibur supplied LPG to India from Ust-Luga in the third quarter 2023, after European buyers banned LPG purchases.

According to traders and LSEG, Sibur will reduce loadings at Ust-Luga Port by 37% in 2024 compared to 2023, to 570,000 tonnes.

The European Union placed an embargo at the end of 2023 on the importation of Russian LPG. There was a 12-month period of transition during which exports of propane-butane to Europe were possible under contracts signed before the sanctions. The sanctions are in full force since December 2024.

(source: Reuters)