Face-Off: US and Middle East Compete for the Asian LPG Market

Global trade of LPG, and more specifically propane, will change significantly over the next four years due to a supply surge and export infrastructure buildout in North America, a growing surplus in the Middle East, and growing demand in Asia.

A snapshot of U.S. LPG export by destination highlights that until now increased exports have flowed predominantly to Asia, especially China. However, ESAI Energy argues in this new analysis that the era of “easy growth” for U.S. exports to Asia will come to an end.

In the period to 2020, ESAI Energy predicts that Asia’s LPG deficit will increase more than North America’s surplus export capacity. In addition, over the forecast timeframe, greater plant LPG supply in Saudi Arabia and Iran and higher refinery LPG supply cause the Middle East’s surplus to increase as well.

Face-Off  will address this oversupply in the Middle East and North America will have significant global implications for these commodities. Key questions to be answered by this analysis include:

  • How much larger will the Asian market be in four years?
  • Can the US capture a sizeable share of the growing Asian market?
  • How much competition will there be from Middle East?

In this new study, ESAI Energy examines these questions and more as we analyze the interaction between US, Middle East, and Asian LPG markets – in the medium term to 2020. Our analysis helps guide decision-making in this changing environment.


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