The global liquefied petroleum gas (LPG) market is facing an upheaval as high tariffs on U.S. imports force Chinese buyers to swap American cargoes for alternatives from the Middle East, while U.S. shipments divert to Europe and elsewhere in Asia.

The shakeup is expected to depress the shale gas byproducts’ prices and demand, hurt the bottom lines of U.S. shale producers and Chinese petrochemical companies, and boost the appetite for alternatives such as naphtha.

It is also expected to benefit Middle East suppliers, who are being tapped by the Chinese importers as replacements, and opportunistic LPG buyers in Asia in markets such as Japan and India, who are taking advantage of the product’s price declines.

Natural gas liquids (NGLs) – propane, ethane and butane – are the latest energy products ensnared in the escalating trade war between the world’s two largest economies. China has already halted U.S. crude and liquefied natural gas (LNG) imports.

Chinese petrochemical firms reliant on abundant U.S. LPG and ethane supply as feedstock have become the lowest cost producers globally. U.S. oil and gas producers need China to buy their NGLs as domestic supply exceeds demand, and swelling inventories of these products could hurt the economics for shale…

The Panama-flagged vessel, the Eventin, was moved on Thursday (April 17) to the Nordperd anchorpoint, about 3 nautical miles from its previous position. According to official sources it is now at an anchorage where ships carrying dangerous goods can safely moor without affecting harbour operations or the surrounding area. The operation was carried out by tugs commissioned and monitored by German customs.

The Eventin was found drifting out of control off Germany’s Baltic Sea coast in January. It had been on its way from Russia to Egypt with a cargo of around 100,000 metric tons of oil, worth some 40 million euros ($45.24 million).

On Monday, Germany’s finance ministry said a German court will weigh a request to release the seized oil tanker that is believed to be part of a so-called shadow fleet used by Russia to circumvent oil sanctions.

The finance ministry declined to reveal the identity of the plaintiff, whether the petition had been brought by the owner of the ship or its cargo, or how long the legal process would last.

Russian authorities at the time said they had no information about the ship or its owner.

(Reuters)

Russia’s Arctic oil exports to China are set to rise sharply this month buoyed by a jump in ship-to-ship transfers at sea to ensure tankers pulling into port are not on U.S. sanctions lists, according to traders and data from Vortexa.

The Arctic oil business accounts for a tenth of Russia’s seaborne oil exports which were hit with widened U.S. sanctions in January on nearly all tankers carrying crude oil grades such as ARCO and Novy Port and on Russian producer Gazprom Neft.

To evade the curbs, ship-to-ship (STS) transfers of cargoes are taking place in international waters off Singapore and Malaysia where cargoes are loaded on to Very Large Crude Carriers (VLCCs) that are not subject to sanctions before heading for Chinese ports, according to traders and Vortexa senior analyst Emma Li.

At least 4 million barrels of Arctic oil completed STS last week and 16 million more have arrived, or will arrive, in the South China Sea this month, Li estimated.

China’s Arctic oil imports are rebounding given ample supply, but the volume eventually discharged will vary depending on logistics hurdles and buying interest from Chinese refiners, she added.

Russian oil exporter Gazprom Neft did not immediately respond to a Reuters’ request for comment.

China’s…

Asian spot liquefied natural gas (LNG) prices remained at a near one-year low this week, as supply disruptions from three export facilities in the region and some buying interest capped losses fuelled by overall weak demand.

The average LNG price for June delivery into north-east Asia LNG-AS was at $11.50 per million British thermal units (mmBtu), estimated industry sources, down from $11.80/mmBtu last week but still at its lowest levels since mid-May.

“Lower Asian LNG prices this week prompted opportunistic buying by some East Asian importers, while supply disruptions at export projects in Australia and Brunei provided support to otherwise falling regional fundamentals,” said Rystad senior analyst Masanori Odaka, adding that Korea Gas Corporation, Taiwan’s CPC Corporation and a Chinese importer had recently made spot purchases.

“While some Asian importers took advantage of the dip to make purchases, others adopted a wait and-see approach as they evaluated turbulent market conditions amid sufficient storage levels.”

Inpex Corp, which operates Australia’s Ichthys LNG, said the rate of production at the plant has decreased temporarily, without specifying why or when full production would resume.

In Southeast Asia, industry and trade sources said…