Brimming Chinese LPG Terminals, Storage Limit Further Imports but Port Congestion Easing

China’s LPG terminals and storage tanks are still brimming with supply even though port congestion has eased after imports resumed in late March with the end of lockdown measures to control the COVID-19 pandemic, trade sources said June 16.

Tight storage availability is slowing China’s resurgent imports, which have been spurred by the resumption of cheaper US LPG inflows via an approval process for exemptions from high import tariffs. At least one major Chinese importer, PDH plant operator Oriental Energy, had even offered to sell cargoes in the Asian market to help draw down high stocks, traders said, adding such moves have started to ease the congestion at ports seen since H2 May.

View entirety: S&P Global Platts