China Doubled its LPG Import From Russia in 2022

According to an analysis based on data from industry sources, Russia more than doubled its rail exports of liquefied petroleum gas (LPG) to China in 2022 as part of the Kremlin's drive to diversify its energy export sales.

Traders said the increase was primarily due to an increase in deliveries from the Irkutsk Oil Company (INK) following the opening of its Ust-Kut gas processing plant in eastern Siberia.

According to the data, exports to China increased to 147,100 tonnes from 62,600 tonnes the previous year.

LPG, also known as propane and butane, is primarily used as fuel for automobiles, heating, and the production of other petrochemicals. Almost all of Russia's LPG exports to China are transported by rail.

Other major LPG exporters, including Gazprom, Rosneft, Lukoil, Tatneft, and Sibur, diverted supplies away from Ukraine and Europe last year.

The increase occurred at the same time that trade with China was slowed in 2021 due to the COVID pandemic.

According to traders, LPG exports from Russia to China are currently hampered by infrastructure bottlenecks such as limited railway capacity.