Middle East and Saudi Arabia exports to rise in 2022.
The exports in the Middle East will rise nearly 7 percent and in Saudi Arabia exports will increase in the first four to five months of 2022.
FREMONT, CA: LPG exports from major Middle Eastern producers are expected to rise 6.6 percent in 2022 compared to 2021, as competition for expanding Asian markets intensifies amid expanding supply from other producers, led by the US, according to traders, producers, and analysts. As per the sources, the total increase of exports is expected to reach up to 38.9 million mt in 2022 up from 36.5 million last year, from Qatar, the UAE, Saudi Arabia, Kuwait, and Iran. They added that the majority of these are committed under term contracts, though Qatar occasionally offers spot LPG.
Qatar's 2022 exports are expected to remain stable at around 10 million mt; the UAE at 9.9 million mt, up from 9.4 million mt in 2021; and Saudi Arabia at around 8.6 million mt, up from 7 million mt. According to a source familiar with the matter, Kuwait's LPG exports are expected to reach 5 million mt in 2022 and this would be an increase from around 4.6 million mt in 2021.
Kuwaiti production is expected to be between 5.2 million and 5.3 million mt in 2022. Exports will be around 5 million mt, with local demand ranging from 250,000 mt to 300,000 mt. This year's term volumes are significantly higher, accounting for nearly all of the production. Unlike in 2021, there will be few spot offers and exports this year and only a few may be seen in the second half of this year. Kuwait Petroleum Corp. sold three 44,000 mt mixed propane/butane cargoes for July-September loadings via a semi-term tender in June.
This came after KPC had awarded five-spot export tenders in a row. As per the sources, this could be due to the arrival of Kuwait's fifth gas train, which will add 440,000 mt yearly, or nine to ten cargoes yearly, in Q2 2021. An industry analyst predicted that Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, and Oman would increase their exports by 1.5 million mt this year, with Saudi Arabia expected to export highly in the beginning four to five months.