LPG for China PDH market

China's demand for LPG is expected to continue to increase, driven by the expansion of the PDH sector, and the country's LPG imports have surpassed market expectations: 

• Demand

  Demand for LPG is expected to increase from 83.7 MMt in 2023 to 88 MMt in 2024 and 91.5 MMt in 2025. The demand for LPG is mainly for civilian fuel and chemical raw materials. 

  
  

• Imports

  China's LPG imports have surpassed market expectations, with the US supplying almost 35% of imports between January and August 2024. The percentage of US supply as a percent of total imports rose from an average of 40% in 2022 to 50% in 2023 and to 60% through 1Q 2024. 

  
  

• Storage

  China's LPG storage capacity is expected to expand again in 2025. The expansion is supported by facilities built to serve new ethylene steam crackers. 

• 
  

• Production

  China's LPG production is gradually increasing, with the expected production in 2023 being 53 million tons. 

  
  

The Argus CFR Ningbo Index is used by Chinese importers, trading firms, and international producers to buy and sell LPG