Russia reduced LPG exports: there is a shortage of gas carriers due to Western sanctions
29.01.2024 - 17:11
Due to Western sanctions, Russia is experiencing a shortage of gas carriers for the transportation of liquefied petroleum gas from the Baltic port of Ust-Luga.
Russia’s largest petrochemical company and LPG exporter “Sybur” is reducing gas exports from the Baltic port of Ust-Luga due to a shortage of gas carriers amid sanctions, Reuters reports.
The reduction in supplies further undermines Russian fuel exports, which have already suffered from fires and drone attacks, particularly in the port of Ust-Luga.
The export of liquefied gas from Ust-Luga has already decreased in January to 50 thousand tons, from 67 thousand tons of the average monthly indicator in 2023.
Time charter “Sybur” with Navigator Gas for two gas carriers, Navigator Leo and Navigator Libra, sailed in December 2023. These two vessels shipped up to 40% of total LPG exports from Ust-Luga, where “Sybur” is the sole supplier.
If “Sybur” does not find a replacement for Navigator Gas gas carriers, it risks significantly reducing transshipment in Ust-Luga.
It will be difficult for the company to find other ice-class vessels due to EU and US sanctions.
Earlier, USM reported that on the night of January 21, there was an explosion and a fire in the Ust-Luga port of the Leningrad region of the Russian Federation. A fire broke out at one of the Novatek terminals.
