LPG Monitor as of June 2022



LPG Contract Price (CP)

LPG Contract Price (CP), commonly called the “Saudi CP” is the primary driver of LPG pricing in the Far East including the Philippines. It is the international price benchmark set at the beginning of each month by Saudi Arabia’s state - owned oil company Saudi Aramco.

Aramco's CPs, which set the price of LPG lifted from the Saudi ports Yanbu, Ras Tanura and Ju'aymah under term supply contracts, are closely watched by the market as they tend to set a base level for LPG pricing for most markets East of Suez.

The DOE refer to the LPG/Saudi CP and forex monthly average changes in determining/monitoring the price adjustments of LPG in the domestic market. Following the timing of the monthly changes in CP, domestic price of LPG also varies every first day of the month and remain constant throughout the whole month.

Like all other petroleum products, the Philippines has no influence over the LPG CP as the country’s domestic requirement is small versus the world demand.

For the month of June 2022, LPG Contract Price has decreased by US$107.00/MT to US$ 750.00 /MT, from US$ 857.00/MT last month.

International LPG Market Development1

  • Saudi Aramco set its June propane term contract price at $750 per metric ton (mt), down $100/mt from May, while June butane CP was also set at $750mt, down $110/mt from May, the company said May 31.
  • The June CPs marked the second consecutive decline after three straight monthly increases, signaling ample supply from the Middle East.

  • Asia's propane price has flipped to a premium against butane for the first time in five months in the week of May 23 as supplies of mixed cargoes from the Middle East continued to rise, while spot demand for mixed cargoes from India and Indonesia has yet to resurface, Platts said.

o India, the world's second- largest LPG consumer, is estimated with annual consumption growth of about 6%. Thus, more terminals are being built or expanded to accommodate the country’s mounting demand and imports.

o China's LPG imports fell 9.2% on the month and 1.6% on the year to 1.98 million mt in April due to higher import costs, though traders expect the lower prices to revive import demand.

  • The mixed propane-butane supply from the Middle East to Asia has been boosted by several spot cargoes recently offered and sold by major producers. While term nominations for Saudi Aramco's June-loading cargoes were lower than 400,000 mt -- accepted without cuts or major delays -- traders expected more spot offers to be made, while Qatari and Abu Dhabi National Oil Company’s acceptances were also in line with nominations.
  • Asia is also set to receive healthy volumes of an estimated 2.4 million mt from the US in June, up from around 2.2 million mt the month before, comprising 70% propane and 30% butane.
  • .Estimate of US LPG exports to Europe jumped in May to 690,000 mt. About 389,000 mt headed for Northwest Europe while the remaining 301,000 mt headed to the Mediterranean Sea.
  • However, demand for LPG in Europe is likely to decrease as summer weather reduced heating consumption.

Domestic Prices      

Oil companies decreased the price of LPG effective 01 June 2022 by P5.80 kg to P5.91 kg or about P64.90-P65.01 per 11-kg cylinder. Auto LPG likewise decreased by P3.20-3.30/liter.

As of 01 June 2022, household LPG in Metro Manila are estimated to range from P879.20 to P1,107.09 per 11-kilogram cylinder.

Shown below are the retail prices of 11 Kg. Household LPG
in Metro Manila from full year of 2021 to June 2022

Year Domestic
Price
Adjustment/Kg.
Increase (-Decrease)
2021  
January 600.00-905.00 4.15-4.20
February 634.00-937.00 2.95-3.00
March 643.00-946.00 0.73-0.82
April 605.00-784.00 (3.27)-(3.30)
May 639.00-900.00 (3.15)-(3.20)
June 600.00-920.00 2.18-2.44
July 655.00-960.00 5.19-5.20
August 710.00-992.00 3.27-3.35
September 780.00-995.00 0.64-0.65
October 832.00-1040.00 7.40
November 884.00-1085.00 2.73-3.10
December 850.00-1037.00 (4.37)-(4.75)
2022    
January 794.00-1010.00 -2.55
February 793.00-1053.00 4.00
March 880.00-1100.00 7.95-8.00
April 915.00-1160.00 3.25-3.40
May 885.00-1113.00 (5.73)-(5.75)
June* 879.20-1107.09 (5.80)-(5.91)

Note: *Prices for June 2022 are estimates
 

For more information, call the Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: [email protected]
Website: www.doe.gov.ph

 

_______
1 Platts news

LPG Monitor as of May 2022



LPG Contract Price (CP)

LPG Contract Price (CP), commonly called the “Saudi CP” is the primary driver of LPG pricing in the Far East including the Philippines. It is the international price benchmark set at the beginning of each month by Saudi Arabia’s state - owned oil company Saudi Aramco.

Aramco's CPs, which set the price of LPG lifted from the Saudi ports Yanbu, Ras Tanura and Ju'aymah under term supply contracts, are closely watched by the market as they tend to set a base level for LPG pricing for most markets East of Suez.

The DOE refer to the LPG/Saudi CP and forex monthly average changes in determining/monitoring the price adjustments of LPG in the domestic market. Following the timing of the monthly changes in CP, domestic price of LPG also varies every first day of the month and remain constant throughout the whole month.

Like all other petroleum products, the Philippines has no influence over the LPG CP as the country’s domestic requirement is small versus the world demand.

For the month of May 2022, LPG Contract Price has decreased by US$97.00/MT to US$ 857.00 /MT, from US$ 954.00/MT last month.

International LPG Market Development1

  • Saudi Aramco set its May propane contract price at $850/mt, down $90/mt from April, while May butane CP was set at $860/mt, down $100/mt from April, the company said April 28.
  • The May CPs marked the first dip after three straight monthly increases, S&P Global Commodity Insights data showed. The May 2021 term propane CP was set at $495/mt, while the butane CP at $475/mt.

  • US LPG exports in April rose to 995,000 metric ton, about 10% higher than prior estimate of 729,000. Some 503,000 mt of the total export is set for Northwest Europe, while 492,000 mt is headed for the Mediterranean.

    • About 572,000 mt LPG originated from the US Gulf Coast, while 419,000 mt from the Marcus Hook refinery in Philadelphia. The remaining 4,000 mt was exported from Chesapeake, Virginia.

    • Sources said that large cargoes from the US have helped satisfy demand in the Mediterranean. Tight shipping and previously limited supply pushed buyers to look across the Atlantic, capitalizing on more competitively priced cargoes.
  • While there were reports of minor loading delays by Saudi Aramco for May LPG term acceptances, Platts noted of supply of healthy supply of LPG from Middle East countries.
  • On demand, Platts noted Northeast Asia have not been as robust as some months ago, except for the occasional enquiries from South Korean petrochemical makers. Thus, discount for second half of May-delivery of propane versus May CP swap has also deepened in last week of April to $43/mt, from $22/mt the previous session, as the region saw more sellers making offers.
  • In other parts of Asia, Indonesia’s LPG imports fell 28.01% on the month and 16.32% on the year to 464,580 mt in February, data from Statistics Indonesia showed April 26, as the country limited purchases in the face of high international prices.
    • There has been a recent lull in Indonesia's spot imports though traders are watching for any buying interest as the country celebrates Eid al-Fitr festivities.
    • Also, the government has been working on lowering its subsidy burden from LPG, imports of which are growing at 5%-6% annually. The country has long sought to replace LPG with coal-based dimethyl ether (DME) as cooking gas, and in 2020 unveiled a plan to mix DME and LPG for household use to cut LPG consumption.
    • Indonesia is the fourth-largest LPG importer, consuming an annual average of 6 million-7 million mt of LPG, about 70% of which is imported via term contracts or spot tenders.
  • Meanwhile, Chinese propane dehydrogenation plants were reportedly operating at lower rates as they incurred losses from processing costly propane imports into propylene.

Domestic Prices      

Oil companies decreased the price of LPG effective 01 May 2022 by P5.73 kg to P5.75 kg or about P63.03-P63.29 per 11-kg cylinder. Auto LPG likewise decreased by P3.22/liter.

As of 01 May 2022, household LPG in Metro Manila are estimated to range from P851.97 to P1,096.75 per 11-kilogram cylinder.

Shown below are the retail prices of 11 Kg. Household LPG
in Metro Manila from full year of 2021 to May 2022

Year Domestic
Price
Adjustment/Kg.
Increase (-Decrease)
2021  
January 600.00-905.00 4.15-4.20
February 634.00-937.00 2.95-3.00
March 643.00-946.00 0.73-0.82
April 605.00-784.00 (3.27)-(3.30)
May 639.00-900.00 (3.15)-(3.20)
June 600.00-920.00 2.18-2.44
July 655.00-960.00 5.19-5.20
August 710.00-992.00 3.27-3.35
September 780.00-995.00 0.64-0.65
October 832.00-1040.00 7.40
November 884.00-1085.00 2.73-3.10
December 850.00-1037.00 (4.37)-(4.75)
2022    
January 794.00-1010.00 -(2.55)
February 793.00-1053.00 4.00
March 880.00-1100.00 7.95-8.00
April 915.00-1160.00 3.25-3.40
May 915.75-1135.75* (5.73)-(5.75)

Note: *Prices for May 2022 are estimates
 

For more information, call the Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: [email protected]
Website: www.doe.gov.ph

 

_______
1 Platts news

Pages