Argus LPG and Petrochemical Feedstocks 2016

Strong LPG demand growth in Asia-Pacific has prompted buyers to look to the US for new sources of supply. Propane is used across the region, most significantly as a household cooking fuel in developing countries and as an alternative fuel for diesel. More recently, growth in the petrochemical sector because of PDH developments in China and South Korea has emerged as a leading driver of demand. Consumption has been further boosted by LPG's lower prices in comparison to naphtha. The lifting of sanctions on Iran means the country is poised to become one of the largest Middle East exporters, with an eye on Asia.