LPG Dynamics in Focus
Sept. 22, 2023
The VLGC owners have experienced an extremely strong year, with rates achieving their highest levels since 2015. One of the primary catalysts behind this robust performance is the burgeoning demand for LPG in the Far East, particularly in the context of Propane Dehydrogenation (PDH) plants which convert propane into propylene and further to plastics. Platts has reported the inauguration of two PDH plants in China during the first 8 months in 2023, and an additional five plants to become operational by year-end, each boasting 600-660,000 mt/year capacity.
On the LPG supply side, the two primary load regions for ...