Liquefied butanes market in Russia

Earlier Report Observations

The Russian liquefied butanes market expanded from 5.8 million tons in 2018 to 6.4 million tons in 2020. This growth was primarily driven by the increasing fleet of vehicles running on propane-butane fuel, particularly light commercial vehicles, which boosted consumption. In 2019, the abolition of state price regulation further stimulated market activity. Although the COVID-19 pandemic and movement restrictions in 2020 slowed the pace, the continued rollout of gas filling stations helped sustain demand.

Between 2021 and 2022, the market continued to grow, reaching 6.7 million tons by 2022. An accident at a Gazprom plant in Novy Urengoy in August 2021 caused a temporary price spike, but producers redirected volumes from export to the domestic market, stabilizing supply. The introduction of new GOST standards for technical propane-butane in 2022 updated quality and labeling requirements, while the overall trend toward greater self-sufficiency supported production growth.

In 2023, the market volume increased further to 6.9 million tons, maintaining the upward trajectory seen in previous years.

Production liquefied butanes in Russia

In kind, 2017-2020, K t

Russia's liquefied butanes production has been growing for three consecutive years. In 2020, the country produced 6 920 thousand tons, showing a modest increase of 1.8% compared to 2019. Looking at the period from 2017 to 2020, production rose by 11.5%, which translates to an average annual growth rate of 3.7%.

Annual dynamics of production in Russia in kind, 2017-2020, K t

Exports liquefied butanes from Russia

Exports in kind, K t

In 2020, Russia exported 495.6 thousand tons of liquefied butanes, marking a moderate year-on-year increase of 7.8%. However, over the 2017-2020 period, exports declined by 21.3%, with a compound annual growth rate of -7.7%. The lowest export volume was recorded in 2019 at 459.9 thousand tons, while the peak occurred in 2018 with 656.6 thousand tons. The most significant drop was observed in 2019, when exports fell by 30.0%.

Annual dynamics of product's exports from Russia in kind, 2017-2020, K t

From 2017 to 2020, Ukraine, Finland, and Belarus were the top destinations for Russia's liquefied butanes exports in volume terms. Ukraine accounted for 20.2% of exports, Finland for 17.1%, and Belarus for 16.5%. Together, these three countries represented 53.9% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Russia in kind, 2017-2020

Exports in value, M $ US

Russia's liquefied butanes exports in value terms declined for the second year in a row. In 2020, exports totaled 143.5 million US dollars, down 4.4% from the previous year. Over the 2017-2020 period, export value decreased by 32.7%, with a compound annual growth rate of -12.4%. The highest value was recorded in 2018 at 280.8 million US dollars. The largest decline occurred in 2019 with a 46.5% drop, while the biggest increase was in 2018, rising by 31.7%.

Annual dynamics of product's exports from Russia in value, 2017-2020, M $ US

Between 2017 and 2020, Ukraine, Finland, and Belarus remained the leading buyers of Russian liquefied butanes in value terms. Ukraine held a 21.5% share of exports, Finland 15.7%, and Belarus 15.3%. Collectively, these three markets accounted for 52.4% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Russia in value, 2017-2020

Imports liquefied butanes to Russia

Imports in kind, K t

After two years of growth, Russia's liquefied butanes imports in volume terms declined. In 2020, imports reached 31.1 thousand tons, a decrease of 2.0% compared to the previous year. However, over the 2017-2020 period, imports increased by 77.1%, averaging an annual growth rate of 21.0%. The peak import volume was in 2019 at 31.7 thousand tons, with the largest increase occurring in 2018 at 51.4%.

Annual dynamics of product's imports to Russia in kind, 2017-2020, K t

From 2017 to 2020, Kazakhstan and South Korea dominated Russia's liquefied butanes imports in volume terms, consistently accounting for 98.2% of total imports. This indicates a highly concentrated market with a long tail of smaller suppliers.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Russia in kind, 2017-2020

Imports in value, M $ US

Russia's liquefied butanes imports in value terms have increased for three consecutive years. In 2020, imports amounted to 15.9 million US dollars, showing a moderate gain of 4.1% over the past year. Over the 2017-2020 period, import value surged by 157.6%, with a compound annual growth rate of 37.1%.

Annual dynamics of product's imports to Russia in value, 2017-2020, M $ US

During the 2017-2020 period, Kazakhstan and South Korea were the primary sources for Russia's liquefied butanes imports in value terms, jointly representing 94.7% of total flows. The remaining share was distributed among other markets.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Russia in value, 2017-2020