Liquefied propane market in Russia

Earlier Report Observations

The Russian liquefied propane market from 2018 was initially supported by rising domestic demand, particularly from the gas motor fuel sector, which nearly doubled its usage due to state support. However, in 2019, the market volume temporarily contracted to 3 958 thousand tons as repair works at key plants, such as the Astrakhan gas processing facility, reduced production. The situation shifted in 2020 when the COVID-19 pandemic led to a sharp drop in exports, redirecting significant volumes to the domestic market and raising its size to 4 588 thousand tons.

From 2021, geopolitical factors became dominant. Sanctions and reduced shipments to traditional markets like Poland and Ukraine drastically cut exports, which, combined with steady domestic demand, fueled substantial market growth. By 2022, exports had fallen to 943 thousand tons, allowing the domestic market to expand to 6 532 thousand tons. This trend continued into 2023, where the EU embargo further constrained exports to Europe, pushing the market volume to 7 102 thousand tons despite some segment stagnation.

In 2024, the market continued to be shaped by sanctions and the EU embargo, leading to a redirection of export flows to Asia and shifts in price dynamics, although comprehensive market volume data for the year has not yet been published.

Production liquefied propane in Russia

In kind, 2017-2020, K t

Russia's liquefied propane production declined for the third year in a row. In 2020, production stood at 7 190 thousand tonnes, down 3.3% from the previous year. Over the period from 2017 to 2020, production fell by 12.8%, which translates to an average annual decline of 4.5%.

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

Exports liquefied propane from Russia

Exports in kind, K t

Russia's liquefied propane exports dropped for the second consecutive year. In 2020, exports totaled 2 607 thousand tonnes, a 25.4% decrease year-on-year. From 2017 to 2020, exports fell by 16.2%, averaging a 5.7% annual decline. The highest export volume was recorded in 2018 at 3 720 thousand tonnes, which also saw the largest increase of 19.6%.

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

From 2017 to 2020, Poland, Ukraine, and Sweden were the key destinations for Russia's liquefied propane exports in volume terms. Poland accounted for 45.6% of exports, Ukraine for 12.0%, and Sweden for 8.0%, together making up 65.6% 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

The value of Russia's liquefied propane exports decreased for the second year running. In 2020, exports reached 777 million US dollars, down 37.1% compared to the previous year. Between 2017 and 2020, export value declined by 26.4%, with an average annual drop of 9.7%. The peak was in 2018 at 1 665 million US dollars, which also experienced the largest increase of 57.6%.

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

In the 2017–2020 period, Poland, Ukraine, and Sweden were the main destinations for Russia's liquefied propane exports in value terms. Poland held a 44.7% share, Ukraine 12.0%, and Sweden 8.4%, collectively accounting for 65.1% 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 propane to Russia

Imports in kind, K t

The import market for liquefied propane in Russia showed significant volatility from 2017 to 2020. In 2018, imports hit a low of 1 thousand tonnes, with the largest decline that year at 2.4%. The following year, 2019, saw the largest increase of 637.8%. By 2020, imports rose to 17 thousand tonnes, a 172.2% jump from 2019, with the peak-to-trough difference between 2018 and 2020 reaching 20 times.

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

From 2017 to 2020, Kazakhstan dominated Russia's liquefied propane imports in volume terms, accounting for 92.0% of total imports.

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 propane import value was highly volatile between 2017 and 2020. In 2018, imports were at their lowest at 1 million US dollars, with the largest decline of 5.5% that year. 2019 recorded the largest increase of 371.0%. By 2020, imports surged to 6 million US dollars, up 118.6% year-on-year, with a 10.3-fold gap between the 2018 low and the 2020 high.

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

Over the 2017–2020 period, Kazakhstan was the leading supplier of liquefied propane to Russia in value terms, with an 80.2% share of total imports, while the remainder was distributed among various other countries.

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

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