Mideast Gulf LPG spot trade flourishes led by Qatari supplies

SINGAPORE, Aug. 5, 2015 /PRNewswire/ -- LPG volumes traded outside of term agreements in the Mideast Gulf are on track to double this year compared with 2014, as increasing production from Qatar and North America gives consumers across Asia-Pacific the option to secure more spot cargoes available at short notice.

More than 1.2mn t of propane and butane has been exported in spot cargoes so far this year from Middle East ports, compared with about 1mn t for the whole of 2014. LPG buyers in Asia-Pacific are increasing spot imports from the Middle East while reducing their term commitments, after the shale revolution allowed US suppliers to increase their market share in countries such as Japan and South Korea during the past two years.

Increasing LPG trade in the Middle East open market has led to the emergence of a new trading segment, independent of prices set by producers for term contracts. This emerging market has also boosted transparency in price discovery, allowing global energy and commodity news and price reporting agency Argus to launch the Argus Middle East Index (AMEI) this month. AMEI is a daily price for propane and butane sold from Middle East ports based on market activity.

"We are delighted to see liquidity developing in this market and hope that the transparency that Argus brings to the pricing of these spot volumes will serve as a springboard for further market development," Argus Media chairman and publisher Adrian Binks said.

Argus produces the Argus Far East Index™ (AFEI™), the leading spot daily benchmark price for delivered LPG cargoes to the northeast Asian market.

London Seana Lanigan+44 20 7780 4272[email protected]

HoustonGabriela Alcocer+ 1 713 968 0000[email protected]

SingaporeJim Nicholson+65 6496 9960[email protected]

About Argus Media

Argus is an independent media organisation with more than 700 full time staff. It is headquartered in London and has offices in each of the world's principal commodity centres. Its main activities comprise publishing market reports containing price assessments, market commentary and news, and business intelligence reports that analyse market and industry trends.

More than half of Argus employees are commodity journalists who specialise in reporting news and price information relating to physical energy and related commodity markets. They operate according to a rigorous Editorial Code of Conduct and a compliance and ethics policy that align with best journalistic practice, including the avoidance of conflicts of interest.

Argus is a leading provider of data on prices and fundamentals, news, analysis, consultancy services and conferences for the global crude, oil products, natural gas, electricity, coal, emissions, bioenergy, fertilizer, petrochemical, metals and transportation industries. Data provided by Argus are widely used for indexation of physical trade. Companies, governments and international agencies use Argus information for analysis and planning purposes.

Argus has 20 offices globally, including London, Houston, Washington, New York, Calgary, Rio de Janeiro, Singapore, Dubai, Beijing, Tokyo, Sydney, Moscow, Astana and other key centres of the commodity industries. Argus was founded in 1970 and is a privately held UK-registered company.

ARGUS, the ARGUS logo, ARGUS MEDIA, ARGUS DIRECT, ARGUS OPEN MARKETS, AOM, FMB, DEWITT, JIM JORDAN & ASSOCIATES, JJ&A, FUNDALYTICS, METAL-PAGES, METALPRICES.COM, Argus publication titles and Argus index names are trademarks of Argus Media Limited.

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SOURCE Argus Media