Global energy and commodity price reporting agency Argus has launched 10 new freight price assessments for tankers transporting liquefied petroleum gas (LPG). These prices are a response to market demand for greater transparency in the growing and increasingly complex global trade in LPG, which comprises butane and propane.
The United States continues to dominate the global LPG export market and increasing amounts are flowing from the U.S. Gulf and Atlantic coasts to destinations in Europe and South America, driven by demand in the residential and autogas sectors.
Argus has worked with industry participants to develop prices that accurately reflect freight costs for LPG exports from the US to Brazil, Chile, Peru, Morocco and northwest Europe. Rates are available for very large gas carriers and medium gas carriers.
Argus has also launched VLGC and MGC freight rates on the Ras Tanura to New Mangalore route – Saudi Arabia to India – to support participants engaged in the swelling LPG trade between the Middle East and the sub-continent.
Argus Media Chairman and Chief Executive Adrian Binks said: "The LPG industry seeks to better understand and manage its exposure to volatile freight costs. These assessments will help it by both improving overall transparency and providing necessary pricing tools on the growing trading volume from the U.S. and the Middle East."
