News Code : 44203

Petrotahlil - Russian petrochemical giant Sibur plans to divert supplies of liquefied petroleum gas to China from Belarus and Poland as the Asian country starts to recover from the coronavirus outbreak, according to traders and data on Thursday.

Sibur’s LPG exports to China have been irregular and small-scale in recent years. However, China has started to recover from its coronavirus epidemic and has partially lifted lockdowns. At the same time the coronavirus crisis in Europe has yet to peak.

Sibur may supply China with over 8,000 tonnes of LPG this month, according to industry sources. LPG is mainly used as fuel for cars, heating and to produce other petrochemical.

One trader said Russian oil producer Lukoil was also considering LPG exports to China.

Sibur and Lukoil did not respond to requests for comments.

Traders also said that Sibur was looking to ship some LPG volumes via the Russian Baltic Sea port of Ust-Luga.

Sibur plans to cut direct LPG supplies to Poland by around 15,000 tonnes and to Belarus by 30,000 tonnes in April compared with March, according to the Refinitiv Eikon data.

At the same time it may raise LPG flows to Ust-Luga by around 30,000 tonnes, compared with the recent monthly average, to between 150,000 and 160,0000 tonnes, traders said. 

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