Iran June-loading LPG exports dip 28.5% from record levels in May to 696,000 mt

Iran's June-loading LPG exports were estimated at 696,000 mt, down 28.5% from the record 973,260 mt loaded in May, according to shipping sources, Platts cFlow ship and commodity tracking software and S&P Global Commodities at Sea, keeping Asia well supplied in July to offset reduced spot shipments from Saudi Arabia.

This took total shipments in the year's first half to almost 4.71 million mt.

The monthly average over January-June stands at 784,833 mt. Total exports for 2023 are projected at 9.42 million mt if the loading programs hold around current levels or more, according to S&P Global's calculations. This exceeds earlier projections by analysts of about 8.3 million mt.

As in previous months China was the dominant buyer of Iranian LPG for loading in June. Iranian LPG cargoes loading in June arrived in China throughout July at ports in southern and northeast China, according to CAS.

Iran's June-loading shipments ranged between 15,000 mt and 44,000 mt, with 15 vessels departing Assaluyeh port, shipped by companies including South Pars Gas Co., or SPGC; PARS and Palayesh Parsian Sepehr Co. or PPS -- a unit of Tadbir Energy and Parsian Sepehr, according to shipping sources.

Ship trackers showed cargoes were transferred ship to ship mostly off the Khor Fakkan area.

Seven vessels departed from Siraf port in June, with cargoes shipped by PPK-Tombak and Kangan Petro Refining Co., shipping sources said.

The ships departing Assaluyeh included Tower Rise, Sea Hermes, Danuta I, Double In, Akoya Gas, Godavari Gas, Yu I, Nereus 1, Gas Leader, Ourea, Eagle Pride, Artemis Gas, Sun 10, Cape Gas and Falcon, while vessels that left Siraf port included Oceanus Gas, Tris Gas, Kanha and Lady Sarah, according to shipping sources.

The vessels were mainly bound for Chinese ports, such as Lianyungang, Dongshan, Guangzhou, Raoping, Chaozhou, Dongguan, Humen, Fujian, Gulen, Zhoushan, Zhapu, Shanghai, Jiaxing, Zhuhai and Gaolan, according to CAS.

Some vessels were also seen in East and North Africa, Yemen, Iraq and South Asia, CAS showed.

Moving forward, ship broking reports showed several VLGCs fixed for "Iranian trade" via STS operation in July. Danuta I loaded via STS operations off Siri island's off port limits July 11 and discharged a full cargo to VLGC Gas Concept OPL Dubai. Tris Gas loaded a full cargo from an unknown LPG Carrier in Iraq's Umm Qasr anchorage July 15. Gas Gemini loaded via STS operations in Al Basrah anchorage July 11 and discharged a full cargo to VLGC Arrow OPL Dubai.

Rising output

Healthy exports from Iran loading over May and June came even as the producer revamped crude export facilities for an additional 1 million b/d in view of recent jumps in oil sales, the oil ministry news service Shana quoted Iranian Oil Terminals Co. as saying recently.

These came amid escalating tensions in the Middle East. The US has ordered marine air-ground task force deployment to the Persian Gulf July 20 following the positioning of the destroyer USS Thomas Hudner, and some F-35 fighters and F-16 fighters in the face of Iranian threats.

In April, the Financial Times reported that US authorities redirected the Suezmax Suez Rajan, allegedly loaded with Iranian crude and bound for China, to the US as part of sanctions enforcement, which could have prompted Iran's seizure and harassment of some oil-laden tankers over recent months, said analysts.

Since May, the US and 10 other nations have bolstered patrols around the Strait of Hormuz as counter measures. Iran's Revolutionary Guard has warned that it would hold responsible the US and any company that would unload an Iranian oil cargo off a seized ship anchored off the Texas coast, state news agency IRNA reported.

Rising LPG exports come with higher output in Iran, which analysts said has ramped up oil production since the start of 2023 as it is exempted from OPEC+ cuts due to US sanctions and driven by the South Pars gas field expansions. The producer also has several new refinery developments which will further boost LPG production in coming years.