According to the latest info from the Russian Ministry of Energy, LPG exports from Russia are on the rise, the result of the temporary removal of export tariffs on Russian LPG production. 

LPG exports from Russian during the first six months of 2009 totaled 1.07 million metric tonnes, up from 731,800 tonnes for the same period in 2008.    Sibur, Russia’s largest petrochemical firm, was Russia’s largest producer and exporter of LPG during this time frame.

Triggered by the economic crisis, Russian LPG producers won a temporary concession from the Russian government to abandon export duties to help assist them in moving surplus production, mainly via exports to European nations.  The concession, which amounts to $90 per tonne, is costing the Russian government an estimated $15 million dollars U.S. per month.  The temporary exemption of export tariffs applies to LPG, propane, butane, propylene, ethylene and liquefied petroleum gases (LPG).

Five Largest Russian LPG Producers – 1st Half 2009
(Thousand Metric Tonnes)

Source:  Russian Energy Ministry