Conference: Russia`s LPG Market 2017

Date: December 07–08, 2017

The 8th annual international conference «Russia’s LPG Market 2017», held in Moscow on December 7-8, 2017, has successfully concluded its work.

Gazprom Gazenergoset – general partner of the conference

Thomson Reuters – strategic partner of the conference

Avestra Group – official partner of the conference

Petroleum Trading – panel discussion partner «Russia's LPG market players vs the Customs Union Technical Regulation 018/2011 «On Safety of Wheeled Vehicles»: Drafting a joint resolution to initiate modifications»

Hexagon Ragasco AS – session partner «Using LPG in domestic households and as motor fuel»

VL GAS Company – session partner «LPG trade prospects in the Russian Far East: LPG exports to Southeast Asia»

Supported by Kavkaz-Diesel Company, UNICON 1520

Over 200 delegates from Russia, China, Poland, Serbia, Norway, Great Britain, Estonia, the Czech Republic, Ukraine, Belarus and Kazakhstan attended the 8th annual international conference «Russia’s LPG Market 2017».

The annual conference for LPG market players is held each December, organized by MAXConference together with its standing partner Gazprom Gazenergoset.
The presentation by Dmitry Mironov, CEO of Gazprom Gazenergoset, summed up the past year, with the next year’s forecast, and focussed on domestic LPG pricing. «None of the market players is happy about the current pricing process, which is not at all transparent,» said Mr Mironov. There is a need for transparent market pricing tools for LPG. Gazprom Gazenergoset advocates the creation of PBSURGAZP fixing that will reflect the LPG price at exchange and OTC trades and can be the basis of propane butane futures contracts.

Dmitrii Styrkas, director oil markets and downstream at IHS Markit, presented a review of global LPG pricing. Mr Styrkas believes that a significant increase in US exports has drastically transformed LPG trade flows. The review also highlights the key features of the LPG markets in the United States, Japan, Asia and Northwest Europe. IHS forecasts LPG absolute prices recovery alongside crude price in the long term.

Ivan Kudinov, UPECO analyst, gave an analysis of the Ukrainian LPG market in the wake of export restrictions by Russia. According to Mr Kudinov, the Ukrainian market follows the Polish market development pattern, although with a substantial delay. «Gas consumption growth is driven by imports as the production capacities are standing idle. Introduction of the European automotive fuels standard EN 589 in Ukraine in 2018 is likely to drive the gas price up», he said. Ukraine has begun working closely with Kazakhstan, with first gas supply contracts already signed.

Ivan Altynov, director of LPG division at Avestra Group, then spoke about the LPG supply development in the Russian Far East via the Far East Gas terminal. «The Far East Gas terminal is currently the only channel for importing LPG and other hazardous petrochemicals from Russia to China. A transshipment terminal for liquid chemical is due to be commissioned in Manchuria in 2020. The terminals strengthen the Russian-Chinese cooperation in the energy sector», Mr Altynov said.

For the purposes of shipping natural gas by rail, Avestra and UNICON 1520 executed an agreement outlining their joint activities aiming to promote the transportation of oil, gas and chemical products by new generation tank cars and tank containers (either mode of transportation may be selected depending on shipment requirements). According to Mikhail Marushkin, project director at UNICON 1520, RPC UWC, a holding corporation whereof UNICON 1520 is a member, focuses on the design and manufacture of freight cars with improved technical and economic performance. As part of his report, Mr. Marushkin presented the draft design of a 111 cu m tank car. The speaker also highlighted the importance of the forum for promoting constructive negotiation process and emphasised that all feedback gathered at these meetings will be submitted to RPC UWC’s engineering center.

A panel discussion, initiated by Maxim Diachenko, managing partner at Petroleum Trading was also held during the conference in order to formulate a joint resolution urging the Russian ministry of industry and trade and ministry of energy to modify the customs union technical regulation «On safety of wheeled vehicles».

The session on LPG use in the petrochemical industry drew particular interest. «Russia still hasn’t got an integrated petrochemical taxation. And there are petrochemical surpluses on the market as a result,» said Ksenia Katerina, head of SIBUR analytical centre. She also spoke about the construction of ZapSibNeftekhim, the largest petrochemical complex in Russia, which is implemented under a major Government initiative as per the gas and petrochemical industry development programme through 2030.

Conference participants were unanimous in supporting the relevance of the Conference theme and offered a broad-based momentum to resume the discussions next year.

MAXConference offers special thanks to our speakers, moderators and discussants.

Your ideas and suggestions about the next conference’s agenda are very welcome at +7.495.745.07.40 or

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