Domestic prices for liquefied natural gas (LPG) in Russia halved in December compared to the previous month due to a surplus of fuel. About this reported the agency Reuters.
This surplus was created due to the sanctions of the European Union, which limited the export of LPG from Russia. Such data is provided by the Reuters agency based on its calculations.
EU sanctions against Russian ZNG entered into force on December 20. The restriction was proposed by Poland, one of the largest importers of Russian LPG.
LPG, which includes propane and butane, is commonly used as a fuel for cars, for heating or in the production of other petrochemical products.
The increase in LPG supplies to Russia's domestic market led to a sharp drop in wholesale prices: in December, the price fell to around 14 rubles ($140) per ton from 28 rubles at the end of November.
Export of CNG for Russia is more profitable, because supplies to Poland could bring up to 230 dollars per ton.
However, some types of Russian LPG are still allowed to be exported, but they represent only about a fifth of the total volume of LPG exports previously carried out by Russia.
According to industry representatives, Russia has increased LPG exports in recent months to China, Mongolia, Armenia, Georgia and Azerbaijan. Traders note that exports to China have the potential for further growth.
Russia also supplies LPG to Afghanistan, although market participants report payment problems: "We are ready to deliver it there, but our Afghan partners are ready to pay only in cash. And what should we do with this cash? This may cause additional questions and problems during her return to the Russian Federation." said one of the traders.
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