Gas & Petrochemicals
LPG — Propane & Butane
LPG is principally propane and butane, traded for residential fuel, petrochemical feedstock, autogas and industrial applications.
MARKET REFERENCES
How the market commonly references price
There is rarely one universal price for a physical commodity. Commercial value depends on the benchmark, specification, origin, destination, timing and logistics agreed between buyer and seller.
- Saudi Aramco Contract Price (CP) — propane / butane
- Asia Far East Index (FEI) references
- Regional CFR / FOB LPG assessments
TYPICAL COMMERCIAL STRUCTURE
How physical pricing is often built
A widely used term structure in Asia and the Middle East is Saudi Aramco CP ± negotiated premium/discount. Delivered pricing can be expressed as CP + premium + freight, while spot Northeast Asia cargoes may reference FEI-related values.
PRICE DRIVERS
What moves the physical differential?
- Propane/butane split
- Petrochemical cracking economics
- Seasonal heating demand
- US / Middle East export supply
- VLGC freight
PHYSICAL TRADE
Commercial considerations
FOB Middle East, FOB US Gulf and CFR Northeast Asia are major trading bases. Commercial formulas vary by origin and contract.
The examples on this page describe common market conventions at a high level. Actual contracts can use different pricing periods, assessments, quality adjustments, Incoterms and negotiated differentials.
Market methodology reference: view source / methodology
PHYSICAL COMMODITY BROKERAGE
Discuss a LPG — Propane & Butane requirement.
Share the specification, quantity, origin or destination, delivery basis and timing.