Liquefied petroleum gas (LPG) holds an important place in Russia's fuel, energy and petrochemical complex. Unlike pipeline gas, LPG is a mixture of propane, butanes and associated hydrocarbons converted to a liquid state for storage and transportation under pressure. Russia is among the world's top five LPG producers and remains a key exporter of this product. For the B2B segment, LPG matters simultaneously as motor fuel, as feedstock for petrochemicals and as household fuel for gasifying remote territories not connected to main gas pipelines.

Classification and Quality Standards

Requirements for fuel LPG in Russia and EAEU countries are established by GOST 34858-2022 "Hydrocarbon liquefied fuel gases. Specifications", which replaced GOST R 52087-2018, GOST 20448-2018 and GOST 27578-2018. The standard defines LPG as a mixture of hydrocarbons (propane, propylene, butanes, butylenes and butadienes with the presence of methane, ethane, ethylene and pentanes) converted to a liquid state.

Depending on the content of the main component and the intended use, five grades of fuel LPG are distinguished:

  • PA (automotive propane) - motor fuel for road transport. Propane mass fraction - 85.0±10.0%, total unsaturated hydrocarbons - not more than 6.0%, octane number - not less than 89.0.
  • PBA (automotive propane-butane) - motor fuel. Sum of propane and propylene - not less than 75.0%, sum of butanes and butylenes - not more than 60.0%.
  • PT (technical propane) - household and industrial consumption as fuel. Sum of propane and propylene - not less than 75.0%.
  • PBT (technical propane-butane) - household and industrial consumption. Sum of butanes and butylenes - not less than 60.0%.
  • BT (technical butane) - industrial use.

Key controlled parameters include component composition, volume fraction of liquid residue at plus 20 °C (not more than 0.70-1.80% depending on grade), saturated vapour pressure at plus 45 °C (not more than 1.6 MPa) and at minus 20 °C or minus 30 °C (not less than 0.07-0.16 MPa), mass fraction of total sulphur and hydrogen sulphide, content of free water and alkali, odour intensity and octane number. For climatic regions where winter temperatures drop below minus 20 °C, automotive LPG with a propane mass fraction of at least 85% is used. From 15 January 2025, determination of total sulphur became mandatory, and stricter norms for sulphur and hydrogen sulphide come into force in 2030.

Sampling and test methods are regulated by separate standards, including GOST 10679, GOST 28656, GOST 22986 and GOST 22387.5. For export supplies, importing country requirements, as well as phytosanitary and customs procedures, additionally apply.

Production: SIBUR and Gazprom

According to SIBUR's presentation for the Russia's LPG Market 2025 conference, Russian LPG production in January-October 2025 amounted to 12.7 million tonnes, corresponding to the same period in 2024. The largest commercial producers remain SIBUR with about 6 million tonnes and Gazprom with 1.9 million tonnes. This concentration means that a significant part of market supply is formed by a limited circle of players, and contractual work with them requires understanding their production and logistics capabilities.

SIBUR remains Russia's largest LPG producer and exporter. The company doubled LPG loadings through the Baltic port of Ust-Luga in January-May 2025 compared to the same period in 2024 - to 418 thousand tonnes - and resumed supplies to India. At the St. Petersburg exchange, SIBUR increased LPG sales by 7% in 2025 to 0.77 million tonnes, with total exchange sales of 2.32 million tonnes (an 8% decline year-on-year).

The second important production centre is Gazprom's gas processing and gas chemical capacity, including the Amur GPP. In November 2025, the launch of the fifth of six Amur GPP lines was planned, and shipments of ethane and LPG from the Amur GPP to SIBUR's Amur Gas Chemical Complex were expected in the second half of 2026. This strengthens the eastern vector of LPG production and export.

Domestic Consumption and the Fuel Segment

Russian domestic LPG consumption in January-October 2025 amounted to 9.9 million tonnes, about 300 thousand tonnes, or 3.5%, less than in the same period of 2024. The decline is explained primarily by reduced demand from the petrochemical industry. At the same time, LPG shipments to the fuel segment grew by 5% due to a price environment favourable to consumers relative to gasoline.

The domestic demand structure includes petrochemicals, household consumption, gas motor fuel and industrial use. For B2B suppliers, it is important that the fuel segment remains the most dynamic: with high gasoline prices, LPG becomes an economically attractive alternative for vehicle fleets, municipal equipment and freight transport. However, the development of this segment is limited by the gas filling infrastructure network and the fleet of gas cylinder vehicles.

The domestic market also has exchange trading of LPG, which allows producers and consumers to form market price indicators. In 2025, total exchange sales amounted to 2.32 million tonnes, while SIBUR's share of exchange sales grew. For buyers, the exchange channel can be a hedging tool and a way to form a transparent price, but it requires understanding of trading rules and shipment logistics.

Exports: The Shift to Asia

Exports remain a key driver of the Russian LPG market. By the end of 2025, Russia exported 3.86 million tonnes of LPG, 2.3% more than a year earlier. The key trend of the year was the redistribution of supplies from the European direction to Asia. Whereas Europe and Asia previously occupied roughly equal shares, Asian markets now account for about 76% of Russian LPG exports.

The largest buyer was Turkey - 904.1 thousand tonnes, 12% more than in 2024. China more than doubled imports of Russian LPG - from 407.3 thousand tonnes in 2024 to 855.6 thousand tonnes in 2025. Supplies to Central Asian countries doubled - from 309.2 thousand tonnes to 671.7 thousand tonnes. Afghanistan increased purchases by 42% - to 463.1 thousand tonnes. Supplies to Mongolia declined by just over 1% - to 44.5 thousand tonnes.

Exports in the European direction, excluding Turkey, halved in 2025 - from 1.88 million tonnes to 920.4 thousand tonnes. EU countries imported small volumes, and in 2026 even these supplies ceased. EU sanctions on imports of Russian LPG came into full force on 20 December 2024, which triggered the reorientation. According to Petromarket estimates, China's share in the structure of Russian LPG exports grew from 13% to 24%, Turkey's from 15% to 20%, Central Asian countries from 6% to 18%, Afghanistan from 9% to 14%, while Poland's share fell from 28% to 4%.

Supplies to Central Asia and Afghanistan in January-November 2025 almost doubled - to 1.016 million tonnes. The main suppliers in this direction were Gazprom plants (92 thousand tonnes), SIBUR (76 thousand tonnes), Lukoil (62 thousand tonnes) and Rosneft (43 thousand tonnes). Afghanistan became the largest buyer of Russian LPG in the region, partially replacing supplies from Iran, which is under US sanctions.

Export LPG prices are shaped by Saudi Aramco and Algerian Sonatrach quotations, as well as the demand balance in Asia. The average SPBT quotation on an FOB Black Sea basis in February-March 2025 was about USD 508 per tonne, while at certain periods the quotation for technical propane-butane in Azov-Black Sea ports fell to USD 422 per tonne. In May 2025, the Russian LPG export duty was zeroed, supporting the economics of export supplies.

Logistics and Infrastructure Constraints

LPG logistics is a critical element of the industry. Within Russia and for export, LPG is transported mainly by rail tank cars, as well as by road tankers and pipelines over short distances. Marine shipments use specialised gas carriers and transshipment terminals.

Key constraints in the eastern direction include the lack of sufficient marine terminals for LPG transshipment in the Far East. As of 2025-2026, increasing supplies to China was possible only by rail through the congested Zabaikalsk border crossing and by road. This does not allow Russia to compete with large marine tankers from the US and Persian Gulf countries on equal terms. The situation is aggravated by an acute shortage of rail tank cars, the forced write-off of ageing fleets and regular long delays at border crossings.

Infrastructure projects are being implemented to address these constraints. An export terminal for transshipment of 150 thousand tonnes of liquefied gas has been launched in Primorye, including a specialised railway station for receiving LPG in tank cars and a marine berth capable of receiving gas carriers with a displacement of up to 50 thousand tonnes. At the end of 2025, an LPG terminal was planned for launch at the port of Sovetskaya Gavan (Khabarovsk Krai). These projects should partially relieve constraints in the eastern direction, but their capacity does not yet cover potential demand.

In the western direction, Baltic ports, primarily Ust-Luga, play a key role, through which SIBUR increased loadings. However, after the introduction of EU sanctions, the western direction has largely closed for Russian LPG, and ports are reorienting to other cargoes or to transshipment for subsequent delivery to third countries.

Regulation and Prospects

Regulation of LPG exports in Russia is tightening. The government has considered introducing an embargo on LPG exports for trading companies, oil depots and mini-refineries, and the FAS proposed banning LPG exports during scheduled refinery repairs to saturate the domestic market. Restrictions on exports of LPG used as motor fuel are also being discussed. For producers, this means that export strategy must take into account regulatory risks and the possibility of short-term restrictions.

The industry's prospects are linked to further growth of supplies to Asia, primarily China, which remains the main growth driver. Russian LPG exports to China are forecast to grow by up to 40% in 2026 and reach about 1.125 million tonnes. However, realising this potential depends on infrastructure development in the east of the country - organising rail border crossings with China and building port terminals in the Far East. Supplies to Central Asian countries are likely to remain at the current level, while Turkey will remain a large but politically sensitive market.

For buyers, not only price per tonne matters but also grade composition stability, saturated vapour pressure, sulphur content, delivery terms, supply chain reputation and logistics availability. Understanding standards, technological differences and the structure of export flows helps reduce risks and build long-term contracts with Russian producers.

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If you are looking for Russian LPG, need advice on grade selection, quality parameters and supply organisation, please contact our team at info@apptrade.ru. We will help you find the right product, verify documentation and organise supply.

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