Ukraine LPG prices jump 15% as Kazakh Tengizchevroil halts supplies

Kiev, May 29 - Neftegaz.RU. According to Platts, Ukraine's wholesale LPG prices rose about 15% over the weekend after Kazakhstan-based Tengizchevroil suspended supplies to the country.

Tengizchevroil , which accounted for 19% of Ukrainian LPG imports in April, suspended supplies on Friday to comply with Russia's ban on petroleum exports to Ukraine starting June 1, sources said.

The LPG price quoted by Geo Alliance, a local wholesale trader, rose to Hryvnia 21,700/mt on May 27, up from Hryvnia 18,790/mt on May 22.

"They still do not have permission from Russiato cross the border [after June 1] so the Kazakh company has decided to wait," a source at a major Ukrainian trading company said on May 28. "No one knows exactly what's going to happen in June."

Tengizchevroil is the 1st Kazakh company to suspend supplies, but a number of smaller Kazakh companies will probably follow suit, the sources said.

Tengizchevroil delivered 21,500 mt of LPG to Ukraine in April, A-95 said. The company supplied 208,300 mt of LPG to Ukraine in 2018, 16% of total imports, it said.Other smaller Kazakh companies delivered a total of 48,700 mt of LPG to Ukraine in 2018.

Russia last month banned crude oil exports as well as a number of oil products to Ukraine on June 1. The list of banned products includes crude oil, ethylene, propylene, bitumen, butadiene, coke, fuel oil, ethane, butane and isobutane, but excludes gasoline and diesel.

Exports of naphtha, gasoline, diesel and LPG will be allowed subject to permission from Russia's economy ministry.

Author: Alexander Bor