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Moscow Considers to Resume LPG Supplies Export to Afghanistan

AT Monitoring Desk

KABUL: Moscow is considering to resume the liquefied petroleum gas (LPG) supplies to Afghanistan in March, rail data in Refinitiv Eikon showed, after they lost traditional westbound routes due to the Ukraine conflict.

Russian producers have not supplied LPG to Afghanistan since mid-2020 amid coronavirus-related restrictions and weak profitability.

The Gas Processing Plant (GPP) in the Russian city of Orenburg owned by Kazrosgaz, the joint venture of Kazakh state-owned Kazmunaigaz and Russia’s Gazprom, plans to ship to Afghanistan 10,000 tonnes of LPG, rail data showed.

Kazrosgaz could not immediately be reached for comment.

Kazrosgaz used to ship LPG cargoes from the Orenburg plant by rail mainly to the Ukrainian port of Izmail and to Belarus, but the Ukraine conflict prompted the company to look at alternative routes.

Lukoil’s Permnefteorgsintez and Omskiy Kautschuk plants plan to export to Afghanistan in March more than 10,500 tonnes of LPG, the rail data showed.

Russian rail has banned LPG shipments to Ukraine and Russian Azov Sea and Black Sea ports, which used to handle a large part of LPG exports from Russia and Kazakhstan. LPG exports to Belarus were suspended due to overstocking in the country.

Russian LPG producers considered redirecting LPG volumes to Afghanistan as exports have become more profitable amid falling prices in Russia’s domestic market.

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