Export of liquefied gas

Liquid Gas Consumption in the World

Statistics indicate that the consumption of liquefied petroleum gas (LPG) is on the rise globally. This growth is driven by an increasing demand for clean and low-carbon fuels, particularly in the residential and industrial sectors. Countries like China and India are major consumers due to the development of petrochemical industries and the rising demand for LPG across various sectors. Additionally, LPG has gained special significance as an alternative fuel in remote areas and countries with limited access to natural gas networks.

 Iran, benefiting from vast gas and oil resources and a skilled workforce, has managed to become the eighth-largest exporter of liquefied gas in the world. The export of liquefied gas plays a crucial role in generating foreign currency and strengthening the country’s economy, and it can pave the way for further development and progress in our beloved homeland. These economic opportunities enable Iran to have an active presence in global markets. But which countries are the largest target markets for liquefied gas from Iran? And how can one enter this lucrative market?

Countries Importing Iran’s Liquefied Gas

The countries importing liquefied gas (LPG) from Iran include China, India, Turkey, Pakistan, Afghanistan, and other regional countries. We will further examine China as the largest importer, as well as Afghanistan and Pakistan as the closest importers of gas from Iran.

China: The Largest Importer of LPG from Iran

 The largest importer of liquefied petroleum gas (LPG) from Iran is China. In 2023, China purchased nearly 78 percent of Iran’s total LPG exports, amounting to 8.9 million tons. One of the main reasons for China’s extensive imports from Iran is the competitive discounts and lower prices compared to other Middle Eastern suppliers. China uses this LPG to develop its petrochemical sectors, particularly in PDH (propane dehydrogenation) units. Due to its strong transportation infrastructure and a large fleet of VLGC (very large gas carriers), China easily imports LPG from Iran.

Pakistan

Pakistan is one of the largest importers of liquefied petroleum gas (LPG) in the world, with a significant portion of this consumption used for domestic and transportation purposes. Given the country’s dependence on LPG and its geographical proximity to Iran, there is a golden opportunity to increase LPG exports to this market. Kian Petroleum Company, with access to loading points from both state-owned and private refineries, including the Yazd and South Pars refineries, facilitates direct shipments to the Rimdan and Pishin border terminals for exports to Pakistan.

Afghanistan

Afghanistan also supplies a significant portion of its energy, including liquefied petroleum gas (LPG), from foreign countries such as Iran. The refineries in Yazd, South Pars, and Isfahan are the main suppliers of LPG for this country. The transportation of this product is carried out through the Dogharoun and Mahirud border terminals, which are the main crossings between Iran and Afghanistan. Given the close geographical location and the possibility of road transport, Afghanistan could also be a suitable option for increasing LPG exports from Iran, providing an economic opportunity for exporters.

Ways to secure LPG for export

Purchasing from the export ring of the Energy Exchange

The Energy Exchange is a sensitive and complex market, and individuals should be familiar with the process of buying LPG from the exchange before entering this market. This platform is particularly suitable for those who intend to purchase liquefied gas in large volumes. Since these buyers can acquire LPG at wholesale rates, this method is highly economical and desirable for exporters. In this market, access to large quantities of liquefied gas at competitive prices is a key advantage for traders and exporters. The table below shows the amount of liquefied gas supplied by various companies in Iran in the international ring of the Commodity and Energy Exchange during the months of Tir and Mordad 1403:

Company Name	Tir	Mordad
South Pars Gas Company	50000	120000
Imam Khomeini Shazand Oil Company	0	100000
Persian Gulf Star Oil Company	20000	47000
Isfahan Oil Refining Company	18000	16000
Fajr Jam Gas Refining Company	1500	1500
Abadan Oil Refining Company	12000	24500

Purchasing from Supplier Companies

 If your order is below the minimum purchase amount stated in the offering notice, it is recommended to collaborate with a reliable gas supplier company. At Kian Petroleum, we provide liquefied gas transparently and without additional costs. We also ensure your peace of mind with safe transportation, guaranteeing quick and hassle-free delivery.

Exports and Transportation Issues

Iran’s liquefied gas exports are carried out through two methods, maritime and land, depending on the geographical destination and the existing infrastructure in the destination country. Exports to China are conducted via sea using VLGC (Very Large Gas Carrier) ships due to the geographical distance and the advanced infrastructure of that country. These ships are loaded at major Iranian ports such as Assaluyeh Port and Imam Khomeini Port. They are equipped with complex safety systems to withstand the hazards posed by changes in temperature and pressure at sea.

The transportation of liquefied petroleum gas (LPG) by land is carried out using special tankers that must meet specific requirements to ensure safety and quality during transport. For example, these tankers should be equipped with advanced safety systems such as ABS brakes and an anti-rollover program (RSP). The tanks should be made of appropriately thick steel plates, and hazardous materials labels must be displayed on the tankers. Additionally, the tankers must be towed by standard tractors, and the driver should be a healthy and trained individual. This highlights the importance of recruiting tractors for the transportation of liquefied gas by the LPG transport company.

Final Word

The export of liquefied gas, despite its profitability and high importance, is a sensitive and complex process that requires complete awareness of the stages, permits, and customs regulations. Individuals who intend to enter this market must acquire precise information in this regard. Our consultants at Kian Petroleum are ready to provide the necessary guidance for both experienced exporters and those who are new to this field, making the export process smoother for you.