Middle East: Market for Liquefied Petroleum Gas (LPG) 2022

Market Size for Liquefied Petroleum Gas (LPG) in the Middle East

In 2021, after two years of decline, there was significant growth in the Middle Eastern liquefied petroleum gas (LPG) market, when its value increased by 9.2% to $X. In general, consumption, however, continues to indicate a perceptible setback. Over the period under review, the market attained the maximum level at $X in 2012; however, from 2013 to 2021, consumption remained at a lower figure.

Production of Liquefied Petroleum Gas (LPG) in the Middle East

In value terms, liquefied petroleum gas (LPG) production expanded rapidly to $X in 2021 estimated in export price. Overall, production, however, showed a noticeable contraction. The pace of growth appeared the most rapid in 2017 when the production volume increased by 17%. The level of production peaked at $X in 2014; however, from 2015 to 2021, production failed to regain momentum.

Exports of Liquefied Petroleum Gas (LPG)

Exports in the Middle East

In 2021, after four years of decline, there was significant growth in shipments abroad of liquefied petroleum gas (LPG), when their volume increased by 5.3% to X tons. Total exports indicated moderate growth from 2012 to 2021: its volume increased at an average annual rate of +4.0% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, exports decreased by -9.0% against 2016 indices. The pace of growth appeared the most rapid in 2015 with an increase of 20% against the previous year. Over the period under review, the exports attained the peak figure at X tons in 2016; however, from 2017 to 2021, the exports stood at a somewhat lower figure.

In value terms, liquefied petroleum gas (LPG) exports surged to $X in 2021. Over the period under review, exports saw a relatively flat trend pattern. The level of export peaked at $X in 2014; however, from 2015 to 2021, the exports remained at a lower figure.

Exports by Country

The shipments of the four major exporters of liquefied petroleum gas (LPG), namely the United Arab Emirates, Saudi Arabia, Iran and Kuwait, represented more than two-thirds of total export.

From 2012 to 2021, the most notable rate of growth in terms of shipments, amongst the leading exporting countries, was attained by Iran (with a CAGR of +10.5%), while the other leaders experienced more modest paces of growth.

In value terms, the United Arab Emirates ($X), Saudi Arabia ($X) and Iran ($X) were the countries with the highest levels of exports in 2021, with a combined 68% share of total exports.

Iran, with a CAGR of +2.6%, saw the highest rates of growth with regard to the value of exports, among the main exporting countries over the period under review, while shipments for the other leaders experienced a decline in the exports figures.

Export Prices by Country

In 2021, the export price in the Middle East amounted to $X per ton, surging by 45% against the previous year. Over the period under review, the export price, however, recorded a pronounced slump. Over the period under review, the export prices attained the maximum at $X per ton in 2012; however, from 2013 to 2021, the export prices remained at a lower figure.

Prices varied noticeably country of origin: the country with the highest price was the United Arab Emirates ($X per ton), while Kuwait ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the United Arab Emirates (-3.9%), while the other leaders experienced a decline in the export price figures.

Imports of Liquefied Petroleum Gas (LPG)

Imports in the Middle East

In 2021, purchases abroad of liquefied petroleum gas (LPG) increased by 8.5% to X tons, rising for the second year in a row after three years of decline. Total imports indicated noticeable growth from 2012 to 2021: its volume increased at an average annual rate of +2.6% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports increased by +36.1% against 2019 indices. The most prominent rate of growth was recorded in 2015 with an increase of 56%. Over the period under review, imports reached the peak figure at X tons in 2016; however, from 2017 to 2021, imports remained at a lower figure.

In value terms, liquefied petroleum gas (LPG) imports surged to $X in 2021. Total imports indicated noticeable growth from 2012 to 2021: its value increased at an average annual rate of +3.0% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2015 with an increase of 68% against the previous year. As a result, imports reached the peak of $X. From 2016 to 2021, the growth of imports failed to regain momentum.

Imports by Country

Turkey represented the main importer of liquefied petroleum gas (LPG) in the Middle East, with the volume of imports reaching X tons, which was near 62% of total imports in 2021. It was distantly followed by the United Arab Emirates (X tons), committing a 26% share of total imports. The following importers - Lebanon (X tons) and Israel (X tons) - each reached an 8.6% share of total imports.

Turkey experienced a relatively flat trend pattern with regard to volume of imports of liquefied petroleum gas (LPG). At the same time, Israel (+26.6%) and the United Arab Emirates (+13.6%) displayed positive paces of growth. Moreover, Israel emerged as the fastest-growing importer imported in the Middle East, with a CAGR of +26.6% from 2012-2021. Lebanon experienced a relatively flat trend pattern. The United Arab Emirates (+16 p.p.) and Israel (+3.6 p.p.) significantly strengthened its position in terms of the total imports, while Turkey saw its share reduced by -17% from 2012 to 2021, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Turkey ($X) constitutes the largest market for imported liquefied petroleum gas (LPG) in the Middle East, comprising 66% of total imports. The second position in the ranking was held by the United Arab Emirates ($X), with a 21% share of total imports. It was followed by Lebanon, with a 5.4% share.

In Turkey, liquefied petroleum gas (LPG) imports expanded at an average annual rate of +2.7% over the period from 2012-2021. In the other countries, the average annual rates were as follows: the United Arab Emirates (+5.9% per year) and Lebanon (-3.4% per year).

Import Prices by Country

The import price in the Middle East stood at $X per ton in 2021, surging by 39% against the previous year. Overall, the import price saw a relatively flat trend pattern. As a result, import price attained the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2021, the country with the highest price was Lebanon ($X per ton), while the United Arab Emirates ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Turkey (+2.9%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Market Intelligence Platform

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