Saudi Arabia: Market for Liquefied Petroleum Gas (LPG) 2025

Market Size for Liquefied Petroleum Gas (LPG) in Saudi Arabia

In 2022, the Saudi liquefied petroleum gas (LPG) market decreased by -11.6% to $X for the first time since 2018, thus ending a three-year rising trend. Over the period under review, consumption recorded a relatively flat trend pattern. Over the period under review, the market hit record highs at $X in 2014; however, from 2015 to 2022, consumption stood at a somewhat lower figure.

Production of Liquefied Petroleum Gas (LPG) in Saudi Arabia

In value terms, liquefied petroleum gas (LPG) production reduced to $X in 2022 estimated in export price. In general, production saw a relatively flat trend pattern. The pace of growth was the most pronounced in 2017 when the production volume increased by 23%. Liquefied petroleum gas (LPG) production peaked at $X in 2013; however, from 2014 to 2022, production failed to regain momentum.

Exports of Liquefied Petroleum Gas (LPG)

Exports from Saudi Arabia

In 2022, after three years of decline, there was significant growth in overseas shipments of liquefied petroleum gas (LPG), when their volume increased by 6.8% to X tons. Overall, total exports indicated perceptible growth from 2012 to 2022: its volume increased at an average annual rate of +2.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports decreased by -27.0% against 2018 indices. The growth pace was the most rapid in 2015 when exports increased by 53%. The exports peaked at X tons in 2018; however, from 2019 to 2022, the exports remained at a lower figure.

In value terms, liquefied petroleum gas (LPG) exports fell modestly to $X in 2022. In general, exports, however, recorded a slight reduction. The most prominent rate of growth was recorded in 2017 with an increase of 37%. The exports peaked at $X in 2018; however, from 2019 to 2022, the exports failed to regain momentum.

Exports by Country

India (X tons) was the main destination for liquefied petroleum gas (LPG) exports from Saudi Arabia, with a 63% share of total exports. Moreover, liquefied petroleum gas (LPG) exports to India exceeded the volume sent to the second major destination, China (X tons), threefold. The third position in this ranking was held by Egypt (X tons), with a 9.6% share.

From 2012 to 2022, the average annual growth rate of volume to India totaled +14.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: China (+10.6% per year) and Egypt (-1.5% per year).

In value terms, India ($X) remains the key foreign market for liquefied petroleum gas (LPG) exports from Saudi Arabia, comprising 63% of total exports. The second position in the ranking was held by China ($X), with an 18% share of total exports. It was followed by Egypt, with an 11% share.

From 2012 to 2022, the average annual growth rate of value to India totaled +9.6%. Exports to the other major destinations recorded the following average annual rates of exports growth: China (+6.8% per year) and Egypt (-3.7% per year).

Export Prices by Country

In 2022, the average liquefied petroleum gas (LPG) export price amounted to $X per ton, shrinking by -7.1% against the previous year. Over the period under review, the export price saw a noticeable descent. The pace of growth appeared the most rapid in 2017 an increase of 36%. Over the period under review, the average export prices attained the peak figure at $X per ton in 2012; however, from 2013 to 2022, the export prices stood at a somewhat lower figure.

Average prices varied noticeably for the major external markets. In 2022, amid the top suppliers, the countries with the highest prices were Egypt ($X per ton) and India ($X per ton), while the average price for exports to the Philippines ($X per ton) and Japan ($X per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Egypt (-2.3%), while the prices for the other major destinations experienced a decline.

Imports of Liquefied Petroleum Gas (LPG)

Imports into Saudi Arabia

In 2022, after six years of growth, there was significant decline in overseas purchases of liquefied petroleum gas (LPG), when their volume decreased by -37.4% to X tons. In general, imports, however, showed a significant expansion. The pace of growth appeared the most rapid in 2019 when imports increased by 116,779% against the previous year. Over the period under review, imports reached the peak figure at X tons in 2021, and then plummeted in the following year.

In value terms, liquefied petroleum gas (LPG) imports contracted markedly to $X in 2022. Over the period under review, imports, however, posted significant growth. The pace of growth was the most pronounced in 2019 with an increase of 20,496%. Imports peaked at $X in 2021, and then reduced remarkably in the following year.

Imports by Country

In 2022, Germany (X tons) constituted the largest supplier of liquefied petroleum gas (LPG) to Saudi Arabia, with a 23% share of total imports. Moreover, liquefied petroleum gas (LPG) imports from Germany exceeded the figures recorded by the second-largest supplier, Italy (X tons), threefold.

From 2012 to 2022, the average annual rate of growth in terms of volume from Germany totaled +108.5%. The remaining supplying countries recorded the following average annual rates of imports growth: Italy (0.0% per year) and the Netherlands (0.0% per year).

In value terms, the largest liquefied petroleum gas (LPG) suppliers to Saudi Arabia were Germany ($X), Italy ($X) and the Netherlands ($X), together comprising 44% of total imports.

Among the main suppliers, Germany, with a CAGR of +48.5%, saw the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

The average liquefied petroleum gas (LPG) import price stood at $X per ton in 2022, approximately equating the previous year. In general, the import price, however, recorded a abrupt decrease. The pace of growth was the most pronounced in 2014 an increase of 14% against the previous year. Over the period under review, average import prices reached the maximum at $X per ton in 2018; however, from 2019 to 2022, import prices remained at a lower figure.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Italy ($X per ton), while the price for Germany ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Greece (-18.4%).

Source: IndexBox Platform