WHAT IS IT?
Liquefied Petroleum Gas (LPG) is a mixture of propane (C₃H₈) and butane (C₄H₁₀) that is gaseous at room temperature but liquefied under moderate pressure for storage and transport. It is extracted from natural gas processing and crude oil refining.
COMPOSITION
Commercial Propane: >95% propane. Used in cold climates (lower boiling point).
Commercial Butane: >95% butane. Used in warmer climates — lighter, more energy-dense.
Mixed LPG: 60:40 or 50:50 propane:butane blend. Most common globally.
KEY USES
Cooking fuel (largest use — 3+ billion people globally, especially in developing markets)
Heating and hot water
Autogas (LPG-fuelled vehicles)
Petrochemical feedstock — PDH (Propane Dehydrogenation) plants convert propane to propylene for PP production
Agricultural crop drying
Industrial heating and metal cutting
WHY LPG MATTERS FOR EAST AFRICA
Tanzania and Kenya are actively promoting LPG adoption to replace charcoal and wood fuel — reducing deforestation and indoor air pollution. Government LPG subsidies drive import demand.
TRADE CORRIDORS
Major exporters: Middle East (Saudi Aramco — world's largest LPG exporter), USA, Russia
Major buyers: Asia (China, India, Japan, South Korea), East Africa, Latin America
Tetra relevance: East Africa import corridor — LPG demand growing rapidly in Kenya and Tanzania.
PRICING BASIS
Benchmark: Saudi Aramco Contract Price (CP) published monthly. Propane CP and Butane CP separately.
Asian buyers pay CP + freight premium.
SPECIFICATIONS
Vapour pressure at 40°C: max 1.55 MPa (propane), max 0.485 MPa (butane)
Density at 15°C: 0.500–0.580 kg/L
Sulphur: max 50mg/kg
Odourised with mercaptan (for safety — odour detection)
STORAGE & SHIPPING
Stored in pressurised cylinders (household) or refrigerated tanks. Shipped in LPG tankers (pressurised or semi-refrigerated). VLGC (Very Large Gas Carriers) for long-haul trade.