LPG Poland-Ukraine Border Price Climbs to 15-Week High Amid Rising NW Europe Costs
The delivered price of liquefied petroleum gas (LPG) on the Poland-Ukraine border has climbed to the highest since May 22, data from consultancy A-95 showed, who attributed this to rising product costs in the Amsterdam-Rotterdam-Antwerp (ARA) region.
The Poland-Ukraine delivered at place (DAP) LPG assessment averaged $915.50/metric ton in the week ending Sept. 4, up $102.50/mt on the week. Comparatively, the cost of LPG at the border averaged $660.50/mt a year earlier.
A-95 attributed the significant week gains and upward trend in prices at the Polish-Ukrainian border on rising product prices in ARA, as well as increased demand from the autogas market in Poland. It said gains recorded in oil prices were a key factor in the 15-week high for LPG in Poland.
The OPIS-assessed CIF ARA physical propane price hit $664/mt on Wednesday, its highest level since May 18, rising $111.50/mt from just two weeks earlier.
The OPIS-assessed CIF ARA butane marker climbed to $741/mt on Wednesday, its highest level since May 22. The assessment has posted gains of $130/mt over the past two weeks.
LPG seaborne imports into Poland remain mostly propane, however. The country unloaded its first ever 2:2 cargo in August, data from shipping analytics firm Vortexa showed.
The 11,000 cubic meter pressurized-coaster Epic Sardinia completed a transatlantic voyage from Houston to Gdynia on Aug. 27, delivering a 5,400 mt mixed cargo.
Poland imported just over 100,000 mt of LPG in August via seaborn routes, its strongest intake since March when the country took delivery of 114,000 mt, Vortexa data showed. The vast majority of flows were taken from Sweden – 66% – last month, followed by Norway at 19%.
However, Sweden itself is a major importer of LPG, the majority of which comes from the U.S., and is then re-exported. The Swedish port of Karlshamn is a dominant destination for this tonnage. From storage in Sweden, propane is then shipped on smaller coasters into Gdansk in northern Poland and distributed inland from there.
Hormuz closure impacts global butane market
The de facto closure of the Strait of Hormuz has impacted the global butane market harder than propane, given the even split nature of volumes loading out of the Middle East.
“Since the second quarter, butane supply has been limited worldwide, impacting prices and physical availability. This is reflected in the structure of imports – propane now accounts for 80% of Poland’s imports, compared to 67% in 2025 and 48% in 2024, when butane was still entering Poland from Russia,” Polish LPG association POGP said in its half year report.
Butane plays an important role in the country’s autogas market, which changes its composition seasonally to match vapor pressure requirements. This autogas season has been particularly active, A-95 added.
Polish winter autogas contains around 60% propane and 40% butane, adapting to the increase in gas vapor pressure. In the summer, autogas proportions are reversed with propane making up 40% and butane adding 60% to the mix, according to Polish automotive firm Autogas ALEX.
Rising oil prices play a significant role in other petroleum derivative markets. With Brent crude prices climbing back over $100/bbl for the first time since July 23 on Wednesday, it offers greater upside for LPG prices, according to A-95. The Intercontinental Exchange (ICE) Brent crude front-month futures contract reached $101.43/bbl at 4:30 p.m. U.K. time on Wednesday, rising $3.37/bbl from London close on Tuesday.
Reporting by Jamie Aldridge, jaldridge@opisnet.com; Editing by Rob Sheridan, rsheridan@opisnet.com