Poland bought less Russian LPG in 2022, ramped up re-exports to Ukraine

(Reuters) - Poland bought less liquefied petroleum gas from Russia last year as it sought to diversify its sources in the wake of the war in Ukraine, data shows, although it remained Russia's top customer for the fuel and ramped up re-exports to Ukraine.

Poland, which imports around 80% of its LPG, increased consumption of the fuel, predominantly for cars, by 2.5% last year to 2.495 million tons, the Polish Liquid Gas Association said in a report published on Thursday.

Russia remained the biggest supplier although volumes fell 7.6% from 2021, according to the association.

At the same time, Poland more than doubled its exports of LPG, mostly Russian LPG, to 460,000 tons in 2022 from 225,000 tons in 2021. More than half went to Ukraine, increasing 24 times on 2021 to 236,000 tons after Russia cut off direct exports of the fuel to Ukraine following the start of the war last February.

LPG is also used for heating and to produce other petrochemicals.

The association said that LPG, or propane and butane, was mostly used in Poland as a car fuel because it was cheaper than gasoline. Poland also buys LPG from countries including Sweden, Kazakhstan, Lithuania and the United States.

Poland remained the largest importer of LPG from Russia in the first quarter of 2023, accounting for around 34% of total LPG exports from Moscow, according to Reuters calculations, despite political tensions between the two countries.

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