Russia's INK may boost LPG exports by 20%-30% in 2024, focus on China

(Reuters) - Russia's Irkutsk Oil Company will likely increase its exports of LPG by 20%-30% this year, focusing on sales to China, according to traders and industry sources, as the company recovers production.

According to traders, INK, headquartered in the east Siberian city of Irkutsk, will soon put back into operation a production unit, which was damaged a in fire in 2022 at the Markovskoye oil and gas condensate field.

This will lead to an increase in LPG output at INK's Ust-Kut gas processing plant of between 20,000 and 25,000 metric tons per month, or by around a third of current production levels.

Traders believe that the additional volumes could be exported to China via railways and further through the Manzhouli Far East Gas terminal.

INK has not replied to a request for comment.

According to industry sources, INK raised LPG supplies via railways by 73% last year to 376,400 tons, of which 302,000 tons were exported.

The Ust-Kut plant exported 179,000 tons to Poland in 2023, up from 105,800 tons in 2022. Exports to China edged down to 94,300 tons last year from 94,900 tons in 2022, while supplies to Mongolia totalled 21,900 tons from just 150 tons.

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