Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to Forbes on the production and export of LPG in Russia and the reasons for its wholesale prices sharp rise.
The LPG market in Russia is significantly freer than the regulated gasoline and diesel fuel markets, Alexey Belogoryev says.
The main supplier of LPG in Russia is Sibur, which is also its largest consumer. The gas is used for the production of petrochemical products, the expert says. LPG is produced by gas producing companies, primarily Gazprom and Novatek, and vertically integrated oil companies, including Rosneft and Lukoil.
LPG production was not so badly affected by the attacks on the refineries, given that most of it is produced beyond the Urals and mainly at gas processing facilities, Belogoryev said. Transport problems have had a much stronger impact, he says: due to congestion on the railways, LPG tanks have been standing on sidings for weeks, passing trains with scarce gasoline from east to west.
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