On July 9, 2010 Estaleiro Promar S.A. signed 8 contracts to build LPG Carriers for Transpetro, the shipping arm of the Brazilian oil giant Petrobras (NYSE:PBR). The contracts amounts US $536 million, comprising the construction of two different types of LPG Carriers: fully pressurized with cargo capacity of 7.000 m3 (4 units) and 4.000 m3 (2 units) and semi-refrigerated with cargo capacity of 12.000 m3 (2 units).

http://www.pennenergy.com/index/petroleum/display/1240981003/articles/pennenergy/petroleum/pipelines/2010/07/stx-nabs_eight_newbuilding.html

As is attested by the report above, Petrobras – one of the many distinguished companies speaking at the 5^th LPG Trade Summit – is dedicated to some serious investment in their shipping business and perhaps import capacity of LPG.

5^th LPG Trade Summit, with the theme ‘Aligning the incremental export capacity with demand growth or competitive economics?’ takes a look at LPG in the shipping market –  on the availability, trade route & freight rate.

The conference also zooms in on how the LPG industry is shifting towards the Western Markets like Europe, Latin America and the US Gulf.

We are currently finalizing the program details and will update the event schedule very soon.

Click here for a list of confirmed speakers and topic highlights to date.

SAMSUNG TOTAL PETROCHEMICALS COMPLETES LPG TANK WITH A STORAGE CAPACITY OF 40,000 TONS

South Korea’s Samsung Total Petrochemicals has completed a Won 50 billion (US$41.8 million) LPG tank with a storage capacity of 40,000 tons. Samsung Total will use the tank to import 1 million tpa of LPG from October. 600,000 tons of this will be as feedstock, which will reduce consumption of naphtha, while the balance will be resold to local markets. It plans to import 80,000-90,000 mt of LPG per month from Saudi Arabia, Qatar and other Middle East countries. Petrochemical firms can switch to LPG when prices of the conventional feedstock naphtha are high. Compared with volatile naphtha prices, which move directly in line with crude oil, LPG prices are relatively stable.

“With the storage facility, we can ensure stable supplies of LPG and expand our business portfolio,” CEO Yoo Suk-Ryul said in a statement. “We can save Won 20 billion a year as we can choose either LPG or naphtha as feedstocks on the basis of market conditions,” a company official said ~ Plastmart.com 31 May 2010

CPC REPLACES LPG WITH NAPHTHA AS FEEDSTOCK IN ETHYLENE PRODUCTION FACILITIES

CPC Corp., Taiwan’s state-owned oil refiner, switched to using naphtha from liquefied petroleum gas (LPG) as a feedstock to produce ethylene starting in June.

The company is using more naphtha as the cost of the oil product has fallen, Jessica Tang, a public relations officer, said by phone in Taipei yesterday. The refiner used between 4.4 percent and 10 percent of LPG at its three ethylene plants in May, she said.

CPC operates three crackers at Kaohsiung in southern Taiwan that can process naphtha, distilled from crude oil, or LPG into ethylene, a material used to make plastics, chemicals and fabrics. The plants have a combined capacity to make 1.1 million metric tons of ethylene a year. Naphtha prices have fallen 16 percent since reaching this year’s high on May 4, according to data compiled by Bloomberg. ~ The China Post 15 Jun 2010

Given the above scenario, it is obvious that petrochemical producers are now challenged into accessing which, between LPG and Naphtha, to use as feedstock. For that reason, insights on feedstock economics, will be the main highlight at the 5th LPGTrade Summit. This annual meet of LPG suppliers and traders who will share on future LPG supply from their companies and potentially seek long-term supply contracts, is meeting on the 25-26 October in Abu Dhabi. Click here for more information.

Here’s a snap shot of the participants profile at our 4th LPGTrade Summit in Doha last November : LPG/LNG Producers, International & National Oil Companies, Importers, Marketers & Traders, Brokers, Charterer and Shipping Companies, Consultants, Financial Institutions, and other LPG End Users from over 30 countries!

So if you are part of this profile and want to have the latest updates in the movement of LPG or meet with the movers and shakers of the LPG industry then you must attend this global event.

Don’t delay, >>send in your registrations<< early to reserve your place at this must-attend conference for the LPG industry.

“Qatar will produce 12.6 million tonnes per year (tpy) of liquefied petroleum gas (LPG) by 2012, up from 8.2 million tpy now, making it one of the biggest LPG producers in the Middle East, the CEO of Qatar International Petroleum Marketing Co, also known as Tasweeq, said on Wednesday.” ~Reuters, 5 May

“JS Private Equity Fund has expressed intention to acquire 15.374 million shares, representing 67.91 per cent of the issued share capital of Shell Gas LPG (Pakistan) Limited, according to a notice sent to the Karachi Stock Exchange on Tuesday.” ~ Pakistan Tribune, 5 May

“Worldwide trade in LPG will increase over the near term with a growing surplus in markets east of the Suez Canal pushing more LPG into western markets. In the West, more LPG will become petrochemical feedstock in that price-sensitive market…Overall, worldwide LPG growth through 2013 will average about 3.5%/year.” ~ Oil & Gas Journal, March 2010

As the world moves out of recession, the markets to watch will still be in the Middle East where rapid petrochemical expansions and growing domestic/commercial use are creating strong demand.

But will demand be sufficient to absorb supply? Supply growth among Middle Eastern producers is also expected to especially strong, specifically in Iran, Qatar, and Abu Dhabi, increasing by about 14 million tonnes by 2013 according to Purvin & Gertz’ latest estimates.

The best place to make sense of the LPG markets for 2010 and beyond is at the 5th LPGtrade Summit, meeting in Abu Dhabi from 25-27 October this year. Participants can look forward to high-level discussions on latest trends shaping the LPG business, including LPG capacity additions in the UAE & other Middle East states, as well as the demand revival in key regional LPG markets.

5th LPGtrade Summit is part of the annual LPG conference that meets around the world to offer market updates, and networking opportunities. Last year’s headline making conference saw participation from over 350 of the most influential LPG executives from over 31 countries!

Watch out for our updates on 5th LPGtrade Summit, which will be coming soon!

In the mean time, mark the dates 25-27 October in your calendars, and send in your pre-registrations for 5th LPGtrade Summit to Ms. Nadia Albahar at nadia@cmtsp.com.sg.

Keynote Address- 4th LPGtrade Summit

 Making plans for 5th LPGtrade Summit? Yes the LPG World’s most popular conference is back for 2010, meeting on 25-27 October! Look forward to an exciting 3 day event packed with essential industry updates, and valuable networking!  

But don’t take our word for it. See what your industry peers said about last year’s conference:
 

4th LPGtrade Gala Dinner

Don’t miss out on  5th LPGtrade Summit, the “most interesting conference (you) will ever attend!”  (Review from 2009 attendee) 

If you are keen to register, or  explore sponsorship and media exchange opportunities, enquire with Ms. Nadia AlBahar at nadia@cmtsp.com.sg.  

In the mean time, stay tuned for exciting updates on the conference agenda and fringe events.  

He also hailed the 4th LPG Trade Summit as a “perfect forum to discuss the major challenges facing businessmen in the sector of Liquefied Natural Gas in the coming years”.

4th LPGtrade Summit, held under the patronage of Deputy Prime Minister and Minister of Energy and Industry H.E. Abdullah bin Hamad al Attiyah, was the biggest LPG trade meet in 2009, attracting participation from over 350 of the most influential LPG executives from over 31 countries. There was also a strong presence of local and international media at the conference, many of whom paid close attention to updates from Qatar, and OPEC’s eagerly anticipated speech on the outlook for 2010.

Hassan Mohamed Qbazard, the director of OPEC’s research department revealed that OPEC’s forecast for 2010 now shows positive world GDP growth of 2.7 percent, raised from an initial forecast of 2.3 percent in July. He also pointed out that volatility of prices is a permanent challenge to OPEC, while delivering assurance that OPEC will take the necessary steps to restore stability to the market.

The 350-strong audience also paid close attention to the keynotes morning session, with insights from leading influencers in world LPG trade flows, including Ali Al-Hammadi- CEO of Tasweeq, explained that in the typical North Field content three quarter consists of LNG/gas and 7 percent LPG. “That 7 percent is giving us now 6 million tons of LPG to rise to 9 million tonnes next year and ultimately reaching 12 million tons, making Qatar one of the largest LPG producers,” he said.

Other keynotes at the conference were delivered by Dennis M. Houston-EVP of ExxonMobil Refining & Supply Co, Dr. Chawki Rahal- EVP of Sonatrach, Phil Parker- GM New Business Development of Shell Chemicals ME, Andy Laven, VP Integrated Supply & Trading of BP and Philippe Sauquet-VP of TOTAL.

4th LPGtrade summit participants also participated in many fringe events designed to facilitate networking and interaction, including the LPG Challenge Golf tournament, the visit to Ras Laffan Industrial City, and the 4th LPGtrade Summit Gala Dinner at Doha’s beautiful Museum of Islamic Art.

The 4th LPGtrade summit team would like to thank our Official Host and Partner Tasweeq, Official Sponsor Exxon Mobil, Gold Sponsor Shell, Gala Dinner Sponsors Qatar Petroleum and Tasweeq, Bronze Sponsors BP and Total, Luncheon Sponsors Conoco Phillips and Itochu, and Panel Sponsor Argus for backing this event, and contributing towards its success.

We would also like to thank our promotion partners Argus, Energy Intelligence, Energy China Forum, Gas Bazaar, Gulf Oil and Gas, MEES, RIM Energy Market Intelligence, Thompson Reuters and World LP Gas Association for their support.

4th LPGtrade Summit was a resounding success, and we look forward to meeting everyone of you at next year’s event!

In the mean time, visit this website regularly, as we post more highlights of this year’s summit, as well as updates on next year’s event.

Please click on

SL – automatic slide

FS – for full screen view

more pictures to come soon…

According to Mr. Al Hammadi, “We want to be perceived as a country that really wants to contribute to making a difference in the development of the LPG industry. The 4th LPGtrade Summit is a positive step in that direction, which will go a long way in communicating our commitment to the LPG business.”

He also told Qatar Today why the world’s most influential LPG executives are coming to Doha for the summit, touching on the agenda, keynote speakers and special fringe events organized for the conference participants.

>>Click here to read the full Qatar Today article<<

In the mean time, >>Find out more about the 4th LPGtrade Summit here.<<

He has authored a number of financial and academic articles, and appears regularly in the international media. His job has taken him across the Bank’s franchises in Europe, Asia, Africa and the Middle East. Marios was promoted to the role of Regional Head of Research for the Middle East, North Africa and South Asia in 2007 and he is based in Dubai.

4th LPG Trade Summit 2009 Doha Speaker
Day 2 – Tuesday, November 10
14:20      Global Macro Economic Outlook

The 4th LPGtrade Summit provides an unrivalled platform for industry experts to network and exchange information on issues that shape the growth of the global LPG sector. To find more about 4th LPG Trade Summit in Doha from November 9 to 11, 2009, please visit http://www.lpgworldforum.com

4th LPG Trade Summit 2009 Doha Speaker
Day 2 – Tuesday, November 10
14:50      LPG Market Outlook: Balancing the Market

The 4th LPGtrade Summit provides an unrivalled platform for industry experts to network and exchange information on issues that shape the growth of the global LPG sector. To find more about 4th LPG Trade Summit in Doha from November 9 to 11, 2009, please visit http://www.lpgworldforum.com