Liquefied petroleum gas

Absolutely.

I think, you know, there are a lot of countries, I think India in particular, a country that didn't have a major strategic petroleum reserve of crude or refined products, and they got hit with crude, and they got hit even more acutely by the shortfall of LPG, which is used as cooking fuel in India.

So you've already seen countries kind of commit to building larger strategic stockpiles on the other hand of this, often in partnership with the Gulf exporters, because the importers on the import cover and the exporters in this case with India, it's Adnok from the Emirates.

They want forward deployed barrels.

What we can see in data is that it doesn't appear yet that we've seen major losses of demand anywhere yet.

Most of what we're seeing is still being drawn down from inventories, which are getting extremely low.

The main areas that we saw outright loss of consumption reported was largely on the LPG.

So this is your propane, butane, et cetera, particularly in India as an example.

One of the things that we're looking at is we've launched an internal fuel strategy, so we're looking to move away from the use of diesel.

We've started now using LPG, so bio-LPG, to use for our setups, and we're also currently undertaking trials to now move away from bio-LPG towards hydrogen.

It is a drastic push to become a fossil fuel free business and certain projects, obviously National Highways are asking for this to be implemented by January 28 onwards and obviously those trials need to be undertaken to be able to effectively deliver those.

and be confident that we can deliver

That means growing NGL production and the liquids that emerge from fractionation will increasingly need to find other markets, putting more emphasis on Gulf Coast export capacity.

Gulf Coast LPG export capacity, primarily for propane and butane, and collectively called LPG once it's on the water just to confuse non-NGL folks, has nearly doubled over the last several years, from 1.2 million barrels per day in 2017 to 2.3 million barrels per day in 2025.

Exports also grew by about 1.1 million barrels per day over that period, a 10% compound annual growth rate, CAGR, CTGIF.

About 90% of that growth has come from Pad 3, underscoring the Gulf Coast position as the epicenter of the world's NGL export market.

That export growth was not optional.

It was necessary.

Shale development has continued to increase volumes of propane, butane and ethane alongside crude oil and natural gas production, while domestic demand for LPGs has been flat, and ethane demand has stagnated after a slew of new steam crackers came online in the second half of the 2010s.

Looking ahead, expansions at existing terminals and startups along the Texas and Louisiana Gulf Coast are expected to serve rising exports.

But it's mostly refined products.

So we see like fuel oil, NAFTA, LPG.

LPG is still one of the hot commodities, even though it's not in the volume it used to be.

It is a commodity that does make it out into the world.

Oftentimes, they will do a ship-to-ship transfer in the Gulf of Oman, and then the receiving tanker might not be on the OFAC list and therefore is able to get out of the U.S. Navy blockade line.

Yeah.

Let's finish with LPG, the new product that we are going to release in early November.

And for this podcast, we will do a summary of how we are looking at, who we are seeing in the market, how the main impact, well, how the lack of AG bars is impacting the global market.

So AG is also the main supplier.

So we have... a 2.5, 2.8 million ton difference compared to the historical average.

That volume is being compensated by other outlets that are exporting more.

So we have the US that has raised their LPG export levels for 1 million ton and also some other suppliers like Sonatrac in Nigeria and some other marginal exporters like Argentina and so on.

But overall, we have a net loss of between 1 and 1.5 million barrels the impact is hitting one region, and it's India and Pakistan.

And a quick review of the other stories.

Circle Gas, the UK parent of Kenyan pay-as-you-go cook liquefied petroleum gas LPG supplier MGAS, reported that $67 million in contracted carbon credits awaiting delivery and $57 million in cash payments in 2025, according to its financial statements.

The company's dependence on the carbon credit revenue exposes the financial risks facing Kenya's clean cooking businesses where government authorization can determine whether contracted credits deliver their expected value.

The company's accounts filed in September show the financial stakes Circle Gas lost US$39.3 million in 2025, held US$1.1 million in cash at year-end and reported net liabilities of US$156.7 million.

It needs about US$28 million in new funding to finance its growth plans.

Carbon credits are central to the economics of clean cooking business such as MGas.

The company supplies LPG in small, affordable amounts.

with smart meters so households can pay as they cook.

Volumes have tripled over the past decade.

Propane dominates and is typically grouped with butane and isobutane as liquefied petroleum gas or LPG.

Japan is our biggest buyer and requires pure propane which is widely used for residential and commercial heating as well as the petrochemical feedstock.

China also uses propane primarily as a feedstock.

Blended LPG can be cheaper than pure propane and developing economies tend to be the buyers.

Over half of US LPG exports go to Asia.

Five years ago, China was our joint top destination along with South Korea for LNG exports.

Evidently concluding that less US trade exposure is better, they slashed their volumes from just under 13% of our exports to virtually zero last year.

So Panthers take over on downs.

[cheering] [clapping] Thank you to Shaw's LP Gas, offering a full line of rural pool appliances, along with installation and service.

Shaw's LP Gas and Appliance, downtown Durand.

Adam's Super Service, your Techneck car care center, downtown Durand.

And Prime Realty of Durand, visit their website at primerealtymidwest.com. Prime Realty, they are the area's number one home seller.

If you are just joining us, I have some news for youuu.

The IRGC says it struck a giant LPG natural gas, uh, carrier named NV Sunshine that was attempting to pass through the illegal route according to the Iranians, south of the Strait of Hormuz.

The Saudi Civil Aviation Authority says King Khalid International Airport, north of Riyadh, was subjected to two attacks on Thursday, in which three Saudi citizens were killed.

Iran's, uh, President Masoud Pezeshkian has said the suc-success of talks with Washington depends on them being conducted without pressure and threats.