Chinese LPG demand is poised to grow sharply into 2020, Argus Media senior analyst David Appleton said today.
Chinese LPG consumption rose 22.9pc between 2014 and 2015, according to Argus' consulting arm, driven not only by residential demand but by growth in PDH unit demand for propylene production. As a result, Chinese imports rose 70pc between 2014 and 2015.
At the Argus Americas LPG Summit today in Houston, Texas, today, Appleton said he expects that China in particular will require another 7mn t/y of LPG by 2020, when that country will see a 19mn t/yr LPG deficit.
"We do see continued increases, in particular in the PDH sector, but also the demand for residential use of LPG continues to expand," Appleton said. "We are forecasting this to carry on. There will come a point where it slows down, but we don't see this in the next four to five years."
Asia overall will be short 50mn t/yr of LPG in 2020, according to Argus consulting.
