Given the geopolitical upheaval and LPG supply crisis of 2026, it would be easy to forget how disruptive 2025 was for the global LPG industry, as tariffs, sanctions and uncertainty upended established trade patterns. Yet global LPG supply still rose by 2.7pc on the year to about 380mn t and demand grew by 1.2pc to 374mn t in 2025, according to the Statistical Review of Global LPG published by Argus on behalf of the World Liquid Gas Association (WLGA) last month. Argus spoke with WLGA director David Tyler about the key trends that emerged from the 2025 data:
What is your assessment of the market's performance in 2025?
The industry demonstrated remarkable resilience and adaptability. Global LPG supply increased, supported by the development of new markets and evolving trade routes, while demand also rose, although growth remained uneven across regions and end-use sectors. The US continued to drive global supply growth, underpinned by strong NGL [natural gas liquids] production from shale developments. Additional supplies emerged from other regions, notably Argentina, further diversifying the global supply base.
Looking ahead, the industry's long-term success will depend not only on maintaining reliable and competitive supplies, but also on its ability to navigate shifting trade patterns, respond to changing market dynamics and unlock new opportunities for growth. Above all, ensuring that LPG remains safe, affordable and accessible will be essential.
How much of an impact did Chinese tariffs have on US LPG in 2025?
They significantly disrupted one of the world's most important LPG trading relationships. Chinese importers had to look for alternative supplies, particularly from the Middle East, while US exporters redirected cargoes to other markets in Asia and beyond. This reshuffling demonstrated the flexibility and resilience of the global LPG market, although it also introduced additional logistical complexity, higher freight costs and greater price volatility. The impact was particularly felt by China's PDH [propane dehydrogenation] sector, as operators depend on competitively priced propane feedstock, placing further pressure on a sector already facing challenging economic conditions.
US LPG production grew strongly again last year. What challenges and opportunities does that create for US exporters?
US output rose by 6.5pc to 118mn t — almost equivalent to the global chemical sector's demand in 2025. This reinforces the US' position as the world's leading LPG exporter and increases the importance of securing reliable international markets for expanding supplies. The challenge for US exporters is to navigate an increasingly complex trading environment. But this disruption has created opportunities to diversify export destinations. Redirecting US cargoes to India, southeast Asia and Europe demonstrates this adaptability, while further investment in export capacity provides more flexibility. This year's events further highlight these opportunities. Success for US exporters will depend on developing broader, more resilient networks while remaining competitive in price-sensitive markets.
Argentina's LPG output also grew strongly in 2025. Could it emerge as a major supplier in the coming years?
Argentina's production increased by 9.3pc to 3.3mn t, highlighting the country's growing potential as an international supplier. Production remains modest compared with the US but Argentina is well positioned to serve neighbouring Latin American markets that depend on imports, while progressively shipping more LPG elsewhere. Development of Argentina's upstream resources, particularly Vaca Muerta, offers significant opportunities to further increase LPG output. But realising this potential will require sustained investment in gas processing, fractionation, storage, transportation and export infrastructure. Argentina will also face strong competition from established exporters, particularly the US, making reliability, logistics and price competitiveness critical to its success.
What drove sub-Saharan Africa's 2025 demand growth and how can this growth be sustained?
The latest statistical review includes data from more than 50 African countries. Total African LPG demand reached 18.3mn t in 2025, a rise of 3.6pc, and sub-Saharan African growth stood at 12pc to a record 6.8mn t. Despite this encouraging performance, consumption is relatively modest considering about three-quarters of Africa's population live in sub-Saharan Africa. One of the greatest challenges is urging households to transition from traditional cooking fuels to LPG. Consumer education, particularly around the safe handling and use of LPG, is essential.
South Africa, Tanzania, Ghana, Kenya and the Ivory Coast illustrate the region's market potential, although progress remains uneven. Sustaining growth requires affordable LPG, reliable supply chains, investment in import and storage infrastructure, safe and effective cylinder distribution networks and robust safety standards and regulations. Above all, supportive government policies will be critical in unlocking clean cooking solutions to millions more households.
India remained a major driver of demand growth last year. Does the Mideast Gulf supply crisis put this at risk?
India's consumption increased by almost 7pc to 35.7mn t, reflecting its sustained commitment to improving access to cleaner cooking fuels. The long-term outlook remains positive, supported by population growth, urbanisation, rising household incomes and government initiatives to promote safe LPG adoption, particularly among lower-income households. But disruption to LPG shipments along the strait of Hormuz has exposed India's vulnerability to concentrated import sources and limited strategic storage capacity, reinforcing the importance of energy security. Future growth will require greater diversification of supply sources, investment in import terminals and storage infrastructure and more resilient distribution networks. Equally important will be maintaining LPG affordability.
How successful was Europe in adapting to its first full year without Russian propane and propane-butane mix?
Europe's rapid adjustment to restrictions on Russian LPG imports provided one of the clearest demonstrations of the industry's resilience. The transition was particularly significant for Poland — historically one of Europe's largest importers of Russian LPG. Despite the disruption, Polish LPG demand increased to 2.45mn t, supported by alternative supplies from Sweden, Norway, the US and other European markets. This remarkable adjustment required significant changes to shipping arrangements, terminal operations and inland distribution networks. While this involved additional logistical complexity and higher costs, it demonstrated the flexibility and strength of regional supply infrastructure and distribution networks.
China's PDH sector faced continued headwinds in 2025. What does this mean for future global demand growth?
China's PDH sector has been one of the principal drivers of global LPG demand growth over the past decade. Demand from the Chinese petrochemical sector has risen to 34.8mn t in 2025 from just over 5mn t in 2015. But substantial investment in new Chinese PDH facilities has created excess capacity, placing growing pressure on operating margins and plant utilisation, introducing more uncertainty to the outlook. PDH capacity may continue to expand in the country but consumption is likely to increasingly depend on plant operating rates, polypropylene demand, propane feedstock prices and competition from alternative technologies. The tariff dispute with the US and subsequent geopolitical disruption have further exposed the sector's vulnerability to feedstock availability and cost. As a result, future Chinese LPG demand growth may prove considerably less predictable than planned petrochemical capacity additions suggest.
The LPG industry has an important opportunity to diversify demand beyond petrochemicals, with more than 2bn people worldwide relying on traditional fuels for cooking. Expanding LPG access, particularly in emerging economies, would not only create more sustainable markets but also improve access to clean cooking.
What was the most surprising or overlooked trend to emerge from the data?
Perhaps the most striking observation is the contrast between the enormous volumes of LPG consumed by the petrochemical sector and the relatively modest quantities required to transform the lives of millions of households. Global LPG supplies rose by about 10mn t in 2025 alone. That additional volume illustrates the scale of the opportunity to expand clean cooking access to LPG across sub-Saharan Africa. So the challenge for the LPG industry is not simply to produce more LPG, but to ensure that more people can benefit from it, as expanding access to cleaner cooking can transform the quality of life for generations to come.
