Global Gas Consumption

• Liquefied natural gas (LNG)
• Gas exports from Russia
• Gas production in Russia
• Oil and gas production

Chronicle

2022: Propane market growth 12.5% to 177.6 million tonnes

In 2022, propane sales globally reached 177.6 million tons, which is 6.2% more than a year ago. Compared to 2020, the volume of consumption of this gas increased by 12.5%, analysts at BusinesStat calculated. Their data was published in early October 2023.

The following factors were the impact on the market in 2020-2022:

• growing demand from industry, construction and petrochemicals;
• increased use of propane in power generation;
• growing volumes of new housing construction, stimulating demand for propane from the domestic sector;
• recovery in demand after a slight decline in 2020, which occurred under the influence of the COVID-19 coronavirus pandemic.

According to analysts, in 2020 there was a slight decrease in propane sales - by 0.6%. The pandemic has had a twofold impact on the global propane market. On the one hand, the demand for propane from industry and transport has sharply decreased. On the other hand, demand from households and the housing sector, on the contrary, grew: families were at home for most of the year, which contributed to the growth in demand - this prevented a more serious decline in aggregate sales volumes.

In 2022 propane exports from Russia decreased by 57% compared to 2018 - from 3.7 to 1.6 million tons. The sanctions did not directly affect liquefied hydrocarbon gas, but supplies to Poland and Ukraine, the largest buyer countries of Russian propane in 2021, have significantly decreased.

The decline in exports in 2022 led to an increase in the supply of propane in the domestic market. In turn, the increase in supply contributed to lower prices, which stimulated domestic sales of propane: in 2022, sales increased by 6.2%.^[1]

Notes