Saudi giant extends suspension on LPG deliveries after key site damaged – Bloomberg

Aramco has reportedly halted liquefied petroleum gas shipments next month over damage to a key facility

Saudi Arabia’s petroleum and natural gas giant Aramco is suspending liquefied petroleum gas (LPG) through May due to damage at its main export facility, Bloomberg has reported, citing people familiar with the matter.

The company’s key LPG export hub, the Juaymah terminal located in the Persian Gulf, suffered structural damage in February, shortly before the US-Israeli attack on Iran. At the time, the company said a support structure collapsed at the site, cutting off fuel supply and prompting a halt in overseas shipments. The facility accounts for about 3.5% of total global waterborne LPG exports, according to market analysts.

The conflict in the region left the company unable to fix the damage, and the facility remains shut. Earlier this month, the Saudi Energy Ministry said that the site also suffered fires during Iran’s retaliatory strikes on its US-aligned neighbors. The ministry did not disclose the extent of damage inflicted by the attacks.

On Tuesday, Bloomberg reported that Aramco notified its customers that the deliveries will remain suspended through May.

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Should the Strait of Hormuz reopen in the coming weeks, the deliveries from the Juaymah facility will not resume until the repairs at the site are concluded and it is set to remain offline next month, the sources told the outlet. The company refused to comment on the reporting, Bloomberg noted.

The key waterway continues to face disruptions amid the stalled talks between the US and Iran, which have been unable to agree on key issues, including the fate of Tehran’s nuclear program. The US administration has been reportedly weighing an extended blockade of Iranian ports, regarding it as a preferable option to active hostilities or a retreat and hoping it would pressure Tehran towards a more favorable peace deal. 

The LPG shortages, caused by the disruption of Hormuz and the Juaymah terminal closure, have been primarily felt throughout Asia. India, where LPG is widely used for cooking, has been hit particularly hard by the issue, prompting a surge in firewood use and repeated conflicts between the country’s citizens over scarce supply.