Argus introduces daily export-parity prices for LPG shipped from west Africa.
Global energy and commodity reporting agency, Argus, has introduced daily export-parity prices for LPG shipped from west Africa. The prices reflect the way many regional exports of propane and butane are priced, as a netback price calculated by deducting freight and other costs from the Argus Far East Indexes.
For several years, Argus has been publishing import-parity indexes for LPG that is delivered to west Africa, based on the more competitive of US or Europe-sourced supply when freight to west Africa is included. The addition of export-parity, requested by market participants, recognises that LPG exported from the region, usually to destinations in east Asia, is a key determinant of prices in west Africa itself.
Both sets of prices are designed to give producers, traders, importers and exporters, as well as regulators, a robust reference when evaluating and negotiating the price of propane and butane along regional supply chains, as well as a fair and transparent basis for domestic consumer pricing in Nigeria and beyond. The export prices are based on LPG moving out of Bonny Island while the import prices are for Lagos, Nigeria.
“Access to LPG in Africa is instrumental in improving public health, combatting deforestation and leading the transition away from dirtier, more carbon-intensive fuels,” said Adrian Binks, Chairman and Chief Executive, Argus Media. “Argus has been working closely with market participants and authorities to develop LPG price series that truly reflect the dynamics of west Africa’s rapidly growing market. We are delighted to see a positive response to our innovations and remain committed to raising transparency in the region.”
The propane and butane west African export-parity prices will be published daily in the Argus International LPG report, alongside the existing suite of African LPG prices.
AFEI price assessments are the standard industry benchmark for LPG cargoes trading across the Asia-Pacific region. Argus price assessments for cargoes delivered cif Amsterdam-Rotterdam-Antwerp (ARA) perform the same function in European trade. www.argusmedia.com
