LAGOS, Nigeria, May 30, 2022 /PRNewswire/ — 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,” Argus Media chairman and chief executive Adrian Binks said. “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.
Argus contact information
London: Seana Lanigan
+44 20 7780 4200
Houston: Matt Oatway
+1 713 968 0000
Singapore: Tomoko Hashimoto
+65 6496 9960
About Argus Media
Argus is an independent media organisation with 1,200 staff. It is headquartered in London and has 27 offices in the world’s principal commodity trading and production centres. Argus produces price assessments and analysis of international energy and other commodity markets and offers bespoke consulting services and industry-leading conferences.
Companies in 140 countries around the world use Argus data to index physical trade and as benchmarks in financial derivative markets as well as for analysis and planning purposes.
Argus was founded in 1970 and is a privately held UK-registered company. It is owned by employee shareholders, global growth equity firm General Atlantic and Hg, the specialist software and technology services investor.
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SOURCE Argus Media