Saudi Aramco has stopped exports of liquefied petroleum gas from its Juaymah terminal on the eastern coast of Saudi Arabia following structural damage to a section of the facility’s delivery system that carries propane and butane, the company confirmed. The shutdown, triggered by the collapse of a trestle supporting critical pipelines, has prompted the cancellation of scheduled shipments of the fuels, key feedstocks for chemicals and energy markets worldwide, as exporters and buyers assess the operational and market impact. The disruption took place on 23 February and forced Aramco to activate its emergency response plan, resulting in the suspension of loading operations at the Juaymah natural gas liquids export terminal. Company statements noted there were no leaks and no personnel were injured during the incident, underscoring the effectiveness of safety protocols at one of the world’s busiest LPG export hubs. Shipments from the company’s western terminals and other parts of its global supply chain are continuing without interruption.
Juaymah, situated near the Jafurah gas field and the Ras Tanura refinery complex, is a strategic node in Saudi Arabia’s downstream energy infrastructure. It handles significant volumes of propane and butane for export markets across Asia, particularly to buyers in Japan, Korea, China and India, who rely on steady deliveries to meet industrial and residential demand. According to ship-tracking data, the terminal handled about 450,000 tonnes of LPG per month over the last two years, with India accounting for a significant share of cargoes.
Energy market participants responded swiftly to the news, with prices for Far East propane futures for March climbing by nearly 5 per cent to above $590 per tonne as traders factored in the potential tightening of supply. The outage has added to volatility in LPG markets already navigating geopolitical tensions and shifting demand patterns at the start of the seasonal trading cycle.
Industry analysts note the specific structural failure — the collapse of a trestle carrying essential pipelines — is under investigation, with Aramco and its engineering teams working to determine root causes and the timeline for restoration. The adjacent infrastructure at the Juaymah complex, which comprises extensive pipelines, storage tanks and loading berths, is critical not only for LPG but also as part of broader energy logistics supporting Saudi Arabia’s export commitments.
The cancellation of forthcoming propane and butane deliveries, extending into the next few weeks, has prompted refiners and trading houses in Asia to begin recalibrating supply strategies, including looking to alternative supply sources or adjusting inventory draws. LPG is a fundamental petrochemical feedstock and heating fuel, and disruptions in Gulf exports tend to ripple through global markets, affecting pricing and contractual performance metrics.
Saudi Aramco’s emergency response emphasizes both risk mitigation and ongoing evaluation of the outage’s broader implications. Operational teams at the Juaymah terminal are assessing both the physical damage and the logistics of returning the delivery system to full capacity. Early statements from company officials highlight commitments to safety and reliability but stop short of offering firm timelines for resumption of normal export volumes.
Market watchers are also monitoring reactions among major LPG traders and energy consumers in Asia, where inventories and forward purchases might be adjusted in light of the interruptions. For Japan and Korea, which import significant quantities of propane for power generation and petrochemicals, the halt adds pressure to secure cargoes from other origins or through spot markets. China’s state and private buyers are similarly assessing their purchasing strategies, while Indian refiners, typically major recipients of Juaymah shipments, may seek to diversify sources to manage risk.
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Saudi Arabia