Rosneft suspended the liquefied gas (LPG), shipments, from Rospan plants after a July 26 fire in one of its LPG production units.

Rospan’s gas-processing facility in the Yamal Nenets region was hit by an explosion and fire last Friday. Rospan supplies LPG to Russian and international markets.

Sources said that since the 28th of July, LPG deliveries from Korotchaevo, the main outlet for Rospan LPG, had been suspended.

According to the website of SPIMEX, St. Petersburg International Mercantile Exchange has also stopped selling LPG at Korotchaevo stations as of July 26.

One source said that the suspension of LPG loading at Rospan was expected to last until August 1, though the exact date of the loading has not been confirmed.

Rosneft didn't immediately reply to our request for a comment.

Rospan started LPG production in 2021. The total LPG production capacity of Rospan is approximately 1.3 million tons per annum.

Rospan, one of Russia's largest LPG producers and suppliers, accounted for 11% of all rail-shipped LPG to domestic markets in the first six months of 2024.

Sources claim that rail LPG shipments from Rospan will reach 888,000 tonnes in 2023, up from 386,000 tons in 2012. This included approximately 773,000 tonnes for the domestic market, and about 115,000 tons for exports.

Rospan has several fields that have reserves totaling 975 billion cubic metres of natural gas, 150 million metric tonnes of condensate of gas and 40 million tons oil. Mark Potter is responsible for editing and reporting.

(source: Reuters)