Sibur Holdings, Russia's largest liquefied gas producer and exporter will increase LPG loadings at the Baltic port of Ust-Luga this month by a quarter after securing additional gas carriers, according to two people familiar with its plans.

The company said it would increase LPG loads to 52,000 tons, up from 43,000 tonnes in May.

LSEG data revealed that Sibur's LPG volumes decreased by 48% between January and May compared to last year. Sources said the drop was due to a shortage in tankers following an expiration of a time-charter agreement with Navigator Gas, a shipping company.

Sibur will chartered two new LNG carriers, Falcon and Negmar, in June. Each vessel can carry 20,000 tons of gas. This could increase the company's exports.

One of the sources stated that "an LPG cargo (about 20 000 tons) will be loaded on Falcon in early June."

The logistics component will only be one of the factors that determines how much LPG is supplied through Ust-Luga. "The volumes are largely influenced by domestic demand, and our own plans for supply to the petrochemical plant of the company," said a Sibur representative.

According to LSEG's website, Falcon is owned in Dubai by Delta Overseas Shipping and Negmar Min, by Negmar Denizcilik of Turkey.

Negmar Denizcilik refused to comment, while Reuters could not reach Delta Overseas Shipping to get a comment.

Sibur can increase its exports to Ust-Luga by chartering additional carriers. Russian Railways has confirmed that it can ship up to 86,000 metric tonnes of Sibur LPG this month, according to sources.

Sibur needs to buy more tankers as its voyages to the end user are taking longer, and it is increasingly shipping to Turkey and the Middle East. Meanwhile, European demand for Russian LPG is low due to sanctions.

Ust-Luga, the main Russian port of export for LPG is located in Russia. Last year, it accounted for one quarter of all LPG exports. All volumes were supplied by Sibur.

LPG is used as a substitute for naphtha in the petrochemical sector and also as a raw materials. The fuel is used as a heating, cooking, and auto gas. (Reporting and editing by Tomasz Janowicz and Lisa Shumaker).