LPG
Vitol is one of the world’s largest trader of LPG in terms of both physical and derivatives tonnage. We are also one of the most experienced, having been a leading player in this market for more than 30 years.
Allowing flaring to contribute to climate change is not only unacceptable, but poor economics: the gas is a valuable resource that can be collected and marketed as butane and propane. It has many uses, including as a feedstock for the petrochemical industries, and as an autogas and a portable energy source for domestic cooking and heating. As a result, the sector is growing with a rising supply meeting an increasing demand, as LPG displaces other types of fuel.
At the core of our operation is a fleet of more than 30 LPG tankers. These vessels, built within the last 10 years to Vitol’s specifications, enable us to offer excellent flexibility and, importantly, speed. Refiners tend to have limited LPG storage on site, and with increasingly stringent flaring regulations they need to be able to ship the gas to market quickly. Our fleet ships considerable volumes to countries where bottled gas is popular – such as Portugal, France, Egypt and Turkey – as well as supplying cargoes to the US, China, West Africa, East Africa and the Caribbean.
Vitol also has access to LPG storage in Europe, as well as West Africa through a joint venture that will see significant reductions in flaring in Nigeria by providing logistics for the gas to be marketed inland. Plans are also well advanced for LPG storage capacity in the US.
In addition, Vitol is highly active in refrigerated long-haul arbitrage business, ready to take cargoes wherever global market conditions dictate.
As supply increases over the next five years, Vitol will play a key role in identifying and enabling profitable outlets for LPG worldwide.
• The Charlton – one of a fleet of more than 30 LPG tankers built to Vitol’s specifications within the last 10 years to enable us to meet increasing demand with flexibility and speed.