C1 Methodology and Specifications Guide ---Liquefied Petroleum Gas
Liquefied Petroleum Gas (LPG)
LPG (Liquefied Petroleum Gas) is composed mainly of propane (C3H8) and butane (C4H10), with some of it containing propylene (C3H6), butylene and so forth. As LPG is colorless and tasteless, producers usually add a small volume of odorous mercaptan or sulfoether compounds to alert people of a leak. The gaseous density of LPG is 1.5-2 times of that of the air, and it spreads in the air easily. Its liquid density is about half of that of water, and it is usually stored in liquid state. LPG is extremely expansible, so a gas cylinder etc must not be filled up to 85% of its storage capacity. The explosion limits of LPG are 1.5%-9.5%, flammable and explosive.
LPG comes in three ways-associated in the exploitation of oil and gas fields, which requires processing, in a refinery’s petroleum refining and in the process of cracking light oil or light hydrocarbon for the production of ethylene.
LPG is primarily for residential use. It is also used as chemical feedstock, industrial fuel and motor fuel.
LPG Specifications (PRC national standards for LPG --- GB 11174-89)|
Item |
Quality Standard |
Testing Method |
|
Density（15℃）, Kg／m3 |
Report |
ZBE 46001 |
|
Vapor pressure（37.8℃），KPa ≤ |
1380 |
GB 6602 |
|
Pentanes and heavier, %（V／V）≤ |
3.0 |
SY 7509 |
|
Residue |
|
SY7509 |
|
Evaporation residue, mL／100mL |
Report |
|
|
Oil Stain Observation, mL |
Report |
|
|
Copper Strip (Corrosion) ≤ |
1 |
SY 2083 |
|
Sulfur (Total), mg／m3≤ |
343 |
ZB E 46002 |
|
Free Water Content |
N/A |
Visual Test |
C1 LPG reports cover daily intelligence on China’s LPG markets and price assessments.
Editorial Group:
Huang Qing ritahuang@c1energy.biz Zhang
Li zhangli@c1energy.biz
Yuang Jie yangjie@c1energy.biz Xu Yajun
winniexu@c1energy.biz
Wang Yan wangyan@c1energy.biz Zou Jialiang
zoujialiang@c1energy.biz
Publishing Period
Daily, each working day (Saturdays and Sundays excluded)
Daily Price Assessments on China’s LPG Market
Domestic Market
Ex-terminal truck price for domestic LPG in China market (Yuan/mt)
Ex-rail price for domestic LPG in China market (Yuan/mt)
Ex-barge price for domestic LPG in China market (Yuan/mt)
Ex-terminal truck price for industrial-consuming LPG in China market (Yuan/mt)
International Market
CFR China price for refrigerated propane (US$/mt)
CFR China price for refrigerated butane (US$/mt)
CFR China price for pressurized LPG (US$/mt)
FOB China price for pressurized LPG (US$/mt)
Assessment Principles
Timing:
Domestic market --- C1 price assessments for the Chinese domestic markets reflect
the most possible tradable range on LPG in line with C1 standard specifications
for most sellers and buyers in the spot markets from 8:00 up to 15:00 Beijing time
on the date of publication. C1 tracks the markets continuously and assessments are
based on the information provided by market players including sellers, buyers, and/or
credible third parties before the close of the trading day (15:00 Beijing time).
International market --- C1 price assessments for the international markets reflect the most possible tradable range on LPG in line with C1 standard specifications for most sellers and buyers in the spot markets from 8:30 up to 17:00 Beijing time on the date of publication. C1 tracks the markets continuously and assessments are based on the information provided by market players including suppliers, traders, importers, and/or credible third parties before the close of the trading day (17:00 Beijing time).
Product Specifications:
China domestic markets
C1 assesses two grades of LPG in China’s domestic markets. The domestic refinery
grade LPG is defined as the PRC LPG standard specifications, detailed in the above
table in LPG Specifications. The industrial-consuming LPG is defined as typically
being 50:50, propane: butane, with propane and butane specifications in line with
or higher than Saudi Aramco’s specifications.
International markets
C1 assesses two grades of LPG in international markets. Refrigerated LPG is defined
as typically being 50:50, propane: butane, with propane and butane specifications
in line with or higher than Saudi Aramco’s specifications. Pressurized LPG is defined
as typically being 30:70, propane: butane, with propane and butane specifications
in line with or higher than Saudi Aramco’s specifications.
Delivery time:
China domestic market: Assessments typically reflect parcels loading on the same
day when the deal is done.
International market: Assessments for refrigerated LPG typically reflect parcels
loading within 20-25 calendar days after the deal. Assessments for pressurized LPG
typically reflect parcels loading within 5-35 calendar days after the deal.
Payment term: 30 days after bill of lading on Letter of Credit (international markets), cash (domestic markets)
Delivery volume: China domestic market: 10-100mt per lot for ex-terminal truck delivery;
150-250mt per lot for ex-rail delivery; 500-2,900mt per lot for ex-barge delivery.
International market: 10,000-44,000mt per lot for refrigerated LPG cargo; 1,000-2,500mt
per lot for pressurized LPG cargo.
Locations:
|
Ex-terminal truck price assessments for domestic refinery grade LPG in China market |
|
|
Locations |
Remarks |
|
South China |
Include, but are not limited to terminals in Pearl River Delta, East Guangdong and West Guangdong. Prices in Fujian are excluded |
|
Pearl River Delta |
Include, but are not limited to ex-tank truck prices from terminals and refineries like Shenzhen Sino-Benny, Huizhou Longpeng, CNOOC Huizhou Refinery, Sinopec Guangzhou Petchem, Guangzhou Huakai, Guangzhou Petchem Zhongsui Gas, Zhuhai NewOcean, Zhuhai Hengqin, Zhuhai Gas, as well as truck prices of domestic LPG arbitrages delivered to local depots and distributors |
|
East Guangdong |
Include, but are not limited to ex-tank truck prices from terminals and refineries like Shandong Longpeng, Shantou Deyuan Energy, Ouhua Energy, Daming Terminal, as well as truck prices of domestic LPG arbitrages delivered to local depots and distributors |
|
West Guangdong |
Include, but are not limited to ex-tank truck prices from terminals and refineries like Sinopec Maoming Petchem, Sinopec Dongxing Refinery, CNOOC Yangjiang, as well as truck prices of domestic LPG arbitrages delivered to local depots and distributors |
|
Fujian |
Include, but are not limited to ex-tank truck prices from terminals and refineries like Fujian Refining & Chemical, Fujian Huaxing, Hengyuan Huadian, Weitou Huadian, as well as truck prices of domestic LPG arbitrages delivered to local depots and distributors |
|
East China |
Include, but are not limited to terminals in Jiangsu and Zhejiang |
|
Jiangsu |
Include, but are not limited to ex-tank truck prices from terminals and refineries like Yangzi Panva, Sinopec Jinling Petchem, Qingjiang Petchem, Yancheng Petchem, Yangzhou Petchem, Taizhou Petchem, Yangzhou Shi You Chemical, as well as truck prices of domestic LPG arbitrages delivered to local depots and distributors |
|
Zhejiang |
Include, but are not limited to ex-tank truck prices from terminals and refineries like BP Zhenhai, Wenzhou Huadian, Wenzhou Changjiang Energy, Haiyan Huachen, as well as truck prices of domestic LPG arbitrages delivered to local depots and distributors |
|
Shandong |
Include, but are not limited to ex-tank truck prices from refineries like Ji’nan Refinery, Guangrao Petchem, Shandong Huaxing Petrochemical, Shandong Kenli Petrochemical, Lijin Petrochemical Plant, Shandong Shida Shenghua Chemical, Dongying Qifa Chemical, Shandong Changyi Petrochemical, Shandong Dongming Petrochemical Group, Shouguang Shuntai Chemical, Shandong Zibo Huifeng Petrochemical, Shandong Hengyuan Petrochemical, as well as truck prices of domestic LPG arbitrages delivered to local depots and distributors |
|
Central China |
Include, but are not limited to ex-tank truck prices from refineries like Changling Refining & Chemical, Yueyang Petchem, Wuhan Petchem, Jingmen Petchem, as well as truck prices of domestic LPG arbitrages delivered to depots and distributors based in Hunan and Hubei |
|
Hebei |
Include, but are not limited to ex-tank truck prices from refineries like Yanshan Petchem, Tianjin Petchem, Dagang Petchem, Shijiazhuang Refinery, Cangzhou Refinery, Huabei Petchem, Zhongjie Hebei Petrochemical Group, as well as truck prices of domestic LPG arbitrages delivered to local depots and distributors |
|
Northeast China |
Included delivery locations in Liaoning and Heilongjiang |
|
Liaoning |
Include, but are not limited to ex-tank truck prices from refineries like Jinzhou Petchem, Jinxi Petchem, PetroChina Fushun Petrochemical No.2 Refinery, Panjin Heyun Industrial Group, as well as truck prices of domestic LPG arbitrages delivered to local depots and distributors |
|
Heilongjiang |
Include, but are not limited to ex-tank truck prices from refineries like Daqing Petchem, Daqing Refining & Chemical, Harbin Refinery, PetroChina Lamadian Refinery, as well as truck prices of domestic LPG arbitrages delivered to local depots and distributors |
|
Shaanxi |
Include, but are not limited to ex-tank truck prices from refineries like Yan’an Refinery, Xianyang Chemical Additives Plant, Xi’an Petchem, as well as truck prices of domestic LPG arbitrages delivered to local depots and distributors |
|
Southwest China |
Include delivery locations in Sichuan, Chongqing, Yunnan, Guizhou |
|
Sichuan |
Include, but are not limited to ex-tank truck prices from gas companies like China Oil & Gas Group, Jiuhe Lutianhua Co Ltd, Chengdu Huaxin, Chengdu Railway Petchem, as well as truck prices of domestic LPG arbitrages delivered to local depots and distributors |
|
Chongqing |
Include, but are not limited to ex-tank truck prices from gas companies like Chongqing Tielong LPG, Minsheng LPG, as well as truck prices of domestic LPG arbitrages delivered to local depots and distributors |
|
Yunnan |
Include, but are not limited to ex-tank truck prices from gas companies like Yunnan Panva, Kunming Xuran Petchem, Kunming Zhongmin, Oil & Gas sales branch of Sinopec Southwest, as well as truck prices of domestic LPG arbitrages delivered to local depots and distributors |
|
Guizhou |
Include, but are not limited to ex-tank truck prices from gas companies like Guizhou Railway Hongda Petchem, Guizhou Panva, as well as truck prices of domestic LPG arbitrages delivered to local depots and distributors |
|
Ex-rail price assessments for domestic refinery grade LPG in China market |
|
|
Locations |
Remarks |
|
Northeast China |
Include, but are not limited to ex-rail prices from refineries like Daqing Refining & Chemical, Daqing Petchem, Harbin Refinery |
|
Xinjiang |
Include, but are not limited to ex-rail prices from refineries like Urumqi Petchem, Tuha refinery, Dushanzi Petchem, Tarim Petchem, Tahe Petchem |
|
Ex-barge price assessments for domestic refinery grade LPG in China market |
|
|
Locations |
Remarks |
|
South China |
Include, but are not limited to ex-barge prices from Hainan Refining & Chemical, as well as barge prices for domestic LPG arbitrages delivered into South China |
|
East China |
Include, but are not limited to ex-tank barge prices from BPZR, as well as barge prices for domestic LPG arbitrages delivered into Zhejiang |
|
Shandong |
Include, but are not limited to ex-tank barge prices from Qingdao Refining & Chemical, and terminals in Weihai and Yantai, as well as barge prices for domestic LPG arbitrages delivered into Shandong |
|
Liaoning |
Include, but are not limited to ex-tank barge prices from refineries and terminals like Dalian Petchem, Dalian Wepec, Jinzhou Petchem, Daqing Refining & Chemical |
|
Ex-terminal truck price assessments for industrial-consuming LPG in China market |
|
|
Locations |
Remarks |
|
South China |
Include, but are not limited to locations in Pearl River Delta and East Guangdong |
|
Pearl River Delta |
Include, but are not limited to ex-terminal truck prices from Guangzhou Huakai, Shenzhen Sino-Benny, Zhuhai NewOcean, BP Zhuhai, Huizhou Longpeng, as well as barge prices for domestic LPG arbitrages delivered into local depots and distributors |
|
East Guangdong |
Include, but are not limited to ex-terminal truck prices from Ouhua Energy, Shantou Longpeng, Daming Terminal, as well as barge prices for domestic LPG arbitrages delivered into local depots and distributors |
|
East China |
Include, but are not limited to ex-terminal truck prices from Shanghai Golden， Zhangjiagang Unocal, BP Suzhou, Jiangsu Huadian, Wenzhou Huadian, BPZR, as well as barge prices for domestic LPG arbitrages delivered into local depots and distributors |
|
Price assessments for refrigerated LPG in international market |
|
|
Locations |
Remarks |
|
South China |
|
|
Pearl River Delta |
Zhuhai, Shenzhen, Huizhou, Panyu of Guangdong |
|
East Guangdong |
Chaozhou of Guangdong |
|
West Guangdong |
Qinzhou, Fangchenggang of Guangxi |
|
East China |
|
|
Shanghai |
Shanghai Jinshan |
|
Jiangsu |
Zhangjiagang, Taicang, Jingjiang of Jiangsu |
|
Zhejiang |
Wenzhou, Ningbo of Zhejiang |
|
Price assessments for pressurized LPG in international market |
||
|
Locations |
Remarks |
|
|
South China |
|
|
|
Pearl River Delta |
Zhuhai, Huizhou of Guangdong |
|
|
East Guangdong |
Shantou, Chaozhou of Guangdong |
|
|
West Guangdong |
Yangjiang of Guangdong |
|
|
East China |
|
|
|
Shanghai |
Shanghai Jinshan |
|
|
Zhejiang |
Wenzhou, Ningbo of Zhejiang |
|
General principles:
C1’s assessments primarily reflect the traded value of the market during the assessment period when there is deal done. When there is no deal, the price assessments reflect the most possible transactable value of the market, based on a wide variety of information, including bids, offers, market fundamentals and sentiment (supply/demand, feedstocks and downstream markets, related markets, etc).
C1’s assessments are based on the traded or negotiated prices for LPG in line with C1’s standard specifications in the spot market. C1 has the right not to consider deals or negotiations on LPG with non-standard specifications. C1 will not consider deals involved in its information sources of assessments, if the deal or negotiation is between contracted or affiliated enterprises.
Taxes
|
|
Most-Favored-National Import Tariffs |
Import Tariffs |
Export Tariffs |
Value-added Tax Rate |
Consumption Tax Rate |
|
27111200 liquefied propane |
5％ |
20％ |
0％ |
13％ |
0％ |
|
27111390 Other liquefied butane |
5％ |
20％ |
0％ |
13％ |
0％ |
|
27111990 Other LPG and hydrocarbon gas |
3％ |
20％ |
0％ |
13％ |
0％ |
Updated on Mar 12, 2009