Malaysia to Boost LPG Imports from Iran

Malaysia to Boost LPG Imports from Iran

We wish to add the amount of imported LPG from Iran," Wiratmaja said.

He said that the Malaysian government has been exploring the option since the country's Economy Minister Darmin Nasution visited Iran in February.

Wiratmaja said Malaysia wants to double LPG imports from Iran from 500,000 tons to one million tons.

He confirmed that a rise in LPG imports from Iran would have an impact on the amount of LPG imports from other countries, specially Saudi Arabia.

Wiratmaja said that Saudi Arabia's Aramco had been notified of the decision during King Salman’s recent visit to Malaysia.

He, however, declined to reveal Saudi Aramco’s reaction to the potential decrease in LPG import from that country.

Iran has been ramping up crude oil production to win back its market share since sanctions were lifted on the country under a nuclear accord.

Saudi Arabia was behind a decision at OPEC to scrap a production ceiling after the West intensified sanctions on Iran in 2012.

In mid-February, the crude market figures showed that Saudi Arabia lost a significant share of South Korea’s oil market to Iran.

South Korea’s imports of crude oil from Iran doubled in January, the latest figures said.

The preliminary customs data showed that Iran exported around 1.79 million tons of crude oil to South Korea, Asia’s fourth largest oil buyer, in January.

This development takes market share away from Iran’s key rival, Saudi Arabia, oilprice.com website reported.

South Korea’s imports of crude oil from Iran’s regional rival Saudi Arabia dropped by 17.3 percent in January compared to December 2016, to 785,084 bpd, as the Saudis are complying with a supply-cut deal agreed by the Organization of the Petroleum Exporting Countries (OPEC).

South Korea’s total crude oil imports from all oil-exporting nations increased by 14 percent annually to 2.93 million bpd in January, South Korea’s customs office said.

Among producers, Iran was the biggest beneficiary of a recent rise in South Korea’s consumption, with imports from it skyrocketing by 147.7 percent on the third quarter of 2015.

Source:Fars