Global LPG Market
The global LPG market is steadily growing. As of 2013, global LPG production is estimated to be 260 million tons, and it is expected to rise to 330 million tons in 2020. This is mainly due to new projects, such as new shale developments in Northern America and gas field discoveries in the Middle East. The increase in LPG production is expected to be absorbed by the petro-chemical industries in the Middle East and other Asian regions, as well as other applications in developing countries. It is also expected that the increased production will lead to the rapid growth of international LPG transactions.
LPG traded based on different pricing indices in different regions and countries. In the Far East including South Korea, FEI (Far East Index) or CP (contract price), which is announced by Saudi Aramco on a monthly basis, is the most widely used index, while the United States uses MB (Mont Belvieu) and European countries use CIF ARA and SP (Sonatrach Price).
Global LPG Trader, SK gas
SK Gas, a leading LPG trader on the international stage.
Starting business operations as an importer playing an active role in the international spot market to import LPG to meet domestic demands, SK Gas has expanded its business portfolio through progressive expansion to enter the trading business, and now is active in intermediate trading, swapping and futures trading. Geographically, SK Gas is acquiring products from Saudi Arabia, U.A.E, Kuwait, Qatar and other gas producing countries in the Middle East, Northern and Southern America and Africa, while supplying to not only South Korea but also Japan, India and other Asian countries.
SK Gas is participating in international transactions around the clock, in collaboration with SK Gas International, an affiliate in Singapore, and other branch offices in major cities including Dubai and Huston. Through this global network, market intelligence is gathered and communicated across the organization, driving the trading business and fueling business development in foreign countries.
Harmony between Top Professionals and High Quality System
SK Gas employs top professionals with the best hands-on experience and knowledge. Working in every single sector from market research, ship operations and trading to overseas business development, this enviable pool of human resources is also being developed to be industry-oriented experts through systematic development programs and career management systems. To support the momentum and motivation to enhance global leading trading competencies, SK Gas has established and implemented good infrastructures to support the mutual development of employees and the organization.
SK Gas has established world-class LPG storage facilities and relevant systems to manage the facilities. It also implemented market analysis and risk management systems to enhance its global market profile and to cope with any changes in the market. In addition, it also has a knowledge management system to attain, develop and communicate silent knowledge and information throughout the organization.
When explaining the LPG trading business, one cannot help but mention gas carriers. A gas carrier, a ship specially designed to transport LPG is essential for the seaborne transport of LPG. Gas carriers can be categorized into four types depending on capacity; VLGC(Very Large Gas Carrier), LGC(Large Gas Carrier), MGC(Medium Gas Carrier) and Handy Size, or three types depending on the loading method; Refrigerated, Semi-refrigerated and Pressurized. For its LPG trading business, SK Gas is operating 6 VLGCs based on long-term leasing.