• Saudi Aramco has extended the suspension of LPG deliveries from its Juaymah export terminal through May, as repairs continue.
  • The outage is tightening global LPG supply, boosting benchmark prices and prompting importers to seek alternative sources.
  • Traders and analysts are closely monitoring repair progress, with full resumption uncertain.

Juaymah Outage Drags On

Saudi Aramco has prolonged the halt of LPG shipments from its key Juaymah terminal, with industry sources indicating that some deliveries may remain suspended through May. The state-owned giant initially paused exports in late February for repairs, but the work has taken longer than expected, according to people familiar with the matter.

The disruption is already rippling through global LPG markets. Spot prices for propane and butane have climbed in recent weeks as buyers scramble to cover near-term needs. “Without a deal to restart flows, we’re seeing a scramble for cargoes,” one trader said, speaking on condition of anonymity because they are not authorized to comment publicly.

Aramco declined to comment on the timeline when reached by phone. The company’s leadership has emphasized supply reliability, but the prolonged outage underscores operational challenges at a facility that typically handles a significant portion of the kingdom’s LPG exports.

Market Impact and Alternatives

The Juaymah outage has particularly hit Asian importers, who rely heavily on Saudi LPG for cooking, heating, and petrochemical feedstocks. Some buyers have turned to alternative suppliers in the US and Qatar, adding pressure on already tight shipping schedules. “The market was already balancing after winter demand; this just amplified the strain,” noted a Singapore-based analyst.

While Aramco has previously curtailed LPG exports for maintenance, the duration of this outage is notable. In 2024, similar repairs were resolved within weeks. The extended suspension raises questions about the terminal’s infrastructure and Aramco’s broader export strategy.

Outlook

Traders will focus on repair updates from Juaymah in the coming weeks. If flows resume by May, price spikes may ease, but any further delays could trigger deeper supply reallocation. For now, the market remains on edge.

Correction: An earlier version of this article misstated the start date of the suspension. It began in late February, not March.