Saudi Aramco has temporarily suspended liquefied petroleum gas exports from its Juaymah terminal in eastern Saudi Arabia after structural damage to part of the delivery system carrying propane and butane, the company confirmed on Wednesday.
What Happened at Juaymah
The incident occurred on February 23, when a portion of the trestle carrying propane and butane pipes collapsed at the facility. Aramco immediately activated its emergency response plan and halted all LPG exports from the terminal. The company stressed that no leaks were reported and no injuries occurred during the event.
Propane and butane deliveries scheduled from Juaymah for the next several weeks have been cancelled while Aramco evaluates the scope and duration of the impact. Shipments of LPG from the company’s west coast facilities remain unaffected by the disruption.
Global Market Impact
The Juaymah terminal, located near the Jafurah gasfield and Aramco’s Ras Tanura refinery, ranks among the world’s largest exporters of liquefied natural gases. Average monthly exports from the facility reached approximately 450,000 tons in both 2024 and 2025, according to Kpler shiptracking data.
The disruption has sent ripples through global energy markets. Propane futures for March on the Far East index surged nearly five percent after the Asian market close, climbing above $590 per tonne and reaching their highest level since early April 2025.
Key Buyers Affected
The halt in deliveries comes at a critical time for Asian buyers who depend heavily on Saudi LPG supplies. Last year, at least 60 percent of LPG exports from Juaymah were destined for India, while China accounted for around 15 percent of total shipments, Kpler data showed.
Dubai-based NitrolTrading noted in a client advisory that the suspension hits propane and butane markets at the worst possible time, given the dependence of buyers in Japan, South Korea, China, and India on Saudi exports. Aramco has not yet provided a timeline for when exports will resume, stating only that the evaluation process is ongoing.
