LPG is used for cooking and heating, as automotive fuel and as petrochemical feedstock. Petrochemicals account for about 20% of consumption, with other industry and households taking the remainder. These products are shipped to markets in special vessels, and largely sold by Statoil as separate commodities. Most of Statoil’s LPG is shipped in large carriers to terminals around the world, but a significant proportion travels by small ships to markets in north-western Europe.

Statoil occupies a strong position in LPG sales, and has established a global trading organisation for this commodity. North-western Europe is its biggest market, taking more than half the LPG sold by the group. The rest goes to Asia, the USA and the Mediterranean region. Statoil has more than 10% of the global waterborne LPG market, and Norway ranks as the world’s third largest exporter of this product after Saudi Arabia and Algeria.

Annual sales of LPG by Statoil amount to roughly seven million tonnes, with the main volumes supplied from its Kårstø and Mongstad plants in western Norway. These have large storage facilities, such as fully-refrigerated rock cavern stores (two at Kårstø and one at Mongstad) and modern ports. These facilities have established Statoil as a major global player in the market, with opportunities to export LPG to distant recipients. Kårstø and Mongstad rank as the most modern and efficient LPG terminals in western Europe.

LPG is also sold from the smaller Sture plant in Norway, close to Mongstad, Braefoot Bay and Teesside in UK, Stenungsund in Sweden and other locations where Statoil has equity and traded volumes