Algeria's Sonatrach has raised its LPG export prices, with a 40% increase in butane prices. This move is expected to boost revenue from the sale of this petroleum product. The price hike is attributed to strong demand and limited supply in the global market. According to Sonatrach's annual report for 2025, the company's hydrocarbon production reached 193.7 million tons of oil equivalent (TEP).
Sonatrach's production breakdown for 2025 includes 47.5 million tons of crude oil, 134.3 billion cubic meters of natural gas, 8.3 million tons of condensate, and 7 million tons of LPG. LPG is a crucial product derived from crude oil and natural gas processing. It is used in various forms, including butane for domestic use and propane as a vehicle fuel.
In 2025, Algeria's LPG exports reached 6.1 million tons, a slight 0.1% increase from the previous year. Meanwhile, global market data shows that Sonatrach and Saudi Aramco have increased their LPG prices, which serve as a benchmark for the Mediterranean and Asian markets. Sonatrach raised its propane and butane prices for November by 23% and 40%, respectively.
Sonatrach's new official selling prices (OSPs) for LPG are $825 per ton for propane and $1,050 per ton for butane, representing increases of $155 and $300 per ton, respectively. In comparison, Saudi Aramco's price hikes for propane and butane are 5.9% and 6.8%, respectively. The Saudi company's butane price rose by $40 per ton to $720, while butane prices increased by $50 per ton to $780.
The price increases are attributed to strong seasonal demand and limited LPG supply in global markets. Sonatrach's OSPs serve as a benchmark for the Mediterranean and Black Sea regions, including Turkey, while Saudi Aramco's prices are used as a reference for the Middle East and Asia-Pacific regions.
Algeria is a significant player in the global LPG market, with a large number of vehicles running on propane and butane used for domestic purposes in areas not connected to the natural gas grid. The country's LPG exports are expected to continue growing, driven by increasing demand and limited supply.
The price hike by Sonatrach is expected to have a positive impact on Algeria's economy, which has been seeking to boost revenue from its hydrocarbon sector. The country's economy has been facing challenges in recent years, and the increased LPG export prices are likely to provide a welcome boost to state finances.
Key points
- Sonatrach increased its LPG export prices by 23% and 40% for propane and butane, respectively.
- Algeria's LPG exports reached 6.1 million tons in 2025, a slight 0.1% increase from the previous year.
- The price increases are attributed to strong seasonal demand and limited LPG supply in global markets.
