Algeria's national oil company, Sonatrach, has increased its official selling prices for liquefied petroleum gas (LPG) for November 2026 cargoes. The price hike affects both propane and butane, surpassing Saudi Aramco's increases during the same period. According to data from industry platform Attaqa, Sonatrach's propane price rose $155 per ton to $825, a 23% increase from October's $670.
The price surge is more pronounced for butane, which jumped $300 per ton to $1,050, up from $750 in October, representing a 40% increase. In contrast, Saudi Aramco raised its propane price by 5.9% to $720 per ton and butane by 6.8% to $780. Sonatrach and Aramco's pricing serve as benchmarks for the global LPG market, influencing trends in the Mediterranean, Black Sea, and Asia-Pacific regions.
The price hike occurs amid a global rise in crude oil prices, intensifying energy demand, and typical supply tensions. The LPG market is also influenced by seasonal factors and maritime freight costs. As a key player in the Organization of Arab Petroleum Exporting Countries (OAPEC), Algeria's production reached 293,800 barrels per day in 2024, maintaining its regional leadership.
Although Algeria's production decreased slightly from 2023's 305,400 barrels per day, it remains well ahead of other OAPEC member states. Saudi Aramco's LPG production increased by 28.2% to 31,800 barrels per day in 2024. LPG, primarily composed of propane and butane, is crucial for cooking, heating, and automotive fuel, as well as a key petrochemical industry feedstock.
Sonatrach's price adjustments reflect its dominant position in the Mediterranean and Black Sea markets, particularly in Turkey. The company's pricing strategy is closely watched by industry stakeholders, given its significant influence on regional LPG trends.
The current market dynamics, characterized by strong demand and supply constraints, have driven Sonatrach to revise its prices upward. The company's leadership in OAPEC and its substantial production capacity enable it to play a significant role in shaping the global LPG market.
As the global energy landscape continues to evolve, Sonatrach and other major producers will likely adjust their strategies in response to changing market conditions. The company's ability to adapt to these changes will be crucial in maintaining its position as a leading player in the international energy market.
Key points
- Sonatrach raises LPG prices for November 2026 cargoes, citing strong demand and global market trends.
- Algeria maintains its leadership in OAPEC with a production of 293,800 barrels per day in 2024.
- Sonatrach's pricing strategy significantly influences LPG trends in the Mediterranean and Black Sea regions.
