Saudi Arabia still unable to resume LPG shipments after terminal damage

Saudi Arabia’s Aramco has extended the suspension of liquefied petroleum gas (LPG) shipments through May after damage to its Juaymah export facility disrupted supplies, sending ripples through global energy markets.

The suspension stems from a structural collapse at the eastern Saudi facility that occurred before the outbreak of the US-Israel war on Iran, as reported by Bloomberg.

According to the outlet, this information was revealed by people familiar with the matter who asked not to be named, as this development has not been made public by Aramco.

The incident crippled one of the kingdom’s main LPG hubs, cutting off exports of propane and butane to international buyers. Aramco had already warned customers on February 26 that shipments from Juaymah “scheduled for the next few weeks will be cancelled.”

Saudi Arabia’s Energy Ministry later confirmed the facility was also hit by fires during attacks linked to the conflict, though the full extent of the damage remains unclear. Repairs have yet to be completed, and Aramco has reportedly been unable to carry out the necessary work.

As a result, deliveries are unlikely to resume in the near term—even if traffic through the Strait of Hormuz normalizes—leaving importers scrambling for alternatives.

The Juaymah terminal had already been offline since February 23 after part of the trestle supporting pipelines carrying propane and butane collapsed, forcing the cancellation of shipments and prompting repairs expected to take at least a month.

Those repair timelines have likely been extended by the regional conflict, which began on February 28 and paused on April 8, further complicating efforts to restore operations at one of the world’s largest LPG export hubs.

The disruption has pushed prices higher and forced major buyers, particularly in Asia, to seek replacement supplies. India has been among the hardest hit, facing shortages of LPG widely used for household cooking.

According to Kpler analysts cited by the outlet, Juaymah accounts for roughly 3.5% of global seaborne LPG exports, underscoring its importance in the international energy system.

The supply shock comes amid broader regional instability. Leaders of the Gulf Cooperation Council (GCC) met in Jeddah on April 28 for their first in-person summit since the conflict began, seeking a coordinated response to missile and drone attacks that have damaged energy infrastructure across member states.

Tensions within the bloc remain high, with senior UAE official Anwar Gargash describing the GCC’s reaction to Iranian strikes as “the weakest in history” both politically and militarily.

The fallout is already weighing heavily on regional economies. With the Strait of Hormuz nearly shut and key infrastructure impaired, economists have sharply downgraded growth forecasts across the Gulf. Several economies—including Qatar, Kuwait and Bahrain—are now expected to contract this year despite elevated oil prices, with analysts warning the economic impact could linger even if conditions stabilize.

By Nazrin Sadigova