Petroleum products

LPG Trading

LPG, liquefied petroleum gas, covers commercial propane, commercial butane and their mixtures. 3FB Energy & Trade trades LPG on FOB and CIF terms, coordinating independent inspection, pressurised or refrigerated shipping and the trade documentation.

What is LPG?

LPG (liquefied petroleum gas) is a group of light hydrocarbon gases, principally propane and butane, that are liquefied under modest pressure or by refrigeration for storage and transport. It is produced from natural gas processing and crude oil refining, and is traded as commercial propane, commercial butane or a propane-butane mix. 3FB Energy & Trade trades LPG on FOB and CIF terms.

Product overview

LPG is composed mainly of propane (C3) and butane (C4). Because it becomes liquid under moderate pressure or when chilled, it can be stored and moved compactly and then returned to gas at the point of use. It is recovered both from natural gas processing and as a refinery product.

Commercial grades are defined by their propane and butane balance and by limits on heavier components, sulphur and residue. The mix is chosen for the climate and application, since propane and butane vaporise at different temperatures.

Typical specifications

ProductCommercial propane, commercial butane or propane-butane mix
Compositionpredominantly C3 / C4 per grade
Vapour pressuregrade dependent (higher for propane)
Total sulphurtypically below 50–185 mg/kg per grade
Copper strip corrosionClass 1
Residue on evaporationlimited per specification
Free waternone
Reference standardsEN 589 / ASTM D1835 and contract grade

Indicative typical values shown for orientation only. Exact quality is cargo-dependent and the final contractual specification, as confirmed in the sales agreement and verified by independent inspection, prevails.

Commercial relevance and typical uses

LPG is used for domestic and commercial cooking and heating, as an automotive fuel (autogas), and as a feedstock in petrochemical production, notably for propylene and ethylene. Demand for heating grades is seasonal, rising in colder months.

The propane-to-butane ratio is selected for the end use and climate: propane vaporises at lower temperatures and suits colder conditions, while butane carries more energy per unit volume where temperatures allow.

Quality and independent inspection

LPG is sampled and tested under pressure by an independent inspector against the agreed composition, vapour pressure, sulphur and corrosion limits, and quantity is determined from calibrated pressurised or refrigerated tanks. 3FB coordinates this appointment; firms such as SGS and Intertek are referenced as examples of inspectors active in the trade, not as partners.

Because LPG is handled as a pressurised liquid, sampling and measurement follow specific procedures. See inspection and how independent inspection works.

Shipping and logistics

LPG is carried in pressurised, semi-refrigerated or fully refrigerated gas carriers depending on parcel size and voyage, and handled through dedicated terminals. 3FB trades on FOB terms, with the buyer arranging the gas carrier, and on CIF terms, with 3FB arranging freight and insurance to discharge, as explained in FOB versus CIF.

A delivery window is agreed as a laycan, and vessel type is matched to the terminal's pressurised or refrigerated handling. See shipping and logistics.

Trade documentation

An LPG cargo is accompanied by the bill of lading, certificate of origin, certificate of quality and certificate of quantity from the inspector, and the commercial invoice, with payment commonly under a documentary letter of credit.

The bill of lading and letter of credit notes explain these instruments.

Buyer inquiry process

To request an indication, state the grade (commercial propane, commercial butane or the required mix), the volume, the delivery terms (FOB or CIF with the terminal), the laycan, the vessel or terminal handling type and the payment instrument. The desk reviews feasibility and responds with an indicative offer, subject to confirmation.

KYC and compliance review precede any definitive agreement. Start at the trading desk.

Frequently asked questions

What is LPG made of?
Mainly propane and butane. It is sold as commercial propane, commercial butane or a propane-butane mix, with the balance chosen for climate and application.
How is LPG kept liquid?
LPG liquefies under moderate pressure or by refrigeration, which allows it to be stored and transported compactly and then vaporised at the point of use.
What is LPG used for?
Cooking and heating, automotive fuel (autogas) and petrochemical feedstock for products such as propylene and ethylene.
On what terms does 3FB trade LPG?
On FOB and CIF terms. See FOB versus CIF for how each allocates freight and insurance.
How is LPG shipped?
In pressurised, semi-refrigerated or fully refrigerated gas carriers, matched to the parcel size, voyage and the handling type at the receiving terminal.
How is an LPG trade paid?
Commonly through a documentary letter of credit payable against shipping and quality documents. See trade finance.

Request LPG availability

State the grade, volume, delivery terms, laycan, handling type and payment instrument. The desk will respond with an indication.

Request LPG availability