Saudi Aramco has canceled scheduled March-loading LPG term cargoes following a structural collapse of propane and butane pipelines at its Juaymah natural gas liquids $(NGL)$ facility in the port of Ras Tanura on Monday, India-based sources confirmed on Thursday.

While the duration of the disruption remains unclear, analysts said a prolonged outage could affect nearly 300,000 metric tons of LPG shipments per month, equivalent to around six to seven Very Large Gas Carriers.

Some sources said Aramco's customers could seek U.S. cargoes as an alternative supply, although securing replacement barrels may be challenging as most March loading and delivery discussions have largely concluded.

The incident has also added uncertainty to the market, raising concerns over potential supply shortages. Sources said this is likely to lend support to higher Saudi Contract Prices, or CPs.

March CP swaps opened at $550/mt in Asia market hours on Thursday, up from $539/mt at the previous close, OPIS data showed.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

By Cheryl Lee, clee@opisnet.com; Editing by Lujia Wang, lwang@opisnet.com

(END) Dow Jones Newswires

February 26, 2026 03:12 ET (08:12 GMT)

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