Liquefied Petroleum Gas Market Report Scope & Overview:

The Liquefied Petroleum Gas (LPG) Market size was valued at USD 117.4 billion in 2022 and is expected to grow to USD 158.21 billion by 2030 with an emerging CAGR of 3.8% over the forecast period of 2023-2030.

 By absorbing "wet" natural gas (gas with condensable heavy petroleum components), liquefied petroleum gas (LPG) is produced. Because the recovered product has a low boiling point, the lighter must be removed by distillation.

Any of various liquid mixes of the volatile hydrocarbons propene, propane, butene, and butane is known as liquefied petroleum gas (LPG), sometimes known as LP gas. Its usage as a portable fuel source dates back to 1860, and its ion for both private and business usage has increased both production and or eternity. In a typical industrial combination, ethane, ethylene, and a pungent odorant called mercaptan may also be present safety measure.

Although olefins often make up a sizable portion of liquefied petroleum gas, which is mostly propane, they significantly raise its reactivity. For instance, LPG in Mexico City has about 5% more alkenes than LPG in the Los Angeles region, which has roughly 2 mol% (Blake and Rowland, 1995), while it is significantly more reactive than petrol the precise improvement depends greatly on the types and amounts of these reactive contaminants.

MARKET DYNAMICS

KEY DRIVERS:  

• Growing utilization of LPG in Transportation

• Expanding Government LPG Adoption Initiatives

The use of LP gas has been expanding internationally across several industries as GHG emissions reduction and guaranteeing sustainable energy for everyone have come under more and more scrutiny. The government has made major contributions in the form of programmes and subsidies to accelerate the use of LP gas. Through their "PAHAL" plan, which deposits subsidies directly into customers' bank accounts, the Indian government's initiatives more efficiently target subsidies.

RESTRAIN:

• Growth Will Be Slowed by Emphasising Zero Carbon Emission, Clean Renewable Energy, and Biofuels

OPPORTUNITY: 

• Growing demand for Autogas

• Rising Emphasis on utilization of BioLPG

Propane generated from renewable feedstocks such plant and vegetable waste are known as bioLPG, renewable propane, or bio propane. Therefore, bioLPG is a fuel that burns cleanly and has no effect on air quality. It is also a low-carbon option to switching from oil and coal in the business sector and has a long-term place in the energy mix.

CHALLENGES:

• Blockades in the Supply Chain Hurt the Growth of the Global LPG

• Developments in Internet of Things (IoT).

The usage of LP gas increases globally, with the majority of that consumption going towards heating houses and providing hot water for cooking. In the home market of developing nations, LP gas competes with conventional fuels including wood, charcoal, and coal. Because customers' disposable incomes are constrained, these conventional fuels are frequently offered to them in modest quantities. It might be difficult to introduce LPG to these users because of this sectional barrier. Smaller amounts of petrol may be offered to consumers thanks to the business models being developed by the Internet of Things (IoT).

IMPACT OF RUSSIA-UKRAINE WAR

Energy-related payments are now exempt from financial sanctions imposed on Russia by the US, EU, UK, and others, which should allow ongoing flows on existing contracts, but a lot of global trade firms are avoiding doing new business with Russia. LPG shipments from the Baltic and Black Seas have steadily decreased as local petrochemical usage increased. From 3.5 MMt/y, Russian seaborne exports were about 1 MMt/y in 2021. Exports were expected to rise to 1.5 MMt/y in 2022 along with increased gas output before the conflict, but the future of that expansion is now questionable. The Baltic Sea accounts for over 75% of Russia's exports of LPG via sea. The Mediterranean and Eastern Europe each receive roughly 30% of it, with two thirds going to Northwest Europe. Due of the tiny total amounts, it looks that Europe will be the region to have the most impact.

KEY MARKET SEGMENTATION

By Source

• Refinery

• Associated Gas

• Non-Associated Gas

By Application

• Residential/Commercial

• Chemical

• Industrial

• Autogas

• Refinery

• Others

REGIONAL ANALYSIS

Asia Pacific is the region with the greatest market for LP gas, because LP gas is so widely used as a major fuel for cooking and water heating in households. There are plenty of supplies of LP gas, and forecasting data indicates that, barring a significant political upheaval, prices will remain low for an extended period of time. The chemical industry has experienced phenomenal expansion.

The second-largest market for LP gas is still Europe, which also continues to be a regional powerhouse. However, compared to the more established markets in the northwest and south of Europe, central and eastern Europe has seen a lot more development in recent years. The main fuel for off-grid heating in Europe is LP gas. Statistics are starting to demonstrate that some businesses, particularly in the light industrial sector, may be making the conversion to LP gas.

REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

RECENT DEVELOPMENTS

• Maire Tecnimont S.p.A. declared in October 2022 that its main subsidiary, Tecnimont S.p.A., had been given an EPC contract by SONATRACH's Direction Centrale Engineering & Project Management for the construction of an LPG extraction plant inside the already-existing Rhourde El Baguel oil and gas treatment complex in northeastern Algeria. In total, the deal is around around 380 million USD.

• Indian Oil Corp. (IOC) announced plans to build three additional facilities in Northeast India in February 2022, increasing its capacity to bottle LPG by roughly 53%, or to 8 crore cylinders annually by 2030, in order to fulfil the region's rising demand. The Between USD 43 and USD 46 million will likely be invested overall in the facility developmenT.

• The four-year, about USD $2 billion deal was signed in March 2021 by the Abu Dhabi National Oil Company (ADNOC) and Pertamina, the national oil company of Indonesia. The LPG and sulphur sales deal, which is a component of the Indonesia-Emirates "Amazing Week 2021," will endure for 4 years and have an annual contract value of about USD 500 million. The agreement also stipulated that the sum can alter in response to shifts in the value of certain goods on the world market.

KEY PLAYERS

The Major Players are China Gas Holdings Ltd., Saudi Arabian Oil Co., FLAGA Gmbh, Kleenheat, Bharat Petroleum Corporation Limited, JGC HOLDINGS CORPORATION, Phillips 66 Company, Chevron Corporation, Reliance Industries Limited, Exxon Mobil Corporation, Total, Royal Dutch Shell, and other players are listed in a final report.

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