Liquefied petroleum gas commonly termed as LPG is a form of energy which is co produced during crude oil and natural gas production; it is a portable, clean and versatile form of energy which is used in more than 1,000 different applications. It is also non hazardous in nature as it emits 50% less CO2 than coal and 20% less CO2 than heating oil, making it efficient for cooking purpose.
The world is moving towards LPG for the above mentioned reasons creating more demand for LPG across the globe. The global market (in terms of volume) of LPG in the year 2010 was estimated to be around 250 million tons which has increased to 270 million tons in 2012 which grew at the rate of around 2.7%. Global demand for LPG in the year 2012 was estimated to be around 267 million tons, which is expected to exceed 300 million tons by the year 2015 owing to growing demand worldwide.
The major factors which are driving the LPG market includes clean and efficient source of fuel, growing demand from automobile industry where it is used as auto-gas, global usage of LPG as cooking fuel and government support. Crude oil price volatility and the global economic scenario are acting as restraints for the global LPG market.
Huge opportunities exists in the emerging economies like India and China where LPG market is expected to grow at a fast pace. The Asia Pacific market is the fastest growing LPG market which is growing at a rate of around 5%. One of the main reasons for the growth of the Asian LPG market is the demand from Japan and Korea. In Japan and Korea about 94% of the taxis run on LPG auto-gas.
The biggest market for LPG in terms of its application is as a domestic and commercial fuel with 47% share, followed by its usage as a feedstock with 31% market share. LPG as a transportation fuel contributes around 9% and its use in industry is around 11% of the total LPG market by application.
Some of the major players in the LPG market includes: SHV Energy (Netherlands), Exxon Mobil (USA), Shell (Netherlands), Chevron (USA), British Petroleum (UK), Total (France) and more.