With the conventional fuels seeing a cease to exist in the upcoming times, LPG – Liquified Petroleum Gas is considered to be a real and major game-changer in the shift of human attention of use of resources from traditional fossil fuels to a cleaner, better and efficient resource material.
LPG is a co-product of natural gas and petroleum. Because of its unique properties, it can be used in more than a thousand applications, which means, it’s not just for our home use but it holds immense potential in acting as a resource for numerous fields.
LPG provides business in both Developing and Developed countries with a mark of Reliable energy. Also, this industry employs millions of people globally.
Also, as several Rural areas are deficient in Natural Gas, LPG is an ideal and promising energy source for these insecure areas. LPG is pivotal in kicking out conventional fuels. Noting the things mentioned above, it makes LPG a suitable product for which market can be set-up and thus trade can take place in various domains with huge opportunities available in such a vast and versatile arena.
On a global scale, the LPG market was valued at somewhere 116 billion in the year 2019. The major countries which are accredited for Liquified Petroleum Gas production are – The United States of America, Saudi Arabia, China, Russia, and others in the field.
In the following years, North American and European economies are expected to see a spurt in demand for LPG as a result of massive awareness among people about carbon emissions and the consequences of the same. On regional grounds, the Asia Pacific accounted for massive shares of the LPG market in Recent times.
LPG is becoming a rapid choice for various industries where the natural gas supplies are not extensible or are available easily. With the ease of access, LPG provides to its users, it’s becoming the favorite energy resource for all. In the upcoming article, we will further understand how LPG is making a space for itself and is becoming an inevitable product for every nation.
The flammability of LPG with hazardous constraints turns out to be a hurdle in the market’s growth. Also, the price instability and vulnerability of Crude Oil hamper the market’s growth. Push given through government programs like Pradhan Mantri Ujjawala Yojana is some of the propelling factors for popularity and awareness of such useful products.
The Liquified Petroleum Gas market is primarily distributed in application purposes which are personal / household, commercial, industrial such as chemical industries, and for automobiles with divisions which can be made within sources such as Refineries, Associated and Non-associated Gas.
The market is segmented based on regions as North America, Asia-Pacific, Middle-East Africa, Latin America, and Europe. With the highest population numbers in countries like China and India, it is obvious that there are potential market opportunities available here with LPG in the household domain especially.
International Markets seem to be opportunistic because of infrastructure development and petrochemical projects being undertaken in countries like Canada and Australia which are likely to provide a boost to exports of Gas.
Versatility. As stated earlier because of the various applications of LPG it is the utmost choice as a fuel. Secondly, it has a higher calorific value which indicated that it is much efficient than its counterparts namely: Petrol and Diesel. Additionally, it offers the benefits of being cheap and easy transportation.
Besides, as compared to CNG, which has the demerit of reduced storage capacity, LPG can be stored easily as well with an environment easy to make or conditions easy to achieve. The plus point is – no soil and water pollution at all but air pollution is a factor to be taken into consideration. Finally, the obvious factor – the best clean fuel we are available within the present times.
To add, on the other side of being economical, governments are providing subsidies and are encouraging policies that boost the use of LPG by the general public as well as the investment of firms utilizing LPG for their cause, thus adding to the economy and saving the environment at the same time as well.
The Research and Development also in the field doesn’t seem to have a stop because new or advanced/modified products being introduced in the market which enables this market to flourish such as Composite LPG Cylinders, Advanced Piping for ease of supply, Ultrasonic Meters enabling industries to keep track of their piping Networks efficiently, with various other things like Advanced Pumps, pressure Vessels, Storage Equipements, Compressors and many more.
Companies in the LPG market are formulating new methodologies for easy access to LPG. Gazprom, a Russian company is considered to be the world’s top listed Natural Gas company. Some of the major competitors in this arena can be listed as the following:
And the list continues.
The oil marketing companies and the parallel marketing companies are the major force and players as well in the LPG market. Additionally, new players coming into the marketplace with innovative ideas facilitating the utilization of LPG in relatively advanced manners will surely make the market more competitive.
For India, it becomes crucial to develop business strategies to potentially extract and handle LPG supplies since it lands at number 4th in LPG consumption which makes it is an attractive marketplace for MNC’s to develop their market in the country with so much vulnerability of consumers available at hand.
After examining all the possible and expected horizons in which Liquified Petroleum Gas identifies itself, it comes with no doubt that LPG will make a good and profitable market in the upcoming times with the promising values it holds. Although, the market in present times may not have been progressive that is mainly due to the effects of Covid-19 which has impaired various markets. As per researchers and statistical analysts, the forecast of LPG in the nearby future seems rewarding.
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