Liquefied Petroleum Gas (LPG) was commercialized in the 1950s in Europe as it obtained fame as a cooking fuel. In recent times, LPG has gained importance in the oil & gas business. Earlier, LPG was considered a mere by-product of petroleum refining and was used for flaring. With the growth in the oil refineries, LPG was also produced in large quantities. Along with refineries, other sources of LPG such as associated and non-associated gases were developed.
The main reason for the growth of the LPG market is the applicability of LPG across various operations. LPG is replacing conventional fuels such as petrol, diesel, and coal in various applications. Subsidies given on important fuels such as LPG, Compressed Natural Gas (CNG), and kerosene, by governments of various countries, are driving the market for LPG globally. This is rapidly increasing the demand for LPG and forcing exploration companies to go for primary sources of LPG.
As it is a cleaner source of energy, the use of LPG is promoted by governments of countries such as India, Pakistan, Bangladesh, Brazil, and Argentina, among others. Several developing countries around the world promote the use of LPG as a fuel; households in these countries primarily use LPG as cooking fuel. Governments, in order to promote the use of LPG, subsidize the prices of LPG cylinders so that every household can cook using LPG. It is a cheap fuel, with lower carbon emissions and higher energy efficiency. The governments of Asian and Latin American countries have been subsidizing LPG for the poor sections of the society since decades. There are more applications of LPG apart from household purposes. One of the major applications is the use of LPG as a fuel (auto gas) in automobiles. Converting an automobile into an LPG-based automobile can reduce fuel bills up to 40%, which is a motivating factor for the use of LPG as auto gas. Since LPG results in lower greenhouse gas emissions, governments generally offer discount on taxes for cars powered with auto gas (LPG used in automobiles).
An in-depth profiling of the key players have been conducted, along with the recording of the recent developments (including new product launches, partnerships, agreements, collaborations, and joint ventures) and strategies adopted by the key players to sustain and strengthen their positions in the global liquefied petroleum gas market. Royal Dutch Shell (Netherlands), Sinopec (China), Saudi Aramco (Saudi Arabia), Qatar Gas (Qatar), and Total SA (France) are among the key players engaged in this market.