Liquefied Petroleum Gas Overview Transcript
Liquefied petroleum gas or LPG is a mixture of propane and butane. LPG is a by-product of crude oil refining or it can be extracted from oil or it can be synthesised as part of the process of making ethylene from light oil or light hydrocarbons.
LPG is a low carbon emitting and low polluting fossil fuel. It has a high calorific value and is easily stored. This makes LPG a good fuel for cooking or heating or as an industrial feedstock.
Residential consumption accounts for 54% of China’s domestic consumption. Industry consumes around 30% of China’s LPG. Commercial applications use around 30% and the automotive sector uses about 4%.
In China domestic LPG is mostly produced in refineries with about 14% imported, mostly into south and east China.
The Chinese LPG market is not regulated and price depend on supply and demand which means that it changes frequently.
It faces pressure in the heating market from the expanding natural gas market and it is transitioning into a feed gas for further petrochemical processing.