Supply & Demand

LPG could dent LNG use in power and industrial sectors

Growth in global LPG output in recent years – led by the US – could see the fuel provide an alternative to LNG in the power and industrial sectors Growth in global LPG output in recent years – led by the US – could see the fuel provide an alternative to LNG in the power and industrial sectors.
By Peter Stewart 21 March 2018 0 30110
LPG storage, Perafita Park LPG is being touted as a potential competitor to LNG in the power and industrial sector. (Galp)

Since the 1980s gas has gradually replaced heavy fuel oil in the power sector. Now, driven by a tenfold increase in US NGL exports in the last decade, LPG is being touted as a potential competitor to LNG in the power and industrial sector.

LPG comprises propane, butane and pentane, which are produced as byproducts of hydrocarbon production and crude oil refining. Global LPG output grew by 5.75% year on year in 2017, to exceed 300 million tonnes (mt), and the glut of supply has depressed...