Report_LPG Market Analysis And Forecast

Liquefied Petroleum Gas Market Analysis And Forecast

U n i v e r s i t y O f P e t r o l e u m A n d E n e r g y S t u d i e s

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LPG Market Analysis And Forecasts

Report Submitted In Partial Fulfillment Of

Requirements

For

MBA (Energy Trading)

Batch 2013-2015

University of Petroleum and Energy Studies

Dehradun

SUBMITTED TO:

Mr. Somya Sharma

College of Management Studies

University of Petroleum and Energy Studies

SUMITTED BY

Vindyanchal Kumar (R590213042)

MBA Energy Trading 2013-2015



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Acknowledgement

Completing a task is never a solo effort. It is often the result of invaluable contributions

by a number of individuals in a direct or indirect manner, which helps in the shaping and

achievement of success.

Firstly, I would like to express my sincere gratitude to Mr. Charanjeet Ailsinghani,

Managing Director, for granting me the opportunity to undertake an internship at the

Grandview research.

I am extremely grateful to my project guides, Mr. Anshuman Bahuguna, senior

research analysis for their encouragement and patience throughout the duration of this

project. Without their vision, guidance and support this report would not have

materialized.

I would also like to deeply thank the other people at Grandview research, which during

the period of my internship, provided me with useful and helpful assistance. Without their

care and consideration this report would not have been completed.

I am thankful to the Internship Coordinators at University of Petroleum And Energy

Studies Mr. Anubhav Sharma for their invaluable support and guidance during the

internship period.

Last but not the least; I would like to thank my parents for their inestimable love, support

and encouragement which gave me the confidence and determination to carry out this

project.

Signature of Student

Vindyanchal Kumar

Place:

Date:



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Certificate of Originality This is to certify that the project titled “LPG Market Analysis And Forecasts” is an original

work of the student and is being submitted in partial fulfillment of master degree in

business administration (MBA Energy trading) of University of Petroleum and Energy

Studies, Dehradun for the fulfillment of requirement of the course of study. This report

has not been submitted earlier to any other university/institution for the requirement of a

course of study.

Signature of Student

Vindyanchal Kumar

Place:

Date



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Abstract Project Title: LPG Market Analysis This report is an outcome of the exercise I conducted during my internship which was

of 13 weeks at "Grandview Research”, which is a research and consultation company.

Liquefied petroleum gas (LPG) is a hydrocarbon which is produced during processing

of crude oil and natural gas production. It is a clean form of energy which is used in

various applications. Along with this LPG environment friendly as produce 50% less

carbon dioxide than coal and 20% less carbon dioxide than heating oil.

The global LPG industry has increased rapidly over the past decade and experienced

several significant changes such as improvement in channel of distribution, development

of new light-weight metal and/or composite cylinders coupled with development of

telemetry (remote management systems), constitute significant improvements in terms of

safety, and facility of use. Emergence of LPG for various applications around the world

has contributed to the growth of its demand in the past. Application of LPG as fuel in

commercial and residential market is booming in many developing countries owing to

government relaxation and subsidy grant.

The projections for the global LPG industry continue to seem favorable. Markets for LPG

in emerging countries such as China, India and Brazil will expand as more people are

getting aware of LPG coupled with efficient infrastructure are added to proficiently

distribute and market the product. Global LPG consumption grew across various regional

markets such as Asia Pacific and Latin America owing to improvement in per capita LPG

consumption in some sector such as residential, commercial and industrial. In addition

rowing demand from automobile industry where it is used as auto-gas due to stringent

carbon dioxide (CO2) emission norms and government regulations expected to boom

market growth.

Owing to high calorific value, LPG is significantly used in household, commercial,

agricultural, industrial and manufacturing application. In addition LPG can also be used

for lighting, powering vehicles and cogeneration. Growing government initiative to

promote LPG as cooking fuel primarily in emerging economies such as India, China,

Indonesia and South Africa has been one of the key factors driving the global demand

for LPG. However, fluctuation in LPG raw material price such as pentane, butane and

ethane, insufficient CNG and LPG service stations infrastructure and a poor refueling

station network in developing nation expected as resistant for LPG market growth. In

addition capital-intensive nature of LPG projects coupled with long gestation period



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considered to be another resistant for the market due to which investors are reluctant to

invest in LPG projects.

Table of Contents

CHAPTER 1 EXECUTIVE SUMMARY ............................................................................................... 10

CHAPTER 2 SCOPE AND RESEARCH METHODOLOGY .................................................................... 16

2.1 RESEARCH OBJECTIVE ......................................................................................................................... 16

2.1.1 Primary .................................................................................................................................... 16

2.1.2 Secondary objectives: .............................................................................................................. 16

2.2 RESEARCH SCOPE & ASSUMPTIONS ...................................................................................................... 17

2.3 LIST OF DATA SOURCES ...................................................................................................................... 17

2.4 LITERATURE REVIEW .......................................................................................................................... 17

2.4.1 LPG Industry Road Map ........................................................................................................... 18

2.4.2 World LPG Market Outlook ...................................................................................................... 18 2.4.2.1 Finding ............................................................................................................................................ 18

2.4.3 Oil in charge ............................................................................................................................. 18 2.4.3.1 Finding ............................................................................................................................................ 19

2.4.4 Natural gas: Analysis of change in market price ..................................................................... 19 2.4.4.1 GAO undertook a study to ............................................................................................................. 19 2.4.4.2 Finding ............................................................................................................................................ 19

2.4.5 Oil price volatility and U.S macroeconomic activity ................................................................. 20 2.4.5.1 Result: ............................................................................................................................................ 20

2.5 LIMITATION ..................................................................................................................................... 20

CHAPTER 3 LPG: INDUSTRY ANALYSIS .......................................................................................... 21

3.1 MARKET SEGMENTATION ................................................................................................................... 21

3.2 VALUE CHAIN ................................................................................................................................... 22

3.3 LIQUEFIED PETROLEUM GAS (LPG) – MARKET DYNAMICS ........................................................................ 23

3.4 MARKET DRIVER ANALYSIS .................................................................................................................. 24

3.4.1 Increasing demand for natural gas vehicles (NGV) .................................................................. 25

3.4.2 Shift towards replacing coal and wood as a domestic fuel ...................................................... 26

3.5 MARKET RESTRAINT ANALYSIS .............................................................................................................. 28

3.5.1 Volatility in raw material prices ............................................................................................... 28

3.1 INDUSTRY ANALYSIS – PORTER’S .......................................................................................................... 29

3.1.1 Bargaining power of suppliers ................................................................................................. 30

3.1.2 Bargaining power of buyers ..................................................................................................... 30

3.1.3 Threat of substitutes ................................................................................................................ 30

3.1.4 Threat of new entrants ............................................................................................................ 31

3.1.5 Degree of competition ............................................................................................................. 31

3.2 COMPANY MARKET SHARE ANALYSIS ..................................................................................................... 32

3.1 LPG INDUSTRY – PESTEL ANALYSIS ..................................................................................................... 33

CHAPTER 4 LPG :DATA ANALYSIS BY SOURCE ............................................................................... 34

4.1 LPG MARKET VOLUME SHARE BY SOURCE, 2013 & 2020 ........................................................................ 34

4.2 REFINERY ........................................................................................................................................ 35



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4.2.1 Global refinery market volume and revenue, 2012-2020 ........................................................ 35

4.2.2 Global refinery market volume and revenue by region, 2012-2020 ........................................ 36

4.3 ASSOCIATED GAS .............................................................................................................................. 37

4.3.1 Global associated gas market volume and revenue, 2012-2020 ............................................. 37

4.3.2 Global associated gas market volume and revenue by region, 2012-2020 ............................ 38

4.4 NON ASSOCIATED GAS ........................................................................................................................ 39

4.4.1 Global non associated gas market volume and revenue, 2012-2020 ...................................... 39

4.4.2 Global Non associated gas market volume and revenue by region, 2012-2020...................... 40

CHAPTER 5 LPG : DATA ANALYSIS BY APPLICATION...................................................................... 41

5.1 LPG MARKET VOLUME SHARE BY APPLICATION, 2013 & 2020 ................................................................. 41

5.2 RESIDENTIAL/COMMERCIAL ................................................................................................................ 42

5.2.1 Global demand for LPG market from Residential/Commercial 2013-2020 ............................ 42

5.2.2 Global demand for LPG market from Residential/Commercial, by region, 2012-2020 .......... 43

5.3 CHEMICAL ....................................................................................................................................... 44

5.3.1 Global demand for LPG market from Chemical , 2012-2020 .................................................. 44

5.3.2 Global demand for LPG market from Chemical, by region, 2012-2020 .................................. 45

5.4 INDUSTRIAL ...................................................................................................................................... 46

5.4.1 Global demand for LPG market from Industrial, 2012-2020................................................... 46

5.4.2 Global demand for LPG market from Industrial, by region, 2012-2020 .................................. 47

5.5 AUTO FUEL ...................................................................................................................................... 48

5.5.1 Global demand for LPG market from auto fuel, 2012-2020 ................................................... 48

5.5.2 Global demand for LPG market from auto fuel, by region, 2012-2020 .................................. 49

5.6 REFINERY ........................................................................................................................................ 50

5.6.1 Global demand for LPG market from refinery, 2012-2020 ..................................................... 50

5.6.2 Global demand for LPG market from refinery, by region, 2012-2020 ..................................... 51

5.7 OTHER ............................................................................................................................................ 52

5.7.1 Global demand for LPG market from others, 2012-2020 ........................................................ 52

5.7.2 Global demand for LPG market from others, by region, 2012-2020 ....................................... 53

CHAPTER 6 LPG: DATA ANALYSIS BY REGIONAL ........................................................................... 54

6.1 LPG MARKET VOLUME SHARE BY REGION, 2013 & 2020 ........................................................................ 54

6.2 NORTH AMERICA .............................................................................................................................. 55

6.2.1 North America LPG market estimates and forecast, 2012-2020 ............................................ 55

6.2.2 North America LPG market estimate and forecast by source, 2012 – 2020 ........................... 55

6.2.3 North America LPG market, by application, 2012 – 2020 ....................................................... 56

6.3 EUROPE .......................................................................................................................................... 58

6.3.1 Europe LPG market estimates and forecast, 2012-2020 ........................................................ 58

6.3.1 Europe LPG market estimate and forecast by source, 2012 – 2020 ....................................... 59

6.3.2 Europe LPG market, by application, 2012 – 2020 ................................................................... 59

6.4 ASIA PACIFIC .................................................................................................................................... 61

6.4.1 Asia Pacific LPG market estimates and forecast, 2012-2020 .................................................. 61

6.4.2 Asia Pacific LPG market, by source, 2012 – 2020.................................................................... 62

6.4.3 Asia Pacific LPG market, by application, 2012 – 2020 ............................................................ 62

6.5 MIDDLE EAST & AFRICA ..................................................................................................................... 64

6.5.1 Middle East & Africa LPG market estimates and forecast, 2012-2020 ................................... 64

6.5.2 Middle East & Africa LPG market, by source, 2012 – 2020 ..................................................... 66

6.5.3 Middle East & Africa LPG market, by application, 2012 – 2020 ............................................. 67



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6.6 LATIN AMERICA ................................................................................................................................ 68

6.6.1 Latin America LPG market estimates and forecast, 2012-2020 .............................................. 68

6.6.2 Latin America LPG market, by source, 2012 – 2020 ............................................................... 69

6.6.3 Latin America LPG market, by application, 2012 – 2020 ........................................................ 70

CHAPTER 7 COMPANY PROFILES .................................................................................................. 71

7.1 EXXONMOBIL ................................................................................................................................... 71

7.1.1 Company Overview .................................................................................................................. 71

7.1.2 Financial Performance ............................................................................................................. 71

7.1.3 Product Benchmarking ............................................................................................................ 71

7.1.4 Strategic Initiatives .................................................................................................................. 71

7.2 VALERO ENERGY CORPORATION........................................................................................................... 72




7.3 SINOPEC .......................................................................................................................................... 73



7.3.3 Strategic Initiative .................................................................................................................... 73

7.4 BP PLC ........................................................................................................................................... 74





7.5 INDIAN OIL CORPORATION (IOCL) ....................................................................................................... 75





CHAPTER 8 CONCLUSION ............................................................................................................. 76

SHIFT TOWARDS REPLACING COAL AND WOOD AS A DOMESTIC FUEL ......................................................................... 76

Volatility in raw material prices ............................................................................................................ 76

CHAPTER 9 LIMITATION ............................................................................................................... 79

CHAPTER 10 BIBLIOGRAPHY ........................................................................................................... 80

List of Tables

TABLE 1 LIQUEFIED PETROLEUM GAS (LPG) – INDUSTRY SUMMARY & CRITICAL SUCCESS FACTORS (CSFS) ................... 10

TABLE 2 GLOBAL LIQUEFIED PETROLEUM GAS (LPG) MARKET: VOLUME, REVENUE, 2012 – 2020 ............................. 10

TABLE 3 GLOBAL LPG SOURCE MARKET: VOLUME (MILLION TONS), 2012 - 2020 .................................................. 11

TABLE 4 GLOBAL LPG SOURCE MARKET: REVENUE (USD BILLION) ......................................................................... 12

TABLE 5 GLOBAL LPG APPLICATION MARKET: VOLUME (MILLION TONS) ................................................................. 13

TABLE 6 GLOBAL LPG REGION MARKET: VOLUME (MILLION TONS), 2012 – 2020 .................................................. 14

TABLE 7 GLOBAL LPG REGION MARKET :REVENUE, (USD BILLION), 2012 – 2020 ................................................... 14

TABLE 8 LIQUEFIED PETROLEUM GAS (LPG) – KEY MARKET DRIVER IMPACT ............................................................. 24

TABLE 9 GLOBAL REFINERY MARKET: VOLUME(MILLION TONS) REVENUE(USD BILLION) ........................................... 35



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TABLE 10 GLOBAL REFINERY MARKET BY REGION: VOLUME (MILLION TONS) ......................................................... 36

TABLE 11 GLOBAL REFINERY MARKET BY REGION : REVENUE(USD BILLION) ........................................................... 36

TABLE 12 GLOBAL ASSOCIATED GAS : VOLUME (MILLION TONS) AND REVENUE(USD BILLION) .................................. 37

TABLE 13 GLOBAL ASSOCIATED GAS BY REGION :VOLUME, (MILLION TONS) .......................................................... 38

TABLE 14 GLOBAL ASSOCIATED GAS BY REGION : REVENUE (USD BILLION) ............................................................ 38

TABLE 15 GLOBAL NON ASSOCIATED GAS :VOLUME (MILLION TONS) AND REVENUE(USD BILLION) ........................... 39

TABLE 16 GLOBAL NON ASSOCIATED GAS MARKET BY REGION: VOLUME(MILLION TONS) ......................................... 40

TABLE 17 GLOBAL NON ASSOCIATED GAS MARKET REVENUE BY REGION, 2012 – 2020 (USD BILLION) ...................... 40

TABLE 18 GLOBAL LPG APPLICATION RESIDENTIAL/COMMERCIAL........................................................................ 42

TABLE 19 GLOBAL APPLICATION OF LPG IN RESIDENTIAL/COMMERCIAL :VOLUME (MILLION TONS) ........................... 43

TABLE 20 GLOBAL APPLICATION OF LPG IN RESIDENTIAL/COMMERCIAL MARKET BY REGION: REVENUE (USD BILLION) . 43

TABLE 21 GLOBAL APPLICATION OF LPG IN CHEMICAL: VOLUME(MILLION TONS),REVENUE (USD BILLION) ................ 44

TABLE 22 GLOBAL APPLICATION OF LPG IN CHEMICAL INDUSTRY BY REGION: VOLUME (MILLION TONS) ..................... 45

TABLE 23 GLOBAL LPG MARKET REVENUE FROM CHEMICAL BY REGION, (USD BILLION) ......................................... 46

TABLE 24 GLOBAL APPLICATION OF LPG IN INDUSTRIAL (MILLION TONS) (USD BILLION) ....................................... 46

TABLE 25 GLOBAL LPG MARKET BY REGION: VOLUME (MILLION TONS) ............................................................. 47

TABLE 26 GLOBAL APPLICATION OF LPG IN INDUSTRY: REVENUE BY REGION (USD BILLION) ..................................... 47

TABLE 27 GLOBAL APPLICATION FOR LPG IN AUTO FUEL: VOLUME(MILLION TONS) REVENUE(USD BILLION ............... 48

TABLE 28 GLOBAL APPLICATION OF LPG IN AUTO FUEL : VOLUME BY REGION (MILLION TONS) ................................. 49

TABLE 29 GLOBAL APPLICATION IN LPG IN AUTO FUEL : REVENUE BY REGION (USD BILLION) ................................... 49

TABLE 30 GLOBAL APPLICATION OF LPG IN REFINERY: VOLUME (MILLION TONS) REVENUE(USD BILLION) ................. 50

TABLE 31 GLOBAL APPLICATION OF LPG IN REFINERY : VOLUME BY REGION, (MILLION TONS) ................................... 51

TABLE 32 GLOBAL LPG MARKET REVENUE FOR REFINERY BY REGION, 2012 – 2020 (USD BILLION) ......................... 51

TABLE 33 GLOBAL APPLICATION OF LPG IN OTHERS INDUSTRY: VOLUME (MILLION TONS) REVENUE(USD BILLION) ... 52

TABLE 34 GLOBAL APPLICATION LPG IN OTHERS INDUSTRY : VOLUME BY REGION, (MILLION TONS) .......................... 53

TABLE 35 GLOBAL APPLICATION OF LPG IN OTHERS INDUSTRY: REVENUE BY REGION (USD BILLION) ........................ 53

TABLE 36 NORTH AMERICA LPG DEMAND: VOLUME (MILLION TONS), REVENUE, (USD BILLION) ............................ 55

TABLE 37 NORTH AMERICA LPG MARKET BY SOURCE: VOLUME (MILLION TONS) .................................................. 55

TABLE 38 NORTH AMERICA LPG MARKET REVENUE BY SOURCE, (USD BILLION) .................................................... 56

TABLE 39 NORTH AMERICA LPG APPLICATION: VOLUME (MILLION TONS) ............................................................ 56

TABLE 40 NORTH AMERICA LPG APPLICATION: REVENUE (USD BILLION) ............................................................. 57

TABLE 41 EUROPE LPG MARKET DEMAND: VOLUME (MILLION TONS) AND REVENUE, (USD BILLION) ........................ 58

TABLE 42 EUROPE LPG SOURCE: VOLUME (MILLION TONS) .............................................................................. 59

TABLE 43 EUROPE LPG BY SOURCE: REVENUE (USD BILLION) ........................................................................... 59

TABLE 44 EUROPE LPG VOLUME BY APPLICATION, (MILLION TONS) .................................................................... 59

TABLE 45 EUROPE LPG MARKET REVENUE BY APPLICATION, (USD BILLION) .......................................................... 60

TABLE 46 ASIA PACIFIC LPG MARKET DEMAND IN VOLUME (MILLION TONS) AND REVENUE, (USD BILLION) ............... 61

TABLE 47 ASIA PACIFIC LPG SOURCE: VOLUME (MILLION TONS) ........................................................................ 62

TABLE 48 ASIA PACIFIC LPG SOURCE :REVENUE (USD BILLION) .......................................................................... 62

TABLE 49 ASIA PACIFIC LPG VOLUME BY APPLICATION, (MILLION TONS) ............................................................. 62

TABLE 50 ASIA PACIFIC LPG APPLICATION: REVENUE (USD BILLION) .................................................................. 63

TABLE 51 MIDDLE EAST & AFRICA LPG MARKET DEMAND, VOLUME (MILLION TONS) AND REVENUE, (USD BILLION) . 64

TABLE 52 MIDDLE EAST & AFRICA LPG SOURCE: VOLUME (MILLION TONS) ......................................................... 66

TABLE 53 MIDDLE EAST & AFRICA LPG SOURCE: REVENUE (USD BILLION) ......................................................... 66

TABLE 54 MIDDLE EAST & AFRICA LPG APPLICATION : VOLUME (MILLION TONS), ................................................. 67

TABLE 55 MIDDLE EAST & AFRICA LPG APPLICATION :REVENUE (USD BILLION) .................................................... 67

TABLE 56 LATIN AMERICA LPG MARKET DEMAND, VOLUME (MILLION TONS) AND REVENUE, (USD BILLION) 2012 –

2020, 68



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TABLE 57 LATIN AMERICA LPG SOURCE : VOLUME (MILLION TONS) .................................................................... 69

TABLE 58 LATIN AMERICA LPG SOURCE : REVENUE (USD BILLION) .................................................................... 69

TABLE 59 LATIN AMERICA LPG APPLICATION: VOLUME (MILLION TONS) .............................................................. 70

TABLE 60 LATIN AMERICA LPG APPLICATION : REVENUE (USD BILLION) ............................................................... 70

List of Figures

FIG. 1 LPG MARKET SEGMENTATION ............................................................................................................. 21

FIG. 2 LPG MARKET-VALUE CHAIN ............................................................................................................... 22

FIG. 3 LPG MARKET-MARKET DYNAMICS ........................................................................................................ 23

FIG. 4 GLOBAL AUTO GAS VEHICLES, 2008-2012 (MILLION UNITS) ..................................................................... 26

FIG. 5 GLOBAL BLACK CARBON EMISSION, BY SECTOR ........................................................................................ 27

FIG. 6 HISTORICAL AND FORECAST VALUE(1970-2035) .................................................................................... 28

FIG. 7 LPG MARKET-PORTER’S ANALYSIS ....................................................................................................... 29

FIG. 8 LPG MARKET-COMPANY SHARE ANALYSIS ............................................................................................. 32

FIG. 9 LPG MARKET-PESTEL ANALYSIS ......................................................................................................... 33

FIG. 10 LPG MARKET VOLUME SHARE BY SOURCE, 2013 & 2020 ........................................................................ 34

FIG. 11 LPG MARKET VOLUME SHARE BY APPLICATION, 2013 & 2020 ................................................................ 41

FIG. 12 LPG CONSUMPTION IN PETROCHEMICAL PLANT ....................................................................................... 44

FIG. 13 LPG MARKET VOLUME SHARE BY REGION, 2013 & 2020 ........................................................................ 54

FIG. 14 LPG PRODUCTION FROM NON-ASSOCIATED GAS WELL .............................................................................. 64

FIG. 15 NATURAL GAS PRODUCTION ................................................................................................................ 65



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Chapter 1 Executive Summary The global market for LPG was 270.76 million tons in 2013 and is expected to reach

356.98 million tons by 2020, growing at a CAGR of 4.1% from 2014 to 2020. In terms of

revenue, the market was valued at USD 219.43 billion in 2013 and is expected to reach

USD 291.42 billion by 2020, growing at a CAGR of 4.2% from 2014 to 2020.

TABLE 1 Liquefied Petroleum Gas (LPG) – Industry Summary & Critical Success Factors

(CSFs)

Region 2013(Revenue) 2020(Revenue)

Revenue trend North

America 21.2% 19.6%

Europe 16.8% 15.2%

Asia pacific 35.6%

37.9%

Latin America

12%

12.2%

Industry

movement

Increasing demand for natural gas vehicles is expected to remain a key driving

factor for the overall market. In addition shift replacing coal and wood as a

domestic fuel towards is also expected to push the demand for LPG market

over the forecast period. However, Volatility in raw material prices is expected

to hinder market growth.

Opportunities Increasing demand from Asia pacific region

Use of LPG in fractional drilling of well

Natural gas vehicles witnessing Growth

Source: Society of Automotive Engineers, Oil & Gas Journal, ATC, Company Annual Reports, Primary Interviews, Grand View

Research

TABLE 2 Global Liquefied Petroleum Gas (LPG) Market: Volume, Revenue, 2012 – 2020

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAGR (2014-20)

Volume(million tons)

115.95 119.77

123.84

128.17

132.78

137.82

143.19 149.20 155.46 162.14 4.0%

Revenue(billion USD)

66.40 68.44 70.62 72.92 75.38 78.06 80.91 84.10 87.42 90.94 3.7%


Research

Liquefied petroleum gas is a hydrocarbon primarily consists of propane, butane, ethane

and pentane. It is produced in oil refinery and natural gas processing plant.

Growing government initiatives mainly in China, India, South Africa and Indonesia to

promote the application of LPG (liquefied petroleum gas) as a cooking fuel has been one



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of the major factors driving the global demand for LPG. Coal is a majorly used fuel used

for cooking in developing and underdeveloped countries owing to its availability and low

price. LPG is consider to be a clean cooking fuel when compared with coal and in order

to reduce harmful emission caused due ignition of coal, governments of various nations

including India are offering LPG cylinders at subsidized rates to the consumers. In

addition to increasing usage of LPG as a cooking fuel, LPG is also gaining popularity as

a transportation fuel. LPG as a transportation fuel offer low cost and environmental

friendly solution when compared with gasoline and diesel. With increase in oil and gas

demand, LPG production is also rising, making it available in surplus amount. In addition,

shale gas development especially in the U.S. and China is leading to oversupply of LPG

in the global market. LPG production is expected to increase majorly from processing of

non-associated conventional gas, while production from associated gas is expected to

grow at a comparatively slower rate.

LPG market expected to excel and possess a lot of key opportunity as use of LPG as

auto fuel is widely in use. The several factor driving the demand for natural gas powered

vehicle. The first and most is high cost of petroleum based fuels, such as petrol and

diesel. An individual can reduce their annual fuel costs by switching to natural gas. The

second factor promoting demand of NGVs is growing importance toward maintaining

national security and saving economy from global oil price risks. The third factor

promoting NGVs demand is that NGVs is environment friendly owing to natural gas is

clean burning gas than gasoline and HSD. Therefore vehicles using natural as their fuel

produce less nitrogen oxide, particulates and carbon dioxide per mile traveled.

TABLE 3 Global LPG source Market: Volume (Million Tons), 2012 - 2020

Source 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-20)

Refinery 115.95 119.77 123.84 128.17 132.78 137.82 143.19 149.20 155.46 162.14 4.0%

Associated Gas

66.40 68.44 70.62 72.92 75.38 78.06 80.91 84.10 87.42 90.94 3.7%

Non associated gas

72.65 75.45 78.44 81.63 85.03 88.74 92.70 97.12 101.76 106.71 4.6%

Total 255.00 263.67 272.90 282.72 293.18 304.62 316.80 330.42 344.63 359.80 4.1%


Research

Overall LPG market is segmented into various source namely refinery, associated gas,

and non-associated gas. Highest amount of LPG is obtained from the refineries. LPG



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produced from refineries accounts for 45.4% of total LPG production. LPG sourced from

associated gas is a relatively unexplored area. LPG sourced from non-associated gas is

expected to be the fastest growing market at an estimated CAGR of 4.6% from 2014 to

2020. Global production of LPG from refinery was 123.84 million tons in 2013 and is

expected to reach 162.14 million tons by 2020, growing at a CAGR of 4 % from 2014 to

2020. Refinery accounts for huge quantity of LPG production among all source owing to

increasing number refinery in Asia Pacific region such as China and India. Global LPG

production from Associated Gas was. 70.62 million tons in 2013 and is expected to reach

90.94 million tons by 2020, growing at a CAGR of 3.7% from 2014 to 2020. Associated

gas means crude oil is sticked with natural gas. Therefore extraction of LPG requires

another technology to separate them such as “LPG-Sep systems” which is very costly

and adds another cost to company owing to this production of LPG from associated gas

is less in relation to another source of LPG.

TABLE 4 Global LPG source market: Revenue (USD Billion)

Source 201

1 201

2 201

3 201

4 201

5 201

6 201

7 201

8 201

9 202

0 CAGR

(2014-20)

Refinery 95.18

95.85

99.51

103.13

106.89

111.04

115.47

120.51

125.78

131.41

4.1%

Associated Gas

54.62

54.36

56.25

58.16

60.13

62.31

64.62

67.23

69.94

72.82

3.8%

Non associated gas

62.35

62.68

65.40

68.14

71.01

74.16

77.53

81.30

85.26

89.50

4.7%

Total 212.15

212.88

221.17

229.42

238.03

247.50

257.62

269.04

280.98

293.72

4.2%


Research



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TABLE 5 Global LPG application market: Volume (Million Tons)

Application 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

Residential/Commercial

119.91

124.80

130.02

135.58

141.52

148.01

154.93

162.65

170.75

179.42

4.8%

Chemical 62.76 64.72 66.79 69.00 71.34 73.89 76.60 79.64 82.79 86.14 3.8%

Industrial 24.58 25.23 25.91 26.65 27.43 28.28 29.19 30.21 31.27 32.39 3.3%

Auto fuel 20.40 21.15 21.94 22.79 23.68 24.66 25.70 26.86 28.06 29.34 4.3%

Refinery 12.35 12.54 12.75 12.97 13.21 13.47 13.76 14.09 14.43 14.80 2.2%

Other 15.00 15.23 15.48 15.74 16.01 16.31 16.62 16.98 17.34 17.72 2.0%

Total 255.00

263.67

272.90

282.72

293.18

304.62

316.80

330.42

344.63

359.80

4.1%


Research

The key applications of LPG include residential/commercial, chemical, auto fuel, refinery

and other where there is a growing demand. Commercial/ Residential sector emerged as

the leading application segment and accounted for 47.6% of total market volume in 2013

and the same is expected to be the fastest growing application segment for LPG at an

estimated CAGR of 4.8% from 2014 to 2020. LPG has been experiencing rapid growth in

residential/commercial applications due to legislative regulations and subsidies offered

by the government. Global of application LPG in Residential/Commercial was 130.02

Million tons in 2013 and is expected to reach 179.42 Million tons by 2020, growing at a

CAGR of 4.8% from 2014 to 2020. Increasing LPG demand for domestic cooking and

heating is expected to drive its consumption over the forecast period. Along with being

the biggest segment, residential/commercial is also expected to be the fastest growing

application for LPG, followed by auto fuel application. Application of LPG in chemical

sector primarily dominated by demand from petrochemical plant as they use LPG as

their feed stock due to low cost and high calorific value. In 2012 according to EIA

Petrochemical plant use 21.57% of global LPG consumed. Application of LPG in different

industries such as iron and steel industry for metal cutting, forging, textile, paper,

annealing and Billet expected to be key driver for growth of consumption of LPG in

industrial sector.



Page 14

TABLE 6 Global LPG region market: Volume (Million Tons), 2012 – 2020

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-20)

North America 55.08 56.37 57.75 59.20 60.75 62.45 64.25 66.28 68.38 70.59 3.0%

Europe 44.12 45.01 45.96 46.96 48.02 49.20 50.43 51.84 53.28 54.80 2.6%

Asia Pacific 89.25 93.13 97.26 101.67 106.37 111.49 116.96 123.05 129.44 136.29 5.0%

Middle East

& Africa 36.08 37.57 39.16 40.85 42.66 44.63 46.73 49.07 51.52 54.15 4.8%

Latin America 30.47 31.59 32.78 34.04 35.39 36.86 38.43 40.18 42.01 43.97 4.4%

Total 255.00 263.67 272.90 282.72 293.18 304.62 316.80 330.42 344.63 359.80 4.1%


Research

TABLE 7 Global LPG region market :Revenue, (USD Billion), 2012 – 2020

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR

(2014-20)

North America

45.93 45.67 46.92 48.16 49.42 50.83 52.32 54.02 55.77 57.63 3.0%

Europe 36.35 35.33 36.33 37.23 38.08 39.02 40.05 41.19 42.36 43.59 2.7%

Asia Pacific

75.46 77.76 81.53 85.30 89.28 93.66 98.33 103.67

109.29

115.32

5.2%

Middle East & Africa

29.39 29.54 30.86 32.21 33.65 35.22 36.91 38.76 40.71 42.80 4.9%

Latin America

25.03 24.58 25.53 26.53 27.59 28.76 30.02 31.40 32.84 34.39 4.4%

Total 212.15 212.88

221.17

229.42

238.03

247.50

257.62

269.04

280.98

293.72

4.2%


Research

Asia Pacific was the largest consumer of LPG due to very large population in the region.

Asia Pacific accounted for 35.00% of total market volume in 2013. In addition, Asia

Pacific is expected to be the fastest growing regional market for LPG at an estimated

CAGR of 5.0% from 2014 to 2020. China has the highest population in the world and is

also the largest consumer of LPG. The North America market was valued at USD 46.92

billion in 2013 and is expected to reach USD 57.63 billion by 2020, growing at a CAGR



Page 15

of 3.0% from 2014 to 2020. Production of LPG in the US has been growing owing to

evolution of shale gas coupled with development in domestic natural gas resource base.

It is estimated by EIA that US has largest reserve of Shale gas and first time in 40 year.

The USA becomes net exporter of LPG. Therefore in the first 11 months of 2012, the

daily LPG shipments were 194,000 barrels in comparison to imports which stood at

169,700 barrels. In addition the US has largest number of refinery which is a big source

of propane. . Among all regional market Europe has least consumption of LPG in 2013

and expected to show slowest CAGR growth rate in 2020. However, Implementation of

stringent environmental regulation coupled with aim of European counties to deduce

pollution level up to 20% till 2020 expected to increase the demand of LPG. Additionally

in order to excel the LPG based vehicle in Europe many European cities such as Milan,

London provide exemption from congestion charges. In terms of revenue, the market

was valued at USD 30.86 billion in 2013 and is expected to reach USD 42.80billion by

2020, growing at a CAGR of 4.9% from 2014 to 2020. In Middle East and Africa LPG

production primarily comes from non-associated gas key counties such as Qatar and

UAE has largest reserve of natural gas. The Middle East is a key source of LPG and

produces ~54 MTPA in 2013



Page 16

Chapter 2 Scope And Research Methodology My entire report is based on secondary research which comprises extensive data mining,

referring to verified data sources such as independent studies, government and

regulatory published material, technical journals, oil and gas magazines paid data

sources such as IHS and so on.

2.1 Research objective

2.1.1 Primary

To estimate and forecast expected market size and growth trends for 2014 to

2020

To know companies which were leaders in 2012 and their respective strategic

initiatives taken by them.

To understand and estimates opportunities available to LPG companies and

other contender in this space.

To know the barriers and opportunities in the LPG market

To know top performing source segment in 2013 and forecast performance of

these segment in 2020.

To know top performing application segment in 2013 and forecast performance

of these segment in 2020

To know top-performing regional markets in 2013 and forecast performance of

different region in 2020.

2.1.2 Secondary objectives:

Gain professional experience

To learn skills such as: Analytical skill, Formatting, Data interpretation etc.



Page 17

2.2 Research Scope & Assumptions

The report provides market volume and revenue for base year 2013 and a yearly

forecast to 2020 in terms of volume (Million Tons) and revenue (USD billion). Market for

each application has been provided on a regional basis for the above mentioned forecast

period.

Key industry dynamics, regulatory scenario, major technological trends and application

markets are evaluated to understand their impact on demand for the forecast period.

Growth rates are estimated using correlation, regression and time-series analysis.

We have used a bottom-up approach for market sizing, analyzing key regional markets,

dynamics and trends for various applications. Global market is estimated by integrating

regional markets.

All market estimates and industry analysis is then validated through exhaustive primary

research with key industry participants and consumers.

2.3 List of Data Sources

List of secondary sources include but are not limited to:

Oil and Gas Journal

ICIS

World LP Gas Association

Platts

U.S. Energy Information Administration

U.S. Department of Energy (DOE)x

2.4 Literature Review

There is adequate literature available in relating to the report. Extensive usage has been

made of all the available literature for the information. The books on oil and gas

understanding published by UPES, Energy hedging in Asia by PETER C. FUSARO and

others provide me great help in understanding the concept of petroleum extraction

methodology and forecasting of pricing. In addition to this various report published by

EIA, Argus, ICF International and OPIS Europe has been extensively used. For further

understanding of the concept many research papers both international as well as

national will be studied. These research papers are very helpful as they bring the clarity

about the topics. They help in showing the correct direction for the project work and how



Page 18

one shall proceed with it. Over the study of different research papers, it has been found

that every paper has different aspect to work out, as the papers are written on problems

faced by importers, refiners, producers due to price volatility.

2.4.1 LPG Industry Road Map

Date- 2009

Published by the AEGPL

This report primarily focus on European energy mix in which LPG’s advantages play an

increasingly significant role. In addition, this report identifies impact of LPG on

environment and health of human being, contribution of LPG in social and economic

development of Europe, area of high growth for LPG and lastly it discuss some of the

concrete measure to ensures that LPG potential turn into reality

2.4.2 World LPG Market Outlook

Published by: IHS (Purvin & Gertz)

This report provides an in-depth analysis of the world and regional LPG markets,

detailed market analysis and cover more than 50 major country markets, detailed

analysis of Profitability relating to various segments of the LPG industry which is

compared on regional basis considering few key countries. The report studies and

forecast LPG supply by source and location, LPG by end-use application, global/regional

trade and LPG pricing. The outlook for future international LPG supplies is developed

both on a source (natural gas, refineries) and a regional basis.

2 . 4 . 2 . 1 F i n d i n g

Demand of LPG in south East Asia has grown than LPG supplies in the region.

The outlook for future international LPG supplies is developed both on a source

(natural gas, refineries) and a regional basis.

2.4.3 Oil in charge

Author- ABE COFNAS

This research paper is about effect of price volatility in oil exporting and

importing countries.

Effect of price volatility on developing and developed countries.

Analysis of “Impact of high oil price on the global economy ‘in May 2004



Page 19

2 . 4 . 3 . 1 F i n d i n g

Economy of developing countries like Asia, Africa is affected because their

economy depend more on imported oil.

Oil importing countries uses more than twice petroleum product to produce

one unit of output than developed countries.

US economy less effected by price hike because one and another way there

dollar return to them.

The elements of energy markets likely to impact future price volatility, and

forecast expected energy price volatility between today and 2020 is discussed

2.4.4 Natural gas: Analysis of change in market price

Author –GAO

Date – Dec 2002

No .of page- 97

Why did GAO do this survey?

During the winter of 2000-2001, the wholesale price of natural gas peaked at a level four

times greater than its usual level.

Responding to the congressional interest and concern caused by these high prices,

2 . 4 . 4 . 1 G A O u n d e r t o o k a s t u d y t o

Factors that influence natural gas price volatility and the high prices of 2000-

2001;

Federal government’s role in ensuring that natural gas prices are determined in a

competitive, informed market place

Choices available to gas utility companies that want to mitigate the effects of

price spikes on their residential customers.

2 . 4 . 4 . 2 F i n d i n g

Price spikes occur periodically in natural gas markets because supplies cannot

quickly adjust to demand changes.

While market forces make natural gas prices susceptible to price volatility,

investigations are underway to determine if natural gas prices were manipulated

in the Western United States during the winter of 2000-2001.



Page 20

2.4.5 Oil price volatility and U.S macroeconomic activity

Author- Hui GUA and Kevin L. Kliesen

Place- St. Lousis

No of pages-16

This research paper distinguishes two most important channel through which change in

oil price affect aggregate economic activities.

I. The change in the dollar price of crude oil

II. The uncertain future price.

2 . 4 . 5 . 1 R e s u l t :

Oil price volatility has negative and significant effect on future GDP growth.

This volatility effect becomes more significant after we control oil price change.

Both the oil price change and its volatility lose their significance after we control

nonlinear oil shock measure

2.5 Limitation

1. Data is collected from secondary sources so there are chances of error.

2. The strategies have to be implemented in real market conditions to find out their

efficacy.

3. Availability of time and budget constraints.

4. Technical analysis is used to forecast LPG prices but sometimes it may not yield

effective results.



Page 21

Chapter 3 LPG: Industry Analysis

3.1 Market Segmentation

FIG. 1 LPG market segmentation

Source: ICIS, Oil & Gas Journal, WLPGA, Platts, U.S. EIA, Company Annual Reports, Primary Interviews, GVR

I estimated the LPG industry by segmenting the market on three levels, which include

source, application and regional markets. LPG source have been broadly classified under

three main categories, namely, refinery, associated gas and non-associated gas. Various

application segments of LPG defined in this report include residential and commercial,

chemical, industrial, auto fuel, refinery and others. North America LPG market includes

the U.S., Canada and Mexico. Asia Pacific LPG market includes Japan, China, India,

Taiwan, Korea and Australia. European LPG includes Western European countries and

Eastern European countries including CIS countries. RoW gas sensors market includes

South America, Middle East and Africa.

Auto fuel

Market Segmentation

Source Region

Application

Non Associated

Refinery

Associated

Asia PacificEuropeNorth America

Chemical

Others

Industrial

Middle east & AfricaLatin America

Refinery

Residential/Commercial



Page 22

3.2 Value Chain

FIG. 2 LPG Market-Value Chain


Liquefied petroleum gas is a hydrocarbon primarily consists of propane, butane, ethane

and pentane. It is produced in oil refinery and natural gas processing plant. In oil refinery,

LPG produced as byproduct of the refining process for other fuels. The petrochemical

plant uses various techniques to separate LPG gas from natural gas namely cooling and

refrigeration of gases, cryogenic processing and absorption and combination of these

methods can be considered. However market price of LPG, plant capacity, quality and

quantity of gas coupled with operation cost determine the separation process. Owing to

its high calorific value, it is significantly used in household, commercial, agricultural,

industrial and manufacturing application. LPG can also be used for lighting, powering

vehicles and cogeneration. In addition LPG primarily used in petrochemical industry as a

feedstock for manufacturing various petrochemical product such as PVC, paint , plastics,

adhesive, films and many others. LPG industry is a very capital intensive nature and

ExxonMobil

Raw material

suppliersManufacturer LPG terminal Bottling Plant

Application

sector

Shell Brunei LNG Indian oil BP Petroleum

Direct Supply

• Refinery

• Natural gas

Processing Plant

• Associated

gas

• Non

associated gas

• Crude oil

• LPG Filling • Residential

• Commercial

• Chemical

• Industrial

• Auto Fuel

• Refinery

Distribution network

• City gas

distributor

• Auto gas

Station

• Retailer

• Cylinder

distribution

• Reseller

• Gas Heating

• Gas Blending

System

• Storage terminal

Forward Integration by company such as ExxonMobil, Shell and BP

Captive Utilization by refinery

and petrochemical plant

Mercedez

Benz



Page 23

majorly dominated by big players such as ExxonMobil, Chevron, BP, Indian Oil

Corporation and shell. These are some companies present across the value chain as

well as uses LPG for their captive consumption.

Transportation of LPG is broadly classified into two segment namely upstream

transportation and downstream transportation. Upstream transportation includes

transportation of LPG from refinery to filling center or storage center. The downstream

transportation comprises transportation of LPG from storage center to bottling center.

The selection of mode of transportation depends on quantity, time and connectivity mode

available. Usually train, ships, trucks and pipeline are use as mode of transportation.

Companies such as Indian Oil, Shell are available at all level of transportation.

3.3 Liquefied Petroleum Gas (LPG) – Market Dynamics

FIG. 3 LPG market-Market dynamics


Technology Trends

Cracking crude oil to produce LPG

is major technology used globally.

LPG-Sep systems used to recover

LPG from associated gas

Demand of LPG expected to

increase owing to introduction of

LPG fracturing technology in Shale

gas Drilling technology

Raw Material trends

Crude oil is a commodity which is

considered to have highly volatile

price. Volatility does not always

means increase in price, it can be

both sudden increase and decrease

in prices. More than 40% of LPG

production is from refineries,

resulting in high dependence on

crude oil

Regulatory Trends

In India, Motor Vehicle Act

(Amendment), 2000 legislated the

use of environment-friendly fuel like

Compressed Natural Gas (CNG)

and Liquefied Petroleum Gas (LPG)

as auto-fuels.

In 2014, European Union introduce

Euro 6 standard for all new vehicle.

Customer Trends

LPG

Market

Increase in price of petrol and

diesel create demand for based

propane vehicles by commercial

vehicle fleet operators.

In addition financial incentives and

favorable government regulation

fuel the demand of LPG globally.



Page 24

Growing government initiatives mainly in China, India, South Africa and Indonesia to

promote the application of LPG (liquefied petroleum gas) as a cooking fuel has been one

of the major factors driving the global demand for LPG. Coal is a majorly used fuel used

for cooking in developing and underdeveloped countries owing to its availability and low

price.

However, LPG is consider to be a clean cooking fuel when compared with coal and in

order to reduce harmful emission caused due ignition of coal, governments of various

nations including India are offering LPG cylinders at subsidized rates to the consumers.

In addition to increasing usage of LPG as a cooking fuel, LPG is also gaining popularity

as a transportation fuel. LPG as a transportation fuel offer low cost and environmental

friendly solution when compared with gasoline and diesel. With increase in oil and gas

demand, LPG production is also rising, making it available in surplus amount. In addition,

shale gas development especially in the U.S. and China is leading to oversupply of LPG

in the global market. LPG production is expected to increase majorly from processing of

non-associated conventional gas, while production from associated gas is expected to

grow at a comparatively slower rate.

The Middle East, North America, and Northern Africa are the major LPG producers with

a large number of crude oil refineries and natural gas processing plants. LPG has been

replacing a number of fuels in different applications due to its environmental and

operational benefits. It is used as a refrigerant instead of chlorofluorocarbon and hydro

fluorocarbon, as it has negligible ozone depletion potential. It is also used instead of

gasoline and diesel as an automobile fuel owing to rising prices of conventional fuel.

LPG used in automobiles is popularly known as auto gas (automobile liquefied petroleum

gas). However, major application of LPG around the globe is in domestic and

commercial space heating and cooking.

3.4 Market driver analysis

TABLE 8 Liquefied Petroleum Gas (LPG) – Key market driver impact

Market drivers

2014-16 2016-18 2018-20

Effect

Increasing demand for natural gas vehicles (NGV) Medium High High

Shift towards replacing coal and wood as a

domestic fuel Medium Medium High

Source: IHS, Oil & Gas Journal, EIA, Reach, Company Annual Reports, Primary Interviews, Grand View Research



Page 25

3.4.1 Increasing demand for natural gas vehicles (NGV)

Use of natural gas in transportation sector is still in its early stage. However, natural gas

powered vehicle possess huge opportunity. The several factor driving the demand for

natural gas powered vehicle. The first and most is high cost of petroleum based fuels,

such as petrol and diesel. An individual can reduce their annual fuel costs by switching to

natural gas. The second factor promoting demand of NGVs is growing importance

toward maintaining national security and saving economy from global oil price risks. The

third factor promoting NGVs demand is that NGVs is environment friendly owing to

natural gas is clean burning gas than gasoline and HSD. Therefore vehicles using

natural as their fuel produce less nitrogen oxide, particulates, and carbon dioxide per

mile traveled.

Automotive liquefied petroleum gas, also known as autogas, is used as fuel in

automobiles in many regions worldwide. Autogas has high energy content and burns

easily compared to other energy sources or fuels. Consumption of autogas has been

rapidly increasing from the last few years, majorly due to its environmental benefits.

National governments have been promoting use of autogas through various initiatives. In

the U.S. fuelling equipments (for LPG, electricity, E85 or diesel fuel blended with

biodiesel) installed between 1st January of 2006 to 31st December, 2013 is eligible for

30% tax credits. Similarly government of few other countries such as Algeria, Australia

and other have been pushing the local public to use autogas vehicles. In addition, focus

on autogas is increasing due to its functional and cost benefits over oil based fuels such

as gasoline or diesel. The operational and performance characteristics of autogas

vehicles are favorable as compared to other fuels. Autogas provides various operational

benefits such as low maintenance, less soot formation, and reduced frequency of

changing the spark plug and oil. Compared to other fuels such as gasoline and diesel,

autogas and CNG are greener fuels, out of which autogas is preferred due to its storage

benefits, availability, and low cost



Page 26

FIG. 4 Global auto gas vehicles, 2008-2012 (million units)

SOURCE: UN STATISTICS DIVISION, BOND ET, 2007

Autogas vehicles cover 90% of the gasoline vehicles while CNG vehicles cover only 40%

to 50% of the gasoline vehicle range. Compared to gasoline, autogas and CNG reduce

carbon emissions by 20%, but autogas vehicles do it in a more cost efficient way.

On account of the benefits of autogas, various government initiatives and increase in the

number of autogas vehicles, autogas consumption has been growing each year.

Countries having the highest number of autogas vehicles are Turkey, Poland, and Korea.

Global number of autogas vehicles has been increasing significantly every year, primarily

due to introduction of vehicle models running on natural gas by major automobile players

in the market

3.4.2 Shift towards replacing coal and wood as a domestic fuel

Black carbon is one of the major contributors to climate change and cause pollution to

environment. According to estimate of United nation, 2004 approximately 26% of global

co2 are attributed from residential sector.

0.00

5.00

10.00

15.00

20.00

25.00

2008 2009 2010 2011 2012

Au

to g

as

ve

hic

les

(M

illi

on

u

nit

s)

Year



Page 27

FIG. 5 Global black carbon emission, by sector

SOURCE: UN STATISTICS DIVISION, BOND ET, 2007

Developing countries such as India, Pakistan, China and Brazil are more responsible for

carbon emission owing to inefficient combustion fuel for domestic purpose such as

cooking and heating. Among all coal and wood use together account for two- thirds of

residential carbon emission and rest from burning animal waste, diesel fuel and

agriculture residues. Combustion of coal add significant amount of carbon dioxide in

environment. For example, every ton of coal burned produces approximately 2.5 tons of

carbon dioxide which is highest among all different fossil fuels. In addition coal account

for one third of fossil fuels. Therefore coal account 43% of carbon dioxide emission from

fossil fuel. British petroleum estimate that coal use increased 5.5 percent over the

year and it is increasing at rate of 1.7. So if same rate of use will continue then world

coal reserve will end in 2048. But LPG production is increasing at an average annual

rate of 2.2%. This guarantees that there is no risk of demand surpassing supply in the

foreseeable future. So, there is need to develop new alternative source of energy to

cater growing energy demand.



Page 28

3.5 Market restraint analysis

Market Drivers

2014-16 2016-18 2018-20

Effect

Volatility in raw material prices High High High


3.5.1 Volatility in raw material prices

Crude oil, associated and non-associated gas are primary source of LPG. Thus changes

in their prices have direct impact on price of price of LPG globally. The historical trend

vividly shows that crude oil price is high volatile. The two oil price shocks in the 1970s

and 1980s demonstrated period of high volatility. Recently, Oil market gets turmoil and

recorded high degree of price volatility in crude.

FIG. 6 Historical and forecast value(1970-2035)

Source: EIA



Page 29

During 2010 and 2011 world oil market experience significantly volatility in crude oil

owing to unrest in Middle East, Military Upheavals in Libya and Egypt coupled with

boycott of Iranian Crude oil as reply to nuclear weapons program. However, it is

expected that volatility of crude oil price will be stagnate over the forecasted period due

to enormous production from politically stable countries such as the United States and

Canada.

3.1 Industry Analysis – Porter’s

FIG. 7 LPG Market-Porter’s Analysis


Threat of new entrants 03

LPG market is considered to be

capital intensive in nature resulting to

high barrier to entry of new players

owing to long gestation period. In

addition to this LPG market

dominated by big multinational

company present across value chain.

Therefore market penetration will

key challenge for new players.

Supplier Power 04

There are a number of oil and gas

multinational corporation such as

Shell and BP that engaged in entire

value chain. Therefore , the impact

of supplier power is minimal . In

addition, for natural gas processing

plants , the supplier power has least

impact on account of their forward

integration process

Buyers power 05

LPG market possess large of

buyers such as Exxon, BP, Shell etc.

This company are available through

out the value chain therefore they

can use LPG for there captive

consumption in refinery and their

petrochemical plants.

Threat of substitutes 06

Industry rivalry 06

Global LPG market is highly

fragmented market, with top four

company account for less than 20%

of total global market share. In

addition ,merger and acquisition are

key strategies adopted to gain

competitive advantages

Biomass, solar energy can be used

as substitute for LPG owing to low

investment and political reason,

such government benefit and tax

holidays. However, Bio based Diesel

from jatropha, jojoba, simarouba,

mahua, hold significant potensial for

sustitution over the forecasted period



Page 30

3.1.1 Bargaining power of suppliers

There are a number of oil and gas multinational corporations such as Shell, BP, etc. that

are engaged in extraction of crude oil, refining, and hence also in LPG production. These

companies have forward integrated their process and are present across the value

chain, crude oil extraction, refining, LPG manufacturing, filling and storage and all levels

of distribution. Hence, the impact of supplier power is considered negligible for them. In

addition, for natural gas processing plants, the supplier power has least impact on

account of their forward integrated process. On the other hand, some of the refineries

that are dependent on other companies for crude oil supply are affected by volatility in

crude oil prices. As a result of the existing high number of oil and gas reserves, oil

refineries, and natural gas plants, supply of LPG has been available at surplus in the

market. In addition, increasing investments in shale gas resources and offshore oil and

gas resources especially in the U.S. promises abundant supply of LPG in the near future.

Hence, the bargaining power of suppliers is expected to be medium throughout the

forecast period of the next five years.

3.1.2 Bargaining power of buyers

The market includes large number of suppliers including oil and gas companies, natural

gas wells and refineries, leading to surplus amount of LPG. Supply demand gap of LPG

has been affecting its prices globally. Large number of buyers including residential,

commercial, industrial, agriculture and automobiles are present in the market. Other

buyers such as resellers and third-party service stations pose negligible threat of

backward integration, as it is a capital intensive industry.. Third-party service stations

and resellers form long term agreements with suppliers, which lowers the risk for both

buyers and suppliers. Due to increasing awareness of LPG in rural areas, its

environmental benefits and low cost, its demand is expected to grow especially in

developing nations.

Hence, the bargaining power of buyers is expected to be medium throughout the

forecast period.

3.1.3 Threat of substitutes

Use of LPG as cooking, heating, and automobile fuel has been supported by

governments in countries such as South Africa, India, Australia, etc. These governments

are supporting LPG against other fuels such as coal, diesel, petrol and electricity, due to



Page 31

its environmental and cost benefits. On account of few operational drawbacks and

transport issues, the shift from other fuels to LPG is expected to be slow. On the other

hand, demand for fuels such as Compressed Natural Gas (CNG) is expected to increase

in the future, which may act as a credible threat to LPG.

Hence, the threat of substitutes is expected to go from low to medium over the forecast

period of the next five years.

3.1.4 Threat of new entrants

LPG is produced at crude oil refineries and natural gas wells, which are capital intensive

and require achieving economies of scale to operate in the market. The market is

dominated by top oil & gas multinational companies such as Shell, BO, ExxonMobil, etc.

which are present across the value chain. These companies have been operating in the

market from a very long time and hence capture major market share, raising the entry

barrier for new participants. In addition, the industry has a high degree of regulatory

intervention and is highly impacted by geopolitical issues, creating uncertainty risks for

new entrants in the market.

Thus, the threat of new entrants is expected to go from low to medium over the forecast

period of next five years.

3.1.5 Degree of competition

The global LPG market is highly capital intensive and is dominated by few large

multinational oil & gas companies the top four companies accounted for 18.5% share of

the global market in 2012. Increasing investment in shale gas resources and other

unconventional gases especially in the U.S. and Canada is increasing, which is further

expected to add significant amount of LPG in global supply. Constant fluctuations in

crude oil prices affect the prices of LPG, specifically for refineries, as raw material

constitutes the bulk of the product cost. The key players are constantly striving to

increase their profit margins by minimizing their utility costs by achieving economies of

scale. Major companies such as Shell, ExxonMobil, British Petroleum, etc. are present

across value chain, starting from crude oil extraction to different level of distribution to

the buyers.

Thus, the degree of competition is considered to be high and is expected to remain the

same till the next five years.



Page 32

3.2 Company market share analysis

FIG. 8 LPG Market-Company share analysis

Global LPG market is fragment market because no company has majority market share

and they account less than 20% of global market share. Although Exxonmobil is the

world’s largest LPG provider, which accounted for 6% share of the global LPG market in

2013. In addition Sinopec, Shell and BP all account for 4% of total market share each .

All above company invest huge amount to gain more and more market share. In addition

they also focuses on extensive R&D and new product development. Some other key

players of market includes Chevron Crop, Phillips 66, CNPC, Valero Energy, Petroleos

de Venezuela.

6% 4%

4%

4%

3%

3%

3%

3%

3%

67%

Exxon Mobil Royal Dutch Shell Sinopec

BP PLC Valero Energy Petroleos de Venezuela

CNPC Chevron Corp Phillips 66

Others



Page 33

3.1 LPG Industry – PESTEL Analysis

FIG. 9 LPG Market-PESTEL Analysis

Political

Government across world

promoting the use of alternative

fuel such as CNG and Auto

gas(LPG)

Unrest in Middle East hamper the

production of LPG and other

petroleum product

Environmental

Carbon dioxide emission levelsare reduced by up to 40 percentover those of gasoline-fueledvehicles.

LPG vehicles contribute towardsthe EU carbon reduction targets

Social

• Development in LPG market

provides quick energy

solutions for rural areas

• European Conference for

Renewable Energy in 2004 set

target of obtaining 20% of its

total energy demand from

renewable sources of energy

by the year 2020. owing to

being conventional source of

energy LPG can make a

significant contribution to

achieving target

Technological

Demand for combined heat and

power technologies generating

both electrical power and useful

heat from LPG expected to

continue over forecasted period

LPG-Sep systems used to

recover LPG from associated gas

Legal

In 2014, European Union

introduce Euro 6 standard for all

new vehicle.

European commission revise the

excise duty and minimum to

€500 per ton of Auto gas in order

to decarbonize energy use in

Europe

Economic

LPG is cheaper than gasoline

and diesel and save up to 50%

compared with petrol and over

20% compared with diesel on fuel

cost. In addition number of

countries such as the U.S.A and

India impose less road taxLPG

Market



Page 34

Chapter 4 LPG :Data Analysis by Source

4.1 LPG market volume share by source, 2013 & 2020


and non-associated gas. Highest amount of LPG is obtained from the refineries. LPG

produced from refineries accounts for 45.4% of total LPG production. LPG sourced from

associated gas is a relatively unexplored area. LPG sourced from non-associated gas is

expected to be the fastest growing market at an estimated CAGR of 4.6% from 2014 to

2020

FIG. 10 LPG market volume share by source, 2013 & 2020


Production of LPG from non-associated gas is less than other because numbers of non-

associated gas well are less drilled. This is so because associated well produce crude oil

and natural gas both in same drilling cost. However, non-associated well produce only

natural gas. So drilling wet well is relative more profitable to company than dry well.

Refinery AssociatedGas

Nonassociated

gas

-

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40.00

60.00

80.00

100.00

120.00

140.00

Refinery AssociatedGas

Nonassociated

gas

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100.00

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160.00

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Page 35

4.2 Refinery

4.2.1 Global refinery market volume and revenue, 2012-2020

TABLE 9 Global refinery market: Volume(Million Tons) Revenue(USD Billion)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAGR(2014-20)

Volume(million tons)

115.95 119.77 123.84 128.17 132.78 137.82 143.19 149.20 155.46 162.14 4.0

%

Revenue(billion USD)

95.18 95.85 99.51 103.13 106.89 111.04 115.47 120.51 125.78 131.41 4.1

%


Global production of LPG from refinery was 123.84 million tons in 2013 and is expected

to reach 162.14 million tons by 2020, growing at a CAGR of 4 % from 2014 to 2020.

Refinery accounts for huge quantity of LPG production among all source owing to

increasing number refinery in Asia Pacific region such as China and India. As

environment regulation in this countries are not stringent. In addition Government

provides various type of incentive and tax holiday for new private players to establish

refinery. In other hand evolution of gas boost the refinery as major source of LPG

because to produce LPG from shale gas it is important that shale gas process in refinery.

Thus, refinery account as major source of LPG globally.

In terms of revenue, the market was valued at USD 99.51USD billion in 2013 and is

expected to reach USD 131.41USD billion by 2020, growing at a CAGR of 4.1% from

2014 to 2020.



Page 36

4.2.2 Global refinery market volume and revenue by region, 2012 -2020

TABLE 10 Global refinery market by region: Volume (Million Tons)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

15.97 16.26 16.57 16.90 17.25 17.64 18.05 18.53 19.01 19.52 2.4%

Europe 22.06 22.45 22.87 23.31 23.78 24.30 24.85 25.49 26.13 26.81 2.4%

Asia Pacific 64.26 66.96 69.83 72.90 76.16 79.72 83.51 87.73 92.16 96.90 4.9%

Middle East 3.61 3.72 3.83 3.95 4.08 4.22 4.36 4.53 4.70 4.88 3.6%

Latin America 10.06 10.39 10.74 11.11 11.51 11.94 12.40 12.92 13.46 14.03 4.0%

Total 115.9

5 119.7

7 123.8

4 128.1

7 132.7

8 137.8

2 143.1

9 149.2

0 155.4

6 162.1

4 4.0%


TABLE 11 Global refinery market by region : Revenue(USD Billion)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

14.24 14.09 14.40 14.71 15.02 15.38 15.75 16.18 16.62 17.09 2.5%

Europe 16.72 16.20 16.62 16.98 17.32 17.70 18.11 18.57 19.04 19.54 2.4%

Asia Pacific

52.82 54.36 56.91 59.45 62.14 65.10 68.24 71.84 75.63 79.68 5.0%

Middle East

2.65 2.63 2.71 2.79 2.88 2.98 3.08 3.19 3.31 3.43 3.5%

Latin America

8.76 8.57 8.87 9.19 9.52 9.90 10.29 10.73 11.18 11.66 4.1%

Total

95.18 95.85 99.51 103.13 106.89 111.04 115.47 120.51 125.78 131.41 4.1%




Page 37

4.3 Associated Gas

4.3.1 Global associated gas market volume and revenue, 2012-2020

TABLE 12 Global associated gas : Volume (Million tons) and revenue(USD Billion)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAGR (2014-

20)

Volume (Million Tons)

66.40 68.44 70.62 72.92 75.38 78.06 80.91 84.10 87.42 90.94 3.7%

Revenue (USD

billion) 54.62 54.36 56.25 58.16 60.13 62.31 64.62 67.23 69.94 72.82 3.8%


Global LPG production from Associated Gas was. 70.62 million tons in 2013 and is

expected to reach 90.94 million tons by 2020, growing at a CAGR of 3.7% from 2014 to

2020. Associated gas means crude oil is sticked with natural gas. Therefore extraction of

LPG requires another technology to separate them such as “LPG-Sep systems” which is

very costly and adds another cost to company owing to this production of LPG from

associated gas is less in relation to another source of LPG.

In terms of revenue, the market was valued at USD 56.25 billion in 2013 and is expected

to reach USD 56.25 billion by 2020, growing at a CAGR of 56.25from 2014 to 2020.



Page 38

4.3.2 Global associated gas market volume and revenue by region,

2012-2020

TABLE 13 Global associated gas by region :Volume, (Million Tons)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

31.95 32.78 33.65 34.59 35.57 36.66 37.80 39.09 40.42 41.83 3.2%

Europe 7.94 8.12 8.31 8.51 8.72 8.95 9.20 9.48 9.76 10.06 2.8%

Asia Pacific

6.25 6.47 6.71 6.96 7.23 7.53 7.84 8.18 8.54 8.93 4.2%

Middle East

6.86 7.16 7.49 7.84 8.21 8.61 9.05 9.53 10.04 10.58 5.1%

Latin America

13.41 13.91 14.45 15.03 15.64 16.31 17.02 17.82 18.65 19.54 4.5%

Total 66.40 68.44 70.62 72.92 75.38 78.06 80.91 84.10 87.42 90.94 3.7%


TABLE 14 Global associated gas by region : Revenue (USD Billion)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

25.26 25.18 25.94 26.69 27.46 28.31 29.21 30.24 31.30 32.42 3.3%

Europe 7.27 7.07 7.28 7.47 7.65 7.84 8.06 8.30 8.54 8.80 2.8%

Asia Pacific

6.04 6.20 6.47 6.75 7.04 7.35 7.69 8.08 8.48 8.91 4.8%

Middle East

5.29 5.32 5.56 5.81 6.07 6.36 6.67 7.00 7.36 7.74 4.9%

Latin America

10.76 10.58 11.00 11.45 11.92 12.44 13.00 13.61 14.25 14.94 4.5%

Total 54.62 54.36 56.25 58.16 60.13 62.31 64.62 67.23 69.94 72.82 3.8%




Page 39

4.4 Non associated gas

4.4.1 Global non associated gas market volume and revenue, 2012-2020

TABLE 15 Global non associated gas :Volume (Million Tons) and revenue(USD Billion)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)


72.65 75.45 78.44 81.63 85.03 88.74 92.70 97.12 101.76 106.71 4.6%

Revenue (USD

billion) 62.35 62.68 65.40 68.14 71.01 74.16 77.53 81.30 85.26 89.50 4.7%


Global production of LPG from non-associated gas was 78.44 million tons in 2013 and is

expected to reach 106.71 million tons by 2020, growing at a CAGR of 4.6 % from 2014

to 2020.

In terms of revenue, the market was valued at USD. 65.40 billion in 2013 and is

expected to reach USD 89.50 billion by 2020, growing at a CAGR of 4.7 % from 2014 to

2020.



Page 40

4.4.2 Global Non associated gas market volume and revenue by region,

2012-2020

TABLE 16 Global Non associated gas market by region: volume(Million Tons)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

7.16 7.33 7.52 7.71 7.92 8.15 8.39 8.66 8.94 9.24 3.1%

Europe 14.12 14.44 14.78 15.14 15.52 15.94 16.38 16.88 17.39 17.93 2.9%

Asia Pacific

18.74 19.70 20.72 21.81 22.98 24.25 25.61 27.13 28.74 30.46 5.7%

Middle East

25.62 26.70 27.84 29.07 30.37 31.80 33.32 35.01 36.79 38.69 4.9%

Latin America

7.01 7.29 7.58 7.90 8.24 8.61 9.00 9.44 9.90 10.39 4.7%

Total 72.65 75.45 78.44 81.63 85.03 88.74 92.70 97.12 101.76 106.71 4.6%


TABLE 17 Global Non associated gas market revenue by region, 2012 – 2020 (USD Billion)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

6.43 6.40 6.58 6.76 6.94 7.14 7.36 7.60 7.85 8.12 3.1%

Europe 12.36 12.05 12.43 12.78 13.12 13.48 13.88 14.32 14.77 15.25 3.0%

Asia Pacific

16.60 17.21 18.15 19.10 20.11 21.21 22.40 23.75 25.18 26.72 5.8%

Middle East

21.46 21.60 22.59 23.61 24.70 25.89 27.16 28.57 30.05 31.63 5.0%

Latin America

5.51 5.43 5.65 5.89 6.15 6.43 6.73 7.06 7.41 7.78 4.7%

Total 62.35 62.68 65.40 68.14 71.01 74.16 77.53 81.30 85.26 89.50 4.7%




Page 41

Chapter 5 LPG : Data Analysis By Application

5.1 LPG market volume share by application, 2013 & 2020


and other where there is a growing demand. Commercial/ Residential sector emerged as

the leading application segment and accounted for 47.6% of total market volume in 2013

and the same is expected to be the fastest growing application segment for LPG at an

estimated CAGR of 4.8% from 2014 to 2020.

FIG. 11 LPG market volume share by application, 2013 & 2020


LPG has been experiencing rapid growth in residential/commercial applications due to

legislative regulations and subsidies offered by the government. Increasing population in

Asia Pacific coupled with the increasing spending power of the regions results in

augmented demand for LPG. Use of LPG in refineries is a relatively unexplored market.

Use of LPG in other applications is expected to be slowest growing market over the

forecasted period accounted for 22.7% of the total market in 2013.

-

20.00

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80.00

100.00

120.00

140.00

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

200.002013

2020



Page 42

5.2 Residential/Commercial

5.2.1 Global demand for LPG market from Residential/Commercial

2013-2020

TABLE 18 Global LPG application residential/commercial

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAGR (2014-

20)


119.91 124.80 130.02 135.58 141.52 148.01 154.93 162.65 170.75 179.42 4.8%

Revenue (USD

billion) 96.69 97.65 102.03 106.46 111.11 116.22 121.69 127.84 134.30 141.23 4.8%


Global of application LPG in Residential/Commercial was 130.02 Million tons in 2013 and

is expected to reach 179.42 Million tons by 2020, growing at a CAGR of 4.8% from 2014

to 2020. Increasing LPG demand for domestic cooking and heating is expected to drive

its consumption over the forecast period. Along with being the biggest segment,

residential/commercial is also expected to be the fastest growing application for LPG,

followed by auto fuel application. Auto fuel segment is also expected to show substantial

growth and is expected to grow at a CAGR of 4.8%, in terms of revenue from 2014 to

2020. Residential/commercial has been experiencing continuous growing demand since

the last decade owing to increasing population especially in Africa and Asia Pacific

counties such as Brazil, Zimbabwe, Namibia, India, China, Pakistan, Philippines and

Vietnam respectively. In addition, LPG demand from residential/commercial boomed

since last few years due increasing legislative regulations and subsidies offered by the

government of emerging nations. However, Future demand growth will depend largely on

government tax policies and environmental regulations.

In terms of revenue, the market was valued at USD 102.03 billion in 2013 and is

expected to reach USD 1141.23 billion by 2020, growing at a CAGR of 4.8% from 2014

to 2020.



Page 43

5.2.2 Global demand for LPG market from Residential/Commercial , by

region, 2012-2020

TABLE 19 Global application of LPG in residential/commercial :Volume (Million Tons)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

7.55 7.75 7.96 8.18 8.42 8.68 8.96 9.27 9.59 9.93 3.3%

Europe 17.25 17.64 18.06 18.50 18.97 19.48 20.02 20.63 21.26 21.92 2.9%

Asia Pacific

53.55 56.16 58.94 61.92 65.10 68.57 72.28 76.41 80.77 85.45 5.5%

Middle East

18.40 19.17 19.99 20.86 21.79 22.80 23.89 25.09 26.36 27.71 4.8%

Latin America

23.16 24.09 25.07 26.13 27.25 28.47 29.78 31.24 32.77 34.40 4.7%

Total 119.91 124.80 130.02 135.58 141.52 148.01 154.93 162.65 170.75 179.42 4.8%


TABLE 20 Global application of LPG in residential/commercial market by region: Revenue

(USD Billion)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

7.35 7.35 7.60 7.85 8.11 8.39 8.68 9.02 9.37 9.74 3.7%

Europe 13.45 13.09 13.48 13.83 14.17 14.54 14.94 15.38 15.84 16.32 2.8%

Asia Pacific

43.76 45.27 47.65 50.04 52.57 55.35 58.33 61.73 65.31 69.17 5.5%

Middle East

14.11 14.19 14.82 15.48 16.18 16.94 17.76 18.66 19.61 20.62 4.9%

Latin America

18.02 17.75 18.48 19.26 20.08 21.00 21.97 23.05 24.17 25.38 4.7%

Total 96.69 97.65 102.03 106.46 111.11 116.22 121.69 127.84 134.30 141.23 4.8%




Page 44

5.3 Chemical

5.3.1 Global demand for LPG market from Chemical , 2012-2020

TABLE 21 Global application of LPG in chemical: Volume(Million Tons),Revenue (USD

Billion)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAGR (2014-

20)


62.76 64.72 66.79 69.00 71.34 73.89 76.60 79.64 82.79 86.14 3.8%

Revenue (USD

billion) 50.23 50.26 52.08 53.90 55.79 57.87 60.08 62.56 65.15 67.90 3.9%


Global of application LPG market in Chemical was 66.79 Million tons in 2013 and is

expected to reach 86.14 Million tons by 2020, growing at a CAGR of 3.8% from 2014 to

2020. Growth in petrochemical industries is expected to push the LPG demand in future.

FIG. 12 LPG consumption in petrochemical plant

Source: EIA



Page 45

Application of LPG in chemical sector primarily dominated by demand from

petrochemical plant as they use LPG as their feed stock due to low cost and high

calorific value. In 2012 according to EIA Petrochemical plant use 21.57% of global LPG

consumed. Moreover, demand of LPG for the production of petrochemical product

expected to increase rapidly at a CAGR of 3.8% from 2014 to 2020. However, growth in

consumption of LPG in petrochemical plant is relatively less than residential/ commercial

sector and industrial sector.

In terms of revenue, the market was valued at USD 7,793.8 billion in 2013 and is

expected to reach USD 11,096.1 billion by 2020, growing at a CAGR of 5.2% from 2014

to 2020.

5.3.2 Global demand for LPG market from Chemical , by region, 2012-

2020

TABLE 22 Global application of LPG in chemical industry by region: Volume (Million Tons)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

26.44 27.17 27.95 28.77 29.64 30.60 31.61 32.74 33.91 35.15 3.4%

Europe 7.06 7.21 7.36 7.53 7.70 7.90 8.10 8.33 8.57 8.82 2.7%

Asia Pacific

10.89 11.22 11.57 11.95 12.34 12.77 13.22 13.72 14.24 14.79 3.6%

Middle East

15.88 16.56 17.29 18.06 18.89 19.79 20.76 21.83 22.96 24.17 5.0%

Latin America

2.50 2.56 2.62 2.69 2.76 2.84 2.92 3.01 3.11 3.21 3.0%

Total 62.76 64.72 66.79 69.00 71.34 73.89 76.60 79.64 82.79 86.14 3.8%




Page 46

TABLE 23 Global LPG market revenue from chemical by region, (USD Billion)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

21.13 21.10 21.76 22.43 23.11 23.87 24.66 25.57 26.50 27.50 3.5%

Europe 5.45 5.30 5.46 5.60 5.73 5.87 6.03 6.21 6.39 6.58 2.7%

Asia Pacific

8.30 8.48 8.81 9.13 9.46 9.83 10.23 10.68 11.15 11.65 4.1%

Middle East

13.23 13.32 13.94 14.57 15.25 15.99 16.78 17.66 18.58 19.57 5.0%

Latin America

2.13 2.06 2.12 2.18 2.23 2.30 2.37 2.45 2.53 2.61 3.1%

Total 50.23 50.26 52.08 53.90 55.79 57.87 60.08 62.56 65.15 67.90 3.9%


5.4 Industrial

5.4.1 Global demand for LPG market from Industrial , 2012-2020

TABLE 24 Global application of LPG in industrial (Million Tons) (USD Billion)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAGR (2014-

20)


24.58 25.23 25.91 26.65 27.43 28.28 29.19 30.21 31.27 32.39 3.3%

Revenue (USD

billion) 22.41 22.37 23.11 23.84 24.59 25.41 26.29 27.29 28.33 29.44 3.6%


Global application of LPG market in Industrial was 25.91 Million tons in 2013 and is

expected to reach 32.39 Million tons by 2020, growing at a CAGR of 4.8% from 2014 to

2020. Application of LPG in different industries such as iron and steel industry for metal

cutting, forging, textile, paper, annealing and Billet expected to be key driver for growth

of consumption of LPG in industrial sector.


to reach USD 29.44 billion by 2020, growing at a CAGR of 3.6% from 2014 to 2020.



Page 47

5.4.2 Global demand for LPG market from Industrial , by region, 2012-

2020

TABLE 25 Global LPG market by region: Volume (Million Tons)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

9.14 9.37 9.61 9.86 10.13 10.43 10.74 11.10 11.46 11.85 3.1%

Europe 4.85 4.90 4.94 5.00 5.05 5.12 5.18 5.27 5.35 5.44 1.4%

Asia Pacific

8.03 8.35 8.70 9.06 9.45 9.87 10.32 10.82 11.34 11.90 4.6%

Middle East

0.722 0.736 0.752 0.768 0.785 0.803 0.822 0.844 0.866 0.888 2.4%

Latin America

1.83 1.87 1.91 1.96 2.01 2.06 2.12 2.19 2.25 2.32 2.9%

Total 24.58 25.23 25.91 26.65 27.43 28.28 29.19 30.21 31.27 32.39 3.3%


TABLE 26 Global application of LPG in industry: Revenue by region (USD Billion)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

7.81 7.78 8.00 8.23 8.46 8.72 8.99 9.30 9.62 9.95 3.2%

Europe 4.36 4.20 4.29 4.36 4.42 4.49 4.57 4.65 4.74 4.84 1.8%

Asia Pacific

7.55 7.75 8.10 8.45 8.82 9.23 9.66 10.15 10.67 11.22 4.8%

Middle East

0.941 0.931 0.957 0.982 1.010 1.039 1.070 1.105 1.140 1.177 3.1%

Latin America

1.75 1.71 1.76 1.82 1.88 1.94 2.01 2.09 2.17 2.25 3.6%

Total 22.41 22.37 23.11 23.84 24.59 25.41 26.29 27.29 28.33 29.44 3.6%




Page 48

5.5 Auto fuel

5.5.1 Global demand for LPG market from auto fuel , 2012-2020

TABLE 27 Global application for LPG in auto fuel: Volume(Million Tons) Revenue(USD

Billion

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAGR (2014-

20)


20.40

21.15

21.94

22.79

23.68

24.66

25.70

26.86

28.06

29.34 4.3%

Revenue (USD

billion)

21.33

21.44

22.38

23.30

24.25

25.30

26.42

27.68

29.00

30.41 4.5%


Global application of LPG market in automobile as auto fuel was 21.94 Million tons in

2013 and is expected to reach 29.34 Million tons by 2020, growing at a CAGR of 4.3 %

from 2014 to 2020. Automotive liquefied petroleum gas, also known as autogas, is used

as fuel in automobiles in many regions worldwide. Autogas has high energy content and

burns easily compared to other energy sources or fuels. Consumption of autogas has

been rapidly increasing from the last few years, majorly due to its environmental benefits.

National governments have been promoting use of autogas through various initiatives. In

the U.S. fuelling equipments (for LPG, electricity, E85 or diesel fuel blended with

biodiesel) installed between 1st January of 2006 to 31st December, 2013 is eligible for

30% tax credits. Similarly government of few other countries such as Algeria, Australia

and other have been pushing the local public to use autogas vehicles. In addition, focus

on autogas is increasing due to its functional and cost benefits over oil based fuels such

as gasoline or diesel. The operational and performance characteristics of autogas

vehicles are favorable as compared to other fuels. Autogas provides various operational

benefits such as low maintenance, less soot formation, and reduced frequency of

changing the spark plug and oil. Compared to other fuels such as gasoline and diesel,

autogas and CNG are greener fuels, out of which autogas is preferred due to its storage

benefits, availability, and low cost.


to reach USD. 30.41 billion by 2020, growing at a CAGR of 5.3%4.5% from 2014 to

2020.



Page 49

5.5.2 Global demand for LPG market from auto fuel, by region, 2012-

2020

TABLE 28 Global application of LPG in auto fuel : Volume by region (Million Tons)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

0.55 0.57 0.59 0.61 0.63 0.66 0.68 0.71 0.74 0.77 4.0%

Europe 9.75 10.04 10.34 10.66 11.00 11.36 11.75 12.18 12.63 13.10 3.5%

Asia Pacific

8.12 8.49 8.89 9.31 9.76 10.26 10.78 11.37 11.99 12.65 5.2%

Middle East

0.577 0.594 0.611 0.629 0.648 0.669 0.692 0.716 0.742 0.769 3.4%

Latin America

1.40 1.46 1.51 1.58 1.64 1.71 1.79 1.88 1.97 2.06 4.6%

Total 20.40 21.15 21.94 22.79 23.68 24.66 25.70 26.86 28.06 29.34 4.3%


TABLE 29 Global application in LPG in auto fuel : Revenue by region (USD Billion)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

0.92 0.92 0.95 0.98 1.01 1.04 1.08 1.12 1.16 1.20 3.5%

Europe 9.09 8.90 9.23 9.53 9.83 10.15 10.49 10.87 11.27 11.68 3.5%

Asia Pacific

9.05 9.37 9.87 10.36 10.89 11.47 12.09 12.80 13.55 14.36 5.6%

Middle East

0.647 0.644 0.667 0.689 0.713 0.740 0.768 0.799 0.831 0.865 3.8%

Latin America

1.63 1.60 1.67 1.74 1.82 1.90 1.99 2.08 2.19 2.30 4.7%

Total 21.33 21.44 22.38 23.30 24.25 25.30 26.42 27.68 29.00 30.41 4.5%




Page 50

5.6 Refinery

5.6.1 Global demand for LPG market from refinery, 2012-2020

TABLE 30 Global application of LPG in refinery: Volume (Million Tons) Revenue(USD

Billion)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAGR (2014-

20)


12.35 12.54 12.75 12.97 13.21 13.47 13.76 14.09 14.43 14.80 2.2%

Revenue (USD

billion) 8.94 8.81 8.98 9.15 9.31 9.50 9.71 9.95 10.20 10.46 2.3%


Global demand for LPG market in Industrial was 2,749.6 Million tons in 2013 and is

expected to reach 3,798.9 Million tons by 2020, growing at a CAGR of 4.8% from 2014

to 2020. Use of LPG in refinery for captive consumption such as for heating and power

generation for running refinery expected to drive the market over the forecasted period.

In terms of revenue, the market was valued at USD 6,459.3 billion in 2013 and is

expected to reach USD 9,214.3 billion by 2020, growing at a CAGR of 5.3% from 2014 to

2020.



Page 51

5.6.2 Global demand for LPG market from refinery, by region, 2012-

2020

TABLE 31 Global application of LPG in refinery : Volume by region, (Million Tons)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

6.06 6.09 6.12 6.16 6.20 6.24 6.30 6.36 6.43 6.49 0.9%

Europe 2.65 2.66 2.67 2.68 2.69 2.71 2.72 2.75 2.77 2.79 0.7%

Asia Pacific

2.86 2.99 3.13 3.28 3.45 3.62 3.81 4.02 4.25 4.48 5.3%

Middle East

0.180 0.184 0.188 0.192 0.196 0.201 0.206 0.211 0.216 0.222 2.4%

Latin America

0.61 0.63 0.64 0.66 0.68 0.70 0.72 0.75 0.77 0.80 3.3%

Total 12.35 12.54 12.75 12.97 13.21 13.47 13.76 14.09 14.43 14.80 2.2%


TABLE 32 Global LPG market revenue for refinery by region, 2012 – 2020 (USD Billion)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

4.13 4.02 4.04 4.05 4.05 4.07 4.08 4.11 4.13 4.15 0.4%

Europe 1.82 1.74 1.76 1.77 1.78 1.80 1.81 1.83 1.85 1.87 0.9%

Asia Pacific

2.26 2.34 2.46 2.58 2.71 2.86 3.01 3.18 3.37 3.56 5.5%

Middle East

0.176 0.174 0.179 0.184 0.188 0.194 0.199 0.205 0.212 0.218 2.9%

Latin America

0.55 0.53 0.55 0.56 0.57 0.59 0.61 0.62 0.64 0.66 2.9%

Total 8.94 8.81 8.98 9.15 9.31 9.50 9.71 9.95 10.20 10.46 2.3%




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5.7 Other

5.7.1 Global demand for LPG market from others, 2012-2020

TABLE 33 Global application of LPG in others industry: Volume (Million Tons)

Revenue(USD Billion)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAGR (2014-

20)


15.00 15.23 15.48 15.74 16.01 16.31 16.62 16.98 17.34 17.72 2.0%

Revenue (USD

billion) 12.55 12.36 12.58 12.79 12.98 13.21 13.44 13.72 14.00 14.29 1.9%


Global application of LPG in other market was 15.48 Million tons in 2013 and is expected

to reach 17.72 Million tons by 2020, growing at a CAGR of 2.0% from 2014 to 2020.

Demand of LPG from other industry such as agriculture, construction and food

processing industry is very less and show very slow growth rate.

In terms of revenue, the market was valued at USD 12.58billion in 2013 and is expected




Page 53

5.7.2 Global demand for LPG market from others, by region, 2012-2020

TABLE 34 Global application LPG in others industry : Volume by region, (Million Tons)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

5.34 5.43 5.52 5.62 5.72 5.84 5.96 6.10 6.25 6.40 2.2%

Europe 2.56 2.57 2.58 2.60 2.61 2.63 2.65 2.68 2.71 2.73 0.9%

Asia Pacific

5.80 5.91 6.03 6.15 6.28 6.41 6.55 6.71 6.86 7.02 2.2%

Middle East

0.325 0.331 0.337 0.343 0.350 0.357 0.364 0.373 0.381 0.390 2.1%

Latin America

0.98 0.99 1.01 1.03 1.05 1.07 1.09 1.12 1.14 1.17 2.2%

Total 15.00 15.23 15.48 15.74 16.01 16.31 16.62 16.98 17.34 17.72 2.0%


TABLE 35 Global application of LPG in others industry: Revenue by region (USD Billion)

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

North America

4.59 4.51 4.57 4.63 4.69 4.75 4.82 4.91 5.00 5.09 1.6%

Europe 2.18 2.09 2.12 2.14 2.16 2.19 2.21 2.24 2.27 2.30 1.2%

Asia Pacific

4.53 4.55 4.65 4.73 4.82 4.92 5.01 5.13 5.25 5.36 2.1%

Middle East

0.294 0.290 0.296 0.303 0.310 0.317 0.325 0.333 0.342 0.351 2.5%

Latin America

0.95 0.92 0.95 0.98 1.00 1.04 1.07 1.11 1.14 1.18 3.3%

Total 12.55 12.36 12.58 12.79 12.98 13.21 13.44 13.72 14.00 14.29 1.9%


Researc



Page 54

Chapter 6 LPG: Data Analysis by Regional

6.1 LPG market volume share by region, 2013 & 2020

Asia Pacific was the largest consumer of LPG due to very large population in the region.

Asia Pacific accounted for 35.00% of total market volume in 2013. In addition, Asia

Pacific is expected to be the fastest growing regional market for LPG at an estimated

CAGR of 5.0% from 2014 to 2020. China has the highest population in the world and is

also the largest consumer of LPG.

FIG. 13 LPG market volume share by region, 2013 & 2020


In addition the developing economies of India, Brazil and Russia are expected to be the

key consumers over the forecast period on account of the developing consumer goods

market in the region. North America and Europe are mature markets for LPG and are

expected to grow at a relatively sluggish rate over the forecast period.

NorthAmerica

Europe AsiaPacific

MiddleEast &Africa

LatinAmerica

0.00

20.00

40.00

60.00

80.00

100.00

120.00

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.002013 2020



Page 55

6.2 North America

6.2.1 North America LPG market estimates and forecast, 2012-2020

TABLE 36 North America LPG demand: Volume (Million Tons), revenue, (USD Billion)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAGR (2014-

20)


55.08 56.37 57.75 59.20 60.75 62.45 64.25 66.28 68.38 70.59 3.0%

Revenue (USD

billion) 45.93 45.67 46.92 48.16 49.42 50.83 52.32 54.02 55.77 57.63 3.0%


North American market for LPG was 57.75 Million tons in 2013 and is expected to reach

70.59 Million tons by 2020, growing at a CAGR of 3.0% in 2020.

Production of LPG in the US has been growing owing to evolution of shale gas coupled

with development in domestic natural gas resource base. It is estimated by EIA that US

has largest reserve of Shale gas and first time in 40 year. The USA becomes net

exporter of LPG. Therefore in the first 11 months of 2012, the daily LPG shipments were

194,000 barrels in comparison to imports which stood at 169,700 barrels. In addition the

US has largest number of refinery which is a big source of propane. In USA, LPG

industries also get benefits of effective and efficient distribution and storage system.



6.2.2 North America LPG market estimate and forecast by source, 2012

– 2020

TABLE 37 North America LPG market by source: Volume (Million Tons)

Source 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

Refinery 15.97 16.26 16.57 16.90 17.25 17.64 18.05 18.53 19.01 19.52 2.4%

Associated Gas

31.95 32.78 33.65 34.59 35.57 36.66 37.80 39.09 40.42 41.83 3.2%

Non associate

d gas 7.16 7.33 7.52 7.71 7.92 8.15 8.39 8.66 8.94 9.24 3.1%

Total 55.08 56.37 57.75 59.20 60.75 62.45 64.25 66.28 68.38 70.59 3.0%




Page 56

TABLE 38 North America LPG market revenue by source, (USD Billion)

Source 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

Refinery 14.24 14.09 14.40 14.71 15.02 15.38 15.75 16.18 16.62 17.09 2.5%

Associated Gas

25.26 25.18 25.94 26.69 27.46 28.31 29.21 30.24 31.30 32.42 3.3%

Non associate

d gas 6.43 6.40 6.58 6.76 6.94 7.14 7.36 7.60 7.85 8.12 3.1%

Total 45.93 45.67 46.92 48.16 49.42 50.83 52.32 54.02 55.77 57.63 3.0%


6.2.3 North America LPG market, by application, 2012 – 2020

TABLE 39 North America LPG application: Volume (Million Tons)


20)

Residential/Commerci

al 7.55 7.75 7.96 8.18 8.42 8.68 8.96 9.27 9.59 9.93 3.3%

Chemical 26.44 27.17 27.95 28.77 29.64 30.60 31.61 32.74 33.91 35.15 3.4%

Industrial 9.14 9.37 9.61 9.86 10.13 10.43 10.74 11.10 11.46 11.85 3.1%

Auto fuel 0.55 0.57 0.59 0.61 0.63 0.66 0.68 0.71 0.74 0.77 4.0%

Refinery 6.06 6.09 6.12 6.16 6.20 6.24 6.30 6.36 6.43 6.49 0.9%

Others 5.34 5.43 5.52 5.62 5.72 5.84 5.96 6.10 6.25 6.40 2.2%

Total 55.08 56.37 57.75 59.20 60.75 62.45 64.25 66.28 68.38 70.59 3.0%




Page 57

TABLE 40 North America LPG application: Revenue (USD billion)


20)


al 7.35 7.35 7.60 7.85 8.11 8.39 8.68 9.02 9.37 9.74 3.7%

Chemical 21.13 21.10 21.76 22.43 23.11 23.87 24.66 25.57 26.50 27.50 3.5%

Industrial 7.81 7.78 8.00 8.23 8.46 8.72 8.99 9.30 9.62 9.95 3.2%

Auto fuel 0.92 0.92 0.95 0.98 1.01 1.04 1.08 1.12 1.16 1.20 3.5%

Refinery 4.13 4.02 4.04 4.05 4.05 4.07 4.08 4.11 4.13 4.15 0.4%

Others 4.59 4.51 4.57 4.63 4.69 4.75 4.82 4.91 5.00 5.09 1.6%

Total 45.93 45.67 46.92 48.16 49.42 50.83 52.32 54.02 55.77 57.63 3.0%




Page 58

6.3 Europe

6.3.1 Europe LPG market estimates and forecast, 2012-2020

TABLE 41 Europe LPG market demand: Volume (Million Tons) and revenue, (USD Billion)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAGR (2014-

20)


44.12 45.01 45.96 46.96 48.02 49.20 50.43 51.84 53.28 54.80 2.6%

Revenue (USD

billion) 36.35 35.33 36.33 37.23 38.08 39.02 40.05 41.19 42.36 43.59 2.7%


European market for LPG was 45.96 million tons in 2013 and is expected to reach 54.80

Million tons by 2020, growing at a CAGR of 2.6% from 2014 to 2020. Among all regional

market Europe has least consumption of LPG in 2013 and expected to show slowest

CAGR growth rate in 2020. However, Implementation of stringent environmental

regulation coupled with aim of European counties to deduce pollution level up to 20% till

2020 expected to increase the demand of LPG. Additionally in order to excel the LPG

based vehicle in Europe many European cities such as Milan, London provide exemption

from congestion charges.





Page 59

6.3.1 Europe LPG market estimate and forecast by source, 2012 – 2020

TABLE 42 Europe LPG source: Volume (Million Tons)

Source 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

Refinery 22.06 22.45 22.87 23.31 23.78 24.30 24.85 25.49 26.13 26.81 2.4%

Associated Gas

7.94 8.12 8.31 8.51 8.72 8.95 9.20 9.48 9.76 10.06 2.8%

Non associate

d gas 14.12 14.44 14.78 15.14 15.52 15.94 16.38 16.88 17.39 17.93 2.9%

Total 44.12 45.01 45.96 46.96 48.02 49.20 50.43 51.84 53.28 54.80 2.6%


TABLE 43 Europe LPG by source: Revenue (USD Billion)

Source 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

Refinery 16.72 16.20 16.62 16.98 17.32 17.70 18.11 18.57 19.04 19.54 2.4%

Associated Gas

7.27 7.07 7.28 7.47 7.65 7.84 8.06 8.30 8.54 8.80 2.8%

Non associate

d gas 12.36 12.05 12.43 12.78 13.12 13.48 13.88 14.32 14.77 15.25 3.0%

Total 36.35 35.33 36.33 37.23 38.08 39.02 40.05 41.19 42.36 43.59 2.7%


6.3.2 Europe LPG market, by application, 2012 – 2020

TABLE 44 Europe LPG volume by application, (Million Tons)


20)


al 17.25 17.64 18.06 18.50 18.97 19.48 20.02 20.63 21.26 21.92 2.9%

Chemical 7.06 7.21 7.36 7.53 7.70 7.90 8.10 8.33 8.57 8.82 2.7%

Industrial 4.85 4.90 4.94 5.00 5.05 5.12 5.18 5.27 5.35 5.44 1.4%

Auto fuel 9.75 10.04 10.34 10.66 11.00 11.36 11.75 12.18 12.63 13.10 3.5%

Refinery 2.65 2.66 2.67 2.68 2.69 2.71 2.72 2.75 2.77 2.79 0.7%



Page 60

Others 2.56 2.57 2.58 2.60 2.61 2.63 2.65 2.68 2.71 2.73 0.9%

Total 44.12 45.01 45.96 46.96 48.02 49.20 50.43 51.84 53.28 54.80 2.6%


TABLE 45 Europe LPG market revenue by application, (USD billion)


20)


al 13.45 13.09 13.48 13.83 14.17 14.54 14.94 15.38 15.84 16.32 2.8%

Chemical 5.45 5.30 5.46 5.60 5.73 5.87 6.03 6.21 6.39 6.58 2.7%

Industrial 4.36 4.20 4.29 4.36 4.42 4.49 4.57 4.65 4.74 4.84 1.8%

Auto fuel 9.09 8.90 9.23 9.53 9.83 10.15 10.49 10.87 11.27 11.68 3.5%

Refinery 1.82 1.74 1.76 1.77 1.78 1.80 1.81 1.83 1.85 1.87 0.9%

Others 2.18 2.09 2.12 2.14 2.16 2.19 2.21 2.24 2.27 2.30 1.2%

Total 36.35 35.33 36.33 37.23 38.08 39.02 40.05 41.19 42.36 43.59 2.7%




Page 61

6.4 Asia Pacific

6.4.1 Asia Pacific LPG market estimates and forecast, 2012-2020

TABLE 46 Asia Pacific LPG market demand in volume (Million Tons) and revenue, (USD

Billion)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAGR (2014-

20)


89.25 93.13 97.26 101.67 106.37 111.49 116.96 123.05 129.44 136.29 5.0%

Revenue (USD

billion) 75.46 77.76 81.53 85.30 89.28 93.66 98.33 103.67 109.29 115.32 5.2%


Asia Pacific market for LPG was 97.26 million tons in 2013 and is expected to reach

136.29 million tons by 2020, growing at a CAGR of 5.0% from 2014 to 2020.

Asia Pacific along with being the largest market is also fastest growing regional market

for LPG owing to rapidly increasing need for energy in all end-use sectors: residential/

commercial, industrial, transportation and electric-power. Moreover, Increasing personal

disposable income and government supports to residential user are some factor

contributing increase in LPG in Asia Pacific region. Presently, Japan account for more

than half of the total LPG demand but it has slow growth rate in comparison to China. It

is expected that by 2020 China and Korea demand together for LPG will surpass Japan.

The Indian subcontinent, like China, Pakistan, Vietnam, has massive growth prospective

for LPG demand. According to estimate by EIA demand should rise by almost 90%

through 2020. LPG demand from industrial sector is primarily centered in Japan. But

High prices of LPG in last decade hurt LPG competitive position in industrial market

.Consumption of LPG in chemical sector can be seen high from 2011 but it is not

growing as significantly like residential sector owing to high price of LPG in comparison

to other feedstocks like naphtha. Moreover export of propane expected to increase as

China going to establish 17 new propane dehydrogenation projects and LPG drawn from

project are primarily used for industrial purpose which likely to cause a positive shift in

trade.





Page 62

6.4.2 Asia Pacific LPG market, by source, 2012 – 2020

TABLE 47 Asia Pacific LPG source: Volume (Million Tons)

Source 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

Refinery 64.26 66.96 69.83 72.90 76.16 79.72 83.51 87.73 92.16 96.90 4.9%

Associated Gas

6.25 6.47 6.71 6.96 7.23 7.53 7.84 8.18 8.54 8.93 4.2%

Non associate

d gas 18.74 19.70 20.72 21.81 22.98 24.25 25.61 27.13 28.74 30.46 5.7%

Total 89.25 93.13 97.26 101.67 106.37 111.49 116.96 123.05 129.44 136.29 5.0%


TABLE 48 Asia Pacific LPG source :Revenue (USD Billion)

Source 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

Refinery 52.82 54.36 56.91 59.45 62.14 65.10 68.24 71.84 75.63 79.68 5.0%

Associated Gas

6.04 6.20 6.47 6.75 7.04 7.35 7.69 8.08 8.48 8.91 4.8%

Non associate

d gas 16.60 17.21 18.15 19.10 20.11 21.21 22.40 23.75 25.18 26.72 5.8%

Total 75.46 77.76 81.53 85.30 89.28 93.66 98.33 103.67 109.29 115.32 5.2%


6.4.3 Asia Pacific LPG market, by application, 2012 – 2020

TABLE 49 Asia Pacific LPG volume by application, (Million Tons)


20)


al 53.55 56.16 58.94 61.92 65.10 68.57 72.28 76.41 80.77 85.45 5.5%

Chemical 10.89 11.22 11.57 11.95 12.34 12.77 13.22 13.72 14.24 14.79 3.6%

Industrial 8.03 8.35 8.70 9.06 9.45 9.87 10.32 10.82 11.34 11.90 4.6%

Auto fuel 8.12 8.49 8.89 9.31 9.76 10.26 10.78 11.37 11.99 12.65 5.2%

Refinery 2.86 2.99 3.13 3.28 3.45 3.62 3.81 4.02 4.25 4.48 5.3%



Page 63

Others 5.80 5.91 6.03 6.15 6.28 6.41 6.55 6.71 6.86 7.02 2.2%

Total 89.25 93.13 97.26 101.67 106.37 111.49 116.96 123.05 129.4

4 136.29 5.0%


TABLE 50 Asia Pacific LPG application: Revenue (USD Billion)


20)


al 43.76 45.27 47.65 50.04 52.57 55.35 58.33 61.73 65.31 69.17 5.5%

Chemical 8.30 8.48 8.81 9.13 9.46 9.83 10.23 10.68 11.15 11.65 4.1%

Industrial 7.55 7.75 8.10 8.45 8.82 9.23 9.66 10.15 10.67 11.22 4.8%

Auto fuel 9.05 9.37 9.87 10.36 10.89 11.47 12.09 12.80 13.55 14.36 5.6%

Refinery 2.26 2.34 2.46 2.58 2.71 2.86 3.01 3.18 3.37 3.56 5.5%

Others 4.53 4.55 4.65 4.73 4.82 4.92 5.01 5.13 5.25 5.36 2.1%

Total 75.46 77.76 81.53 85.30 89.28 93.66 98.33 103.67 109.2

9 115.32 5.2%




Page 64

6.5 Middle East & Africa

6.5.1 Middle East & Africa LPG market estimates and forecast, 2012 -

2020

TABLE 51 Middle East & Africa LPG market demand, volume (Million Tons) and revenue,

(USD Billion)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAGR (2014-

20)


36.08 37.57 39.16 40.85 42.66 44.63 46.73 49.07 51.52 54.15 4.8%

Revenue (USD

billion) 29.39 29.54 30.86 32.21 33.65 35.22 36.91 38.76 40.71 42.80 4.9%


Middle East market for LPG was 39.16 million tons in 2013 and is expected to reach



to reach USD 42.80billion by 2020, growing at a CAGR of 4.9% from 2014 to 2020. In

Middle East and Africa LPG production primarily comes from non-associated gas key

counties such as Qatar and UAE has largest reserve of natural gas.

The Middle East is a key source of LPG and produces ~54 MTPA in 2013. This

production comes primarily from gas fields and only 10% coming from refineries.

Moreover the production capacity of the Middle East is expected to grow to ~85 MTPA

by 2020 of which only ~25 MTPA is meant to meet domestic demand.

FIG. 14 LPG production from non-associated gas well




Page 65

Most of natural gas production fields are coming from the Qatar, UAE and Iran due to

their geographical structure. Moreover, establishment of two new gas projects in Abu

Dhabi namely Integrated gas development of 3.3 million mt/yr and Shah Gas

development of 810,000 mt/yr expected to increase LPG production to 13.761 million mt.

FIG. 15 Natural gas production




Page 66

6.5.2 Middle East & Africa LPG market, by source, 2012 – 2020

TABLE 52 Middle East & Africa LPG source: Volume (Million Tons)

Source 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

Refinery 3.61 3.72 3.83 3.95 4.08 4.22 4.36 4.53 4.70 4.88 3.6%

Associated Gas

6.86 7.16 7.49 7.84 8.21 8.61 9.05 9.53 10.04 10.58 5.1%

Non associate

d gas 25.62 26.70 27.84 29.07 30.37 31.80 33.32 35.01 36.79 38.69 4.9%

Total 36.08 37.57 39.16 40.85 42.66 44.63 46.73 49.07 51.52 54.15 4.8%


TABLE 53 Middle East & Africa LPG source: Revenue (USD Billion)

Source 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

Refinery 2.65 2.63 2.71 2.79 2.88 2.98 3.08 3.19 3.31 3.43 3.5%

Associated Gas

5.29 5.32 5.56 5.81 6.07 6.36 6.67 7.00 7.36 7.74 4.9%

Non associate

d gas 21.46 21.60 22.59 23.61 24.70 25.89 27.16 28.57 30.05 31.63 5.0%

Total 29.39 29.54 30.86 32.21 33.65 35.22 36.91 38.76 40.71 42.80 4.9%




Page 67

6.5.3 Middle East & Africa LPG market, by application, 2012 – 2020

TABLE 54 Middle East & Africa LPG application : Volume (Million Tons),


20)


al 18.40 19.17 19.99 20.86 21.79 22.80 23.89 25.09 26.36 27.71 4.8%

Chemical 15.88 16.56 17.29 18.06 18.89 19.79 20.76 21.83 22.96 24.17 5.0%

Industrial 0.722 0.736 0.752 0.768 0.785 0.803 0.822 0.844 0.866 0.888 2.4%

Auto fuel 0.577 0.594 0.611 0.629 0.648 0.669 0.692 0.716 0.742 0.769 3.4%

Refinery 0.180 0.184 0.188 0.192 0.196 0.201 0.206 0.211 0.216 0.222 2.4%

Others 0.325 0.331 0.337 0.343 0.350 0.357 0.364 0.373 0.381 0.390 2.1%

Total 36.08 37.57 39.16 40.85 42.66 44.63 46.73 49.07 51.52 54.15 4.8%


TABLE 55 Middle East & Africa LPG application :Revenue (USD billion)


20)


al 14.11 14.19 14.82 15.48 16.18 16.94 17.76 18.66 19.61 20.62 4.9%

Chemical 13.23 13.32 13.94 14.57 15.25 15.99 16.78 17.66 18.58 19.57 5.0%

Industrial 0.941 0.931 0.957 0.982 1.010 1.039 1.070 1.105 1.140 1.177 3.1%

Auto fuel 0.647 0.644 0.667 0.689 0.713 0.740 0.768 0.799 0.831 0.865 3.8%

Refinery 0.176 0.174 0.179 0.184 0.188 0.194 0.199 0.205 0.212 0.218 2.9%

Others 0.294 0.290 0.296 0.303 0.310 0.317 0.325 0.333 0.342 0.351 2.5%

Total 29.39 29.54 30.86 32.21 33.65 35.22 36.91 38.76 40.71 42.80 4.9%




Page 68

6.6 Latin America

6.6.1 Latin America LPG market estimates and forecast, 2012-2020

TABLE 56 Latin America LPG market demand, volume (Million Tons) and revenue, (USD

Billion) 2012 – 2020,

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAGR (2014-

20)


30.47 31.59 32.78 34.04 35.39 36.86 38.43 40.18 42.01 43.97 4.4%

Revenue (USD

billion) 25.03 24.58 25.53 26.53 27.59 28.76 30.02 31.40 32.84 34.39 4.4%


Latin America market for LPG was 32.78 million tons in 2013 and is expected to reach






Page 69

6.6.2 Latin America LPG market, by source, 2012 – 2020

TABLE 57 Latin America LPG source : Volume (Million Tons)

Source 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

Refinery 115.9

5 119.77 123.84 128.17 132.78 137.82 143.19 149.20 155.46 162.14 4.0%

Associated Gas

66.40 68.44 70.62 72.92 75.38 78.06 80.91 84.10 87.42 90.94 3.7%

Non associate

d gas 72.65 75.45 78.44 81.63 85.03 88.74 92.70 97.12 101.76 106.71 4.6%

Total 255.0

0 263.67 272.90 282.72 293.18 304.62 316.80 330.42 344.63 359.80 4.1%


TABLE 58 Latin America LPG source : Revenue (USD Billion)

Source 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR (2014-

20)

Refinery 95.18 95.85 99.51 103.13 106.89 111.04 115.47 120.51 125.78 131.41 4.1%

Associated Gas

54.62 54.36 56.25 58.16 60.13 62.31 64.62 67.23 69.94 72.82 3.8%

Non associate

d gas 62.35 62.68 65.40 68.14 71.01 74.16 77.53 81.30 85.26 89.50 4.7%

Total 212.1

5 212.88 221.17 229.42 238.03 247.50 257.62 269.04 280.98 293.72 4.2%




Page 70

6.6.3 Latin America LPG market, by application, 2012 – 2020

TABLE 59 Latin America LPG application: volume (Million Tons)


20)


al 119.91 124.80 130.02 135.58 141.52 148.01 154.93 162.65

170.75

179.42 4.8%

Chemical 62.76 64.72 66.79 69.00 71.34 73.89 76.60 79.64 82.79 86.14 3.8%

Industrial 24.58 25.23 25.91 26.65 27.43 28.28 29.19 30.21 31.27 32.39 3.3%

Auto fuel 20.40 21.15 21.94 22.79 23.68 24.66 25.70 26.86 28.06 29.34 4.3%

Refinery 12.35 12.54 12.75 12.97 13.21 13.47 13.76 14.09 14.43 14.80 2.2%

Others 15.00 15.23 15.48 15.74 16.01 16.31 16.62 16.98 17.34 17.72 2.0%

Total 255.00 263.67 272.90 282.72 293.18 304.62 316.80 330.42 344.6

3 359.80 4.1%


TABLE 60 Latin America LPG application : Revenue (USD billion)


20)


al 96.69 97.65 102.03 106.46 111.11 116.22 121.69 127.84

134.30

141.23 4.8%

Chemical 50.23 50.26 52.08 53.90 55.79 57.87 60.08 62.56 65.15 67.90 3.9%

Industrial 22.41 22.37 23.11 23.84 24.59 25.41 26.29 27.29 28.33 29.44 3.6%

Auto fuel 21.33 21.44 22.38 23.30 24.25 25.30 26.42 27.68 29.00 30.41 4.5%

Refinery 8.94 8.81 8.98 9.15 9.31 9.50 9.71 9.95 10.20 10.46 2.3%

Others 12.55 12.36 12.58 12.79 12.98 13.21 13.44 13.72 14.00 14.29 1.9%

Total 212.15 212.88 221.17 229.42 238.03 247.50 257.62 269.04 280.9

8 293.72 4.2%




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Chapter 7 Company Profiles

7.1 ExxonMobil

7.1.1 Company Overview

ExxonMobil is an American multinational oil and gas company incorporated in 1999 by

the merger of two major oil companies “Exxon and Mobil”. The company operates

business under three division namely Upstream which comprises exploration, extraction of

oil and gas, shipping, and wholesale operations). Downstream consists of refining,

marketing, and retail operations and Chemical division deals in manufacturing and sell of

petrochemical. It supplies polyolefin, olefins, aromatics and various other petrochemicals.

The company has number of subsidiary companies such as Imperial Oil Limited in Canada,

and Sea River Maritime, a petroleum shipping company. ExxonMobil is the largest

refiner in world using 37 refineries operating in 21 counties in addition ExxonMobil

ranked 5 globally in Forbes Global 2000 list in 2013

7.1.2 Financial Performance

2012 2013

USD 480,681 million USD 438,255 million

7.1.3 Product Benchmarking

Product Application

Esso Gas

Cooking, heating Mobil LP-Gas

7.1.4 Strategic Initiatives

In 2013, ExxonMobil along with Statoil will invest USD 30 billion in LPG

production located in Tanzania.

In 2012, ExxonMobil together with Petrochemical Corporation of Singapore

(PCS) and Shell decided to build LNG import terminal in Singapore.

In 2004, ExxonMobil through one of his subsidiary sells Hattiesburg based

liquefied petroleum gas (LPG) terminal to Louis Dreyfus Energy Services



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In 2010, ExxonMobil planning to merge with natural-gas producer XTO Energy

Inc. (XTO). This merger will open the door for ExxonMobil's grand investment in

U.S. Shale gas.

7.2 Valero Energy Corporation


Valero Energy Corporation is an international marketer and manufacturer of

transportation fuels and other petrochemical products. It is an American based company

headquarters in Texas It operates through two segments, Refining and Ethanol. The

Refining segment is deals in refining, marketing, distribution and transportation. The

Ethanol segment produces ethanol and distillers grains. It has 16 refineries located in the

United States (U.S.), the United Kingdom (U.K.), Canada, and Aruba and sells their

refined product through approximately 7,400 outlets under the Valero, Shamrock,

Diamond Shamrock, Ultramar, Beacon, and Texaco names. Valero serves in gasoline,

diesels, jet fuels, propane, sulphur, etc. Valero’s propane products are used for

petrochemical feed, refined butane; natural gasoline is sold and purchased for

petrochemical feed and gasoline blending.


2012 2013

USD 139,250 million USD 138,074 million

Note: Operating revenue


In 2011, Valero purchase Pembroke Refinery from Chevron

Valero expands its Texas refinery to increase plants profitability and increase

total plant capacity.

Valero completed the divestment process with Eagle refinery and its related

Assets.

Valero plans to acquire Ultramar Diamond Shamrock



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7.3 Sinopec


Sinopec is one of the largest integrated energy and chemical company. It is owned by

China Petroleum & Chemical Corporation and has headquarters in Beijing. Sinopec's

deals in oil and gas exploration, refining, and marketing; production of chemical fibers,

petrochemicals, chemical fertilizers, and other chemical products; storage and pipeline

transportation of natural gas and crude oil and also involved in import and export

business of crude oil, natural gas, petrochemicals, refined oil products, and other

chemicals. The company is listed in Hong Kong stock exchange and also trades in New

York stock exchange and Shanghai Stock Exchange. Sinopec Group holds various

subsidiary companies under it. Sinopec Group is one of the major state owned petroleum

energy and chemical company in China. It also serves LPG which is served as a

petrochemical feedstock for ethylene production with the help of hydrocarbons, produced

through steam conversion.


2012 2013

USD 448,779.42million USD 463,963.89million

*Note: 1 USD= 6. 21RMB

7.3.3 Strategic Initiative

In 2014, Sinopec stuck deal with Phillips 66 to buy LPG.



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7.4 BP PLC


BP Plc., also Known As British Petroleum Company, is a British Oil and Gas

multinational company; headquartered in London, U.K. BP is the sixth largest energy

company by market capitalization and oil and gas company, measured by revenue of

2012. The company operates in many areas of oil and gas such as production and

exploration, distribution and marketing, refining, power generation, petrochemicals. BP

also deals with renewable energy like biofuels and wind power. BP operates in more

than 80 counties globally, and produces 3.2 million barrels of oil every day.


2012 2013

USD 375,765 Million USD 379,136 Million


Product Application

Petgaz Cooking fuel


In 2012, BP announces to sell Bottle and Wholesale LPG and Petgaz branded

autogas business to Russian based Oteko Group.

In 2012, BP announces its plan to sell global LPG bottle business which also

includes sales of LPG storage terminals, bottle filling plants. The decision taken

to concentrate on core competitive skill of company such as refining and

marketing businesses.

In 2003, BP Sharjah makes world record of achieving 99.75% of propane and

100 % of butane at its plants in Sajaa.

In 2004, the company announces to sell complete business of BP Czech

Republic LPG Business to UGI Corporation. The decision to sell Czech Republic

LPG Business as strategy to concentrate on refining and marketing businesses

BP and the Singapore Petroleum Company Limited (SPC) announced conditional

agreement for SPC to purchase LPG Business in Singapore retail network and

related assets for USD $70 million.



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7.5 Indian Oil Corporation (IOCL)


Indian Oil Corporation is an India based company present in entire hydrocarbon value

chain – starting from exploration & production of crude oil & gas, refining, marketing,

retailing coupled with pipeline transportation of petroleum products and petrochemicals.

Indian Oil along with their subsidiaries such as IBP account for 49% total share in the

petroleum product market. Moreover, Company has 31% share in refining and 67%

share in pipeline in India. The Indian Oil has own and operates 10 refineries with

capacity of 65.7 MMT per year across different part of India. In addition the company

also deals in cooking fuel and automobile fuel by brand name of Indian and Autogas

respectively. Presently Indane is one of the largest packed-LPG brands in the world and

got status of “Consumer Superbrand’ status by the Superbrands Council of India.


2012 2013

USD 67299.3 Million USD 75498.2million

Note: 1 Indian Rupee = 0.017 US Dollar


Product Application

Indiane Cooking Gas

Auto Gas Automobile


• In 2011, Indian Oil started LPG refilling booking through SMS and IVRS system. This

enables the customer to book LPG cylinder from home.



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Chapter 8 Conclusion

On basis of above data analysis I come to following conclusions

The global market for LPG was 270.76 million tons in 2013 and is expected to reach

356.98 million tons by 2020, growing at a CAGR of 4.1% from 2014 to 2020. In terms of

revenue, the market was valued at USD 219.43 billion in 2013 and is expected to reach

USD 291.42 billion by 2020, growing at a CAGR of 4.2% from 2014 to 2020.

LPG market expected to grow forecasted period owing to following key drivers.

Increasing demand for natural gas vehicles (NGV)

High cost of petroleum based fuels

Growing importance toward maintaining national security and saving economy

from global oil price risks

NGVs is environment friendly owing to natural gas is clean burning gas than

gasoline and HSD

Shift towards replacing coal and wood as a domestic fuel

Black carbon is one of the major contributors to climate change and cause pollution to

environment. According to estimate of United nation, 2004 approximately 26% of global

co2 are attributed from residential sector.

However there are some constraints which resist the market growth.

Volatility in raw material prices

Crude oil, associated and non-associated gas are primary source of LPG. Thus changes

in their prices have direct impact on price of price of LPG globally.

Key opportunities in LPG market are following

Increasing demand from Asia pacific region

Use of LPG in fractional drilling of well

Natural gas vehicles witnessing Growth



Page 77

PESTEL Analysis -

LPG market gaining popularity owing to favorable government support such as

subsidy, promotion of alternative fuel such as LPG and CNG coupled with

development in technological such as LPG-Sep systems to separate LPG from

Associated gas. However , Volatility in raw material price of LPG along with capital

intensive nature of LPG project act as hinder to market growth.

CRITICAL SUCCESS FACTORS (CSFS)

The rising demand for energy from various sectors has boosted the demand LPG

Increasing stringent regulation on carbon emission

Increasing Investment in emerging market of Asia Pacific, Africa and Middle East.


and non-associated gas. Highest amount of LPG is obtained from the refineries owing to

increasing number of refineries in Asia Pacific countries such as India, China and Brazil.

LPG produced from refineries accounts for 45.4% of total LPG production. As

environment regulation in this countries are not stringent. In addition Government

provides various type of incentive and tax holiday for new private players to establish

refinery. LPG sourced from associated gas is a relatively unexplored area due to lack of

state of art technology such as “LPG-Sep systems”. LPG sourced from non-associated

gas is expected to be the fastest growing market at an estimated CAGR of 4.6% from

2014 to 2020


and other where there is a growing demand. LPG has been experiencing rapid growth in

residential/commercial applications due to legislative regulations and subsidies offered

by the government. Increasing population in Asia Pacific coupled with the increasing

spending power of the regions results in augmented demand for LPG. Use of LPG in

refineries is a relatively unexplored market. Use of LPG in other applications is expected

to be slowest growing market over the forecasted period accounted for 22.7% of the total

market in 2013



Page 78

Asia Pacific along with being the largest market accounted for 35.00% of total market

volume in 2013. In addition, Asia Pacific is expected to be the fastest growing regional

market for LPG at an estimated CAGR of 5.0% from 2014 to 2020 owing to rapidly

increasing need for energy in all end-use sectors: residential/ commercial, industrial,

transportation and electric-power. Moreover, Increasing personal disposable income and

government supports to residential user are some factor contributing increase in LPG in

Asia Pacific region. China has the highest population in the world and is also the largest

consumer of LPG.

In North America, the production of LPG in the US has been growing owing to evolution

of shale gas coupled with development in domestic natural gas resource base. In

addition, LPG industries in USA also get benefits of effective and efficient distribution

and storage system.

Among all regional market Europe has least consumption of LPG in 2013 and expected

to show slowest CAGR growth rate in 2020. However, Implementation of stringent

environmental regulation coupled with aim of European counties to deduce pollution

level up to 20% till 2020 expected to increase the demand of LPG. Additionally in order

to excel the LPG based vehicle in Europe many European cities such as Milan, London

provide exemption from congestion charges are some factor expected to increase

demand in forecasted period. But still growth in European countries will be slow in

comparison to other region



Page 79

Chapter 9 Limitation

1. Data is collected from secondary sources so there are chances of error.

2. The strategies have to be implemented in real market conditions to find out their

efficacy.

3. Availability of time and budget constraints.

4. Technical analysis is used to forecast LPG prices but sometimes it may not yield

effective results.

5. Fundamentals tools used for valuation vary with the industry which again time

consuming process to decide which better

6. Data analyze by me may misrepresented although it may not be wrong but

possibility success may be less.

7. Future uncertainty owing to frequent change happing in economy, industry and

company, especially oil and gas industry. Therefore data required to updated

frequently.



Page 80

Chapter 10 Bibliography

Report consider

1. Annual review 2012 AGPL Europe

2. OPIS North America LPG Report

3. Energy trend in selected manufacturing sector by EPA

4. Alex Evans report on Potential for LPG Market Expansion

5. LPG World by Argus

6. World LPG market outlook by Purvin & Gertz

7. Natural gas price volatility in UK and North America

8. Statistical Review of Global LP Gas by Argus

9. LPG Industry road Map by AEGPL

10. GLOBAL TRENDS IN OIL & GAS MARKETS TO 2025 by LUKOIL

11. American LPG report by OPIS

12. Europe LPG report

Article consider

1. GLOBAL LPG MARKETS BEGIN RECOVERY FROM RECESSION

2. LPG – A Growing Global MARKET

3. Statistical review 2020 by Argus

4. Auto gas sees continued market growth in 2011

Websites

1. www2.doe.gov.ph/DO/Report2007.html

2. www.pazgas.co.il/eng/greentechnology/aroundtheworld/

3. www.brcgb.co.uk/about-lpg/lpg-around-the-world

4. www.brcgb.co.uk/conversions

5. www.brcgb.co.uk/about-lpg



Page 81

Other sources considered are

1. ICIS

2. Oil & Gas Journal

3. WLPGA

4. Platts

5. U.S. EIA

6. Company Annual Reports

7. GVR

Documents

Report_LPG Market Analysis And Forecast