Liquefied Petroleum Gas which is well known as LPG is a mixture of Propane and Butane. Propane and Butane are chemically quite similar but the small differences in their properties mean that they are particularly suited to specific uses. It is a portable, clean, efficient, cost-effective and eco-friendly energy source which is readily available to consumers around the world. More than 3 billion people around the world use LPG and the consumption exceeds 300 million tones.
LPG is a versatile energy source which can be used in more than 1,000 different applications. The increase in awareness regarding the benefits associated with the usage of liquefied petroleum gas (LPG) as a substitute for other fossil fuels is the key factor inspiring the use of LPG. The increase in demand for liquefied petroleum gas (LPG) owing to its unique properties such as clean, efficient, and portage energy source has gained considerable popularity across the globe. The wide use of LPG in different industrial spheres for multiple applications has influenced the demand for the market. Moreover, the rise in usage of LPG across the residential sector, particularly as a clean-burning smoke-free fuel for indoor cooking in different regions has projected the growth for the Liquefied Petroleum Gas (LPG) Consumption. Liquefied petroleum gas is one of the most versatile and flexible fuels and is majorly adopted as an alternative fuel source across the globe.
Some examples of LPG applications are:
Home : Cooking, Hot water, Heating etc.
Power Generation : Generators, Gas Turbines, Co-gen & Tri-Gen.
Industrial use : LPG is also being used as an alternative to natural gas in manufacturing-based industries like textiles, ceramics, food processing, metal processing, and chemical production, boilers, forklifts, ovens, furnaces, production of polymers, Crop drying, paint and varnish.
Transportation : Car, taxis, buses, commercial vehicles etc.
Although in Bangladesh, the journey of LPG industry started in the late 70s, the growth of the LPG industry started in 2008. That year, when the government stopped providing new connections of natural gas to households and various industries, state-owned and several private companies started importing LPG to meet the growing demand for gas in the country’s residential and industrial sectors.
In Bangladesh, the last few years has witnessed a dramatic increase in LPG demand following a change of government policy supporting LPG use at the expense of natural gas. LPG is now preferred to natural gas in the residential, industrial and transport sectors. As a result, today the country’s LPG demand is around 1 million MT/year.
Bangladesh is now the fastest growing LPG market in the world (Ref: WLPGA Statistical Review of Global LPG 2020). It is predicted that Bangladesh may see LPG demand reach 2.5 million MT in 2025 and perhaps 3 million MT by 2030.