LPG Cylinder Refilling Plant. LP Gas Industry. How to Start a Liquefied Petroleum Gas Filling Project
LPG – Liquefied Petroleum Gas – describes flammable hydrocarbon gases including propane, butane and mixtures of these gases.
LPG, liquefied through pressurization, comes from natural gas processing and oil refining. LPG is used as heating, cooking and auto fuel. The term is widely used to describe two prominent members of a family of light hydrocarbons called “Natural Gas Liquids” (NGLs): propane (C3H8) and butane (C4H10).
The term “liquefied gas” may seem a contradiction in terms since all things in nature are either a liquid or a solid or a gas. Yet, liquidity is the unique character of LPG that makes it such a popular and widely used fuel. At normal temperature and pressure, LPG is gaseous. It changes to a liquid when subjected to modest pressure or cooling. In liquid form the tank pressure is about twice the pressure in a normal truck tyre, which means it is very safe when properly handled. LPG is a derivative of two large energy industries: the processing of natural gas liquids and the refining of crude oil.
The major sources of commercial LPG are natural gas processing and petroleum refining. Raw natural gas often contains excess propane and butanes which must be removed to prevent their condensation in high-pressure pipelines. In petroleum refining, LPG is collected during distillation, from lighter compounds dissolved in the crude oil, as well as generated in the “cracking” of heavy hydrocarbons. Therefore, LPG can be considered a by-product and its exact composition and properties will vary greatly with the source.
LPG Cylinder Refilling or Bottling Plant
LPG bottling or refilling plant is a plant where LPG is filled into bottles (cylinders) for storage and distribution among various LPG distributors. The plant has the facility to receive bulk LPG by Tank trucks (of various capacities e.g. 12MT, 17MT etc.) or pipeline from a reliable source e.g. Refinery or any other LPG Bottling Plant.
Uses of LPG:
LPG can be used in many applications in the industrial sector namely in space- and process-heating, powering industrial ovens, production of food, kilns, furnaces, production of packing material as well as in powering forklift trucks in warehouses.
- The top most use of LPG is to use as the main fuel for vehicles. It burns better than diesel or petrol and hence, the top most use for LPG is to use it as ignition fuel. It is also more energy efficient and is said to leave lesser damaging impact on the atmosphere and the environment.
- LPG is also popularly used as a refrigerant. Since butane and propane are both considered to be energy efficient, LPG serves as a great hydrocarbon.
- LPG is also used as a chemical feedstock.
- Apart from being used as a motor fuel, it is also a great fuel used for other purposes.
- LPG is also used for agricultural purposes in drying processes.
- As a great industrial fuel, LPG is also used in solution heating processes.
- The other main use of LPG is as domestic fuel or what we know as cooking fuel. LPG gas is a combination of propane and butane. Even these individual components have many domestic uses. Like propane is used in portable stoves as well as barbeques and butane is used in deodorants and even gas lighters used to light gas ovens in the kitchens and even cigarettes.
- LPG is also used in centralized heating solutions both for domestic as well as industrial premises.
- The paper industry as well as the food processing industry is also one of the top most industries which rely heavily on LPG. It has also a major role in the plastic industry and is even used in making explosives.
- LPG is also used to produce electrical energy by running turbines.
- Compared to petrol, running the vehicle engine on LPG results in around a 10% increase in consumption.
- A very important advantage of LP Gas as a fuel is the cost of itself.
- It has a higher heating value, allowing you to heat your home at a lower price.
- LPG is easy to transport
- Due to higher octane rating, the combustion of LPG is smoother and knocking is eliminated and the engine runs smoothly.
- When LPG leaks past the rings into the crankcase, it does not wash oil from cylinder walls and does not generate black carbon. Hence, the lubricating layer is not washed away. Thereby, the engine life is increased by 50%.
- Due to the absence of carbon deposits on the electrodes of the spark plugs, the life of the spark plugs is increased.
- Using LPG is very easy as it can be utilized without the need for significant infrastructural changes and technological requirements.
- LPG offers energy solutions that are extremely economical.
- LPG cannot be tampered with and hence its purity is maintained.
- LPG generates the minimum greenhouse gas discharge out of all the existing fossil fuels. It comprises really less quantity of Nitrogen, Sulphur, and other particulate substances that are detrimental to the atmosphere. Research states that cooking with LPG actually helps in bringing down the greenhouse emission by up to 70 percent.
The global liquefied petroleum gas (LPG) market is highly competitive, featuring a large number of equally balanced competitors. The top five companies accounted for 17.2% of the global market in 2013.
Owing to their higher energy content and ability to burn easily as compared to other fuels, LPG, also known as autogas, is used as fuel in automobiles. The numerous environmental benefits of using autogas is another factor driving its demand. This is because autogas is considered to be greener as compared to other fuels such as gasoline and diesel. Autogas also enjoys legislative policy support and is cost-effective, thus driving its adoption.
LPG is widely used as cooking fuel in residential sectors. The ease in transportation through pipelines, tankers, and cylinders results in the low cost distribution of LPG cylinders. Moreover, the low CO2 emission from LPG makes it one of the best fuels in the cooking sector. LPG is extensively used in the rural sector. The Indonesian government launched a conversion program and distributed LPG cylinders and gas stoves to the rural population. Similarly, the Indian government has also come up with initiatives, supporting the low cost distribution of LPG cylinders to rural sectors. All these factors contribute to the heightened demand for LPG.
By end use, the residential and commercial segment led in 2013, accounting for a 63.25% of the global LPG market. The segment is expected to continue its lead in the market in the coming years. By geography, the Middle East and Africa is expected to lead in the global LPG market, followed by Asia Pacific. By source, the non-associated gas segment is expected to witness the highest growth rate in the coming years.
Global Liquefied Petroleum Gas (LPG) market is expected to experience significant growth. The growing demand for LPG in residential and commercial sectors in developing nations has increased the demand for liquefied petroleum gas (LPG) market. Several initiatives taken by the government in the developing nations like Indonesia, China, and India to substitute traditional cooking fuels such as coal, wood, and kerosene with liquefied petroleum gas (LPG) will fuel market growth in the upcoming years. Governments across the world are promoting LPG as auto emission gas because it emits lesser quantities of carbon-dioxide gas into the air causing less pollution. In addition, rapid urbanization and growing demands of consumers in developing nations are promoting the demand for real estate, infrastructure, cars, electronic devices, and other goods followed by consumption of energy resources. The demand for LPG will continue to rise followed by its consumption particularly in the developing countries where the transportation industry is undergoing rapid growth and development.
Liquefied Petroleum Gas (LPG) Market Revenue by Source, 2014 – 2024, (USD Million)
Liquefied petroleum gas (LPG) is a flammable mixture of various hydrocarbons, and majorly consists of propane and butane. LPG gas is colorless and odorless; and emits less quantity of CO2 when compared to petrol or diesel. Thus, LPG is extensively used as a cooking fuel, both in commercial and residential setups throughout the country. Application of LPG in the industrial sector is also increasing, owing to growing use of LPG as a feedstock in petrochemical plants in the country. Moreover, rising demand from transport segment and increasing consumption of LPG to produce various chemical components such as propylene, ethylene, butadiene, etc., is further anticipated to boost demand for LPG in the country in the coming years. Furthermore, increasing prices of naphtha, rising LPG imports and expanding distribution network are anticipated to fuel consumption of LPG in India during FY17-FY26.
LPG consumption in India is forecast to surpass 35 MMT by FY26. North region dominated India LPG market over the past few years, and is further forecast to continue dominating the market through FY26. North region comprises several LPG bottling plants, oil refineries and petrochemical plants.
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A rapid increase in urban population combined with increasing LPG penetration in rural areas has resulted in a 10% growth in LPG consumption, making India the second largest LPG consumer in the World at 19 million tonne per year. Based on Government’s continued efforts to promote clean fuel and increased adoption by consumers, LPG consumption is expected to see a sustained double-digit growth in the years to come.
Few Indian major players are as under:
- Adani Dhamra L P G Terminal Pvt. Ltd.
- Aegis Gas (LPG) Pvt. Ltd.
- Aegis Logistics Ltd.
- Alert Petrogas Ltd.
- Asia LPG Pvt. Ltd.
- Balaji Pressure Vessels Pvt. Ltd.
Niir Project Consultancy Services
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106-E, Kamla Nagar, Opp. Spark Mall,
New Delhi-110007, India.
Tel: +91-11-23843955, 23845654, 23845886, 8800733955
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