VietNamNet Bridge – Demand for Liquefied Petroleum Gas (LPG) is set to rise significantly as its versatility is exploited further the world over, experts said at a three-day conference that ends in HCM City today, July 5.

A view of the Dinh Co Gas Processing Plant in southern Ba Ria-Vung Tau Province. Demand for Liquefied Petroleum Gas (LPG) is set to rise in the Asia-Pacific region due to the versatility and efficiency of the resource.

The Asia Pacific region, including Viet Nam, was the fastest growing market for LPG, also known as cooking gas, but the country lacked the infrastructure and distribution network to take full advantage of this growth, they said.

More than 200 delegates from many countries in Asia attended the Asian LP Gas Summit 2013, which sought to discuss solutions to utilise LPG in ways that are beneficial to the users, economy and the environment.

The participants shared common experiences and sought ways to overcome challenges and transfer competencies that would optimise use of the precious resource.

David Tyler, director of the World LP Gas Association (WLPGA), said the Asia Pacific region is the fastest growing market for LPG.

"About one third of LPG used in the world is used in Asia, with nearly 90 million tonnes consumed every year," he said.

The global market in terms of LPG volume was estimated at nearly 260 million tonnes in 2011.

The major factors driving the LPG market were: clean and efficient source of fuel; growing demand from the automobile industry; and global usage of LPG as cooking fuel.

Tyler said LPG is mainly used as a cooking fuel, especially in Asia, and nearly one-third is used in the chemical and refinery industries, he said.

Tyler saw Viet Nam as having a huge potential for LPG growth, especially as cooking fuel.

"We have a new programme called ‘Cooking for Life,' under which we are working very closely with global organisations to promote the use of LPGas in cooking all over the world, particularly in Asia."

The five-year WLGA global campaign seeks to reduce death and illness by encouraging people to move away from traditional cooking fuels to LPG, he said.

It will promote increasing LPG use especially in developing markets, targeting one billion users by 2030, he added.

Viet Nam's potential

Nguyen Si Thang, chairman of the Viet Nam Gas Association, said, "LPG demand in Viet Nam is expected to continue increasing in the coming years, and reach about 2 million metric tonnes by 2017."

LPG use in the country is currently 1.5 million metric tonnes a year.

Currently, the country produces about 600,000 metric tonnes of LPG a year, meeting about 40 per cent of domestic consumption demand.

Despite more refineries that are expected to come into operation in the coming years, local production will still fall short of demand, he said.

"Domestic LPG production is forecast to make up about 35-40 per cent of local demand in the 2018-20 period," he said, adding, "the country has to import the rest to satisfy local consumption needs.

"The country has to import about 1 million metric tonne a year from now to 2020, more than 2 million metric tonnes a year by 2025 and about 3 million metric tonnes a year by 2030."

Thang said that in the coming years, Viet Nam will continue to use LPG as domestic and industrial fuel and try to meet the demand of petrochemical complexes and light industries.

It will also enhance the use of LPG for transportation purposes, gradually replacing gasoline in big cities.

"To meet consumption demand, the country will also invest more in technical infrastructure including large-scale LPG terminals to increase storage capacity," he said.

Ngo Anh Hien, deputy head of PetroVietnam's gas devision, said Viet Nam plans to strengthen its gas infrastructure in northern and central regions, build an inter-regional pipeline system and construct several gas processing plants.

The sector will focus on processing and increasing gas value, developing and diversifying the gas market and gradually integrate into regional and international markets.

Vo Van Quyen, general director of the Ministry of Industry and Trade's Domestic Market Department, said the LPG market has developed strongly in Viet Nam over the past years, but it is still a very small-sized market with many shortcomings.

He urged local firms to make more efforts to develop the domestic LPG market.

He said the summit has been a good platform for local and foreign players to exchange information and set up business co-operation deals to develop the LPG market in Asia in general and Viet Nam in particular.

An LPG exhibition featuring latest technologies and products was held alongside the regional conference.

Source: VNS