AgendaAgenda
1. Who we are
2. Why LP Gas
3. Asian LP Gas markets
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3. Asian LP Gas markets
4. Conclusions
� The Unique Global Association representing the LP Gas Industry for 20 years
� More than 175 members operating in 90 countries in the world
� Representing the interests of the full LP Gas value chain from producer to distributor
� Partnering with key global organisations such as the ADB, UNFCCC and the WHO
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� Partnering with key global organisations such as the ADB, UNFCCC and the WHO
As the authoritative, global voice for LP Gas, the WLPGA promotes the use of LP
Gas worldwide to foster a cleaner, healthier and more prosperous world.
The WLPGA – Our Mission
� Demonstrate the benefits of LP Gas and position it as clean
energy
� Create the environment to develop and sustain LP Gas
markets
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To add value to the sector by driving premium demand for the product To add value to the sector by driving premium demand for the product
� Identify and stimulate innovation
� Promote compliance with good practices
� Facilitate and drive information exchange among all
stakeholders
Asian Development Bank Energy for All (E4 All)Asian Development Bank Energy for All (E4 All)
• 1 billion people in Asia and the Pacific region without access to modern energy
• E 4 All will:
— Promote decentralized energy systems for urban and rural communities
— New financing mechanisms for the poor such as Microfinance schemes
• E4 All has set a target of providing access to modern energy services for 100
million people in the region by 2015
• E4 LPG: WLPGA is leading a working group on LP Gas as part of the E4 All
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• E4 LPG: WLPGA is leading a working group on LP Gas as part of the E4 All
initiative
– Working group formed in Timor Leste
– Formation of a working group on island developing states
– Interventions in Bangladesh, India, China, Papua New Guinea
Why LP Gas is the right fuel for AsiaWhy LP Gas is the right fuel for Asia
LP Gas is propane or butane or a mixture of the two. It is always present as a product of oil refining and also is always present naturally in natural gas (methane) fields and crude oil fields.
It can be distributed in relatively cheap, small containers and used for cooking, heating, lighting and commercial/industrial activities.
LP Gas has significant health, safety and environmental benefits compared to traditional solid fuels, such as wood/biomass and coal, or other refined fuels such as kerosene or paraffin.
Neither Propane nor Butane is on the IPCC list of Greenhouse Gases. Methane is.
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Because it’s portable:
• Bottles can be can be stored indefinitely
• Easily transported
LP Gas is LP Gas is accessible
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• Easily transported
• Used virtually anywhere -- from urban centres to
remote regions
When and where costly, grid-based energy services are unavailable
• …Because it’s a clean fuel:
• It burns cleanly
• No smoke or residual particulate matter
• Relatively low pollutant emissions
• Low Green House Gas (GHG’s)
LP Gas is an LP Gas is an AcceptableAcceptable alternativealternative
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• Low Green House Gas (GHG’s)
emissions
• Helps fight deforestation by substituting
“traditional fuels”
• Frees women and girls from drudgery of
searching for firewood
LP Gas LP Gas has a has a low GHG footprintlow GHG footprint
200
250
300
KG
CO
2 E
qu
ivila
nt p
er m
illio
n B
TU
Coal
LP Gas is NOT a zero – GHG fuel: However in most cases it can
make major and immediate contributions to real emission reductions
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0
50
100
150
Natura
l Gas
LPGEth
anol(E
85)
Motor G
asolin
eKer
osen
eDies
elHea
vy fu
el oil
Bitum
inou
s Coal
Electri
city f
rom
Coal
KG
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TU
CoalElectricity : 3.5LP Gas: 1
LP Gas LP Gas reduces reduces indoor air pollutionindoor air pollution
According to the landmark 2006 WHO study “Fuel
For Life, Household Energy and Health”
• … smoke from indoor cooking fires kills 1.6 million every year, more
more people than malaria, and almost as many as unsafe water and
sanitation
•
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• … smoke in the home is the fourth greatest cause of death and
disease in the world’s poorest countries
• WHO have highlighted LP Gas as the cost effective solution for
reducing pollution from cooking fuel
Investing US $ 13 billion per year to halve, by 2015, the number of people worldwide cooking with solid fuels by providing them with access to LP Gas shows a payback of US $ 91 billion per year.
When the LP Gas cylinder comes into kitchensWhen the LP Gas cylinder comes into kitchens
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LP Gas cylinder arrived in kitchens. Before and after.
LP Gas allows for LP Gas allows for incremental developmentincremental development
Stage 3: LP Gas bulk tank,
fuelling stove, refrigerator, water
boiler and generator
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Stage 1: LP Gas cylinder inside
feeding stove
Stage 2: LP Gas cylinder outside,
piped in to fuel stove, refrigerator
and light
A word about global supplyA word about global supplyLP Gas Supply, Million TonsLP Gas Supply, Million Tons
Latin America
Europe
Africa
Other
200
250
300
350
400 • LP Gas Production is Rising in Nearly Every Region of the World. Global Prod (2007) is 230 MM Tons
• Supply is expanding rapidly – a 60 million ton increase expected between 2006 and 2015
NOTE: 1.0 Million Tons per Year is NOTE: 1.0 Million Tons per Year is
Approximately 32,000 BPD.Approximately 32,000 BPD.
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North America
Middle East
Asia
Latin America
0
50
100
150
200
1990 1995 2000 2005 2010 2015 2020 2025
• The Middle East will Surpass North America Around 2010 to Become the Largest Producing Region
• Supply Growth will be Very Strong in the Middle East– with LP Gas Production Expanding by Over 60% Between 2007 and 2015
Source: Source: Purvin & GertzPurvin & Gertz
Far Far EastEast (8(8))
JapanJapanChinaChinaTaiwanTaiwanSouth KoreaSouth KoreaNorth KoreaNorth KoreaHong KongHong KongMacauMacauMongoliaMongolia
Regions and nations of AsiaRegions and nations of Asia
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Southeast Asia Southeast Asia (10)(10)
BruneiBruneiCambodiaCambodiaIndonesiaIndonesiaLaosLaosMalaysiaMalaysiaMyanmar (formerly Burma)Myanmar (formerly Burma)PhilippinesPhilippinesSingaporeSingaporeThailandThailandVietnamVietnam
IndianIndianSubSub--Continent Continent (7)(7)
IndiaIndiaPakistanPakistanBangladeshBangladeshSri LankaSri LankaNepalNepalBhutanBhutanAfghanistanAfghanistan
Asia Population
45.0%
Asia
Rest of World
3.05 Billion3.05 Billion 3.72 Billion3.72 Billion
15.5%42.0%
Far East
Indian Sub-Continent
Southeast Asia
1.58 Billion1.58 Billion
1.57 Billion1.57 Billion577.3 Million577.3 Million
55.0%42.4%
• At 3.72 billion people, Asia represents 55% of the world population
• Indian Sub-Continent has a slightly larger population than the Far East, with about
14.8 million more people.
• Indian Sub-Continent accounts for 42.4% of Asian population with 1.58 billion people,
Far East 42.0% with 1.57 billion and Southeast Asia 15.5% with 577.3 million
Source: Source: Purvin & GertzPurvin & Gertz
2008 Per Capita LP Gas Consumption by Region
16.7
31.7
30
40Kilograms per CapitaKilograms per Capita
8.0
16.7
0
10
20
Far East Southeast Asia Indian Sub-Continent
Source: Source: Purvin & GertzPurvin & Gertz
2008 Per Capita LP Gas Consumption
179.6
141.5
97.6
66.3
63.1
51.8
48.514.6China
Other Far EastMalaysiaThailand
SingaporeTaiwanJapan
Republic of KoreaKilograms per CapitaKilograms per Capita
14.6
10.1
10.1
9.9
7.3
5.4
4.3
1.3
0 20 40 60 80 100 120 140 160 180 200
Other Indian SubConPakistan
Other SE AsiaIndonesia
IndiaPhilippines
VietnamChina
Source: Source: Purvin & GertzPurvin & Gertz
Demand vs. Total Population
100
120
140
160
180
200
800
1000
1200
1400
kg/capita
Population
Millions of ResidentsMillions of ResidentsKilograms per CapitaKilograms per Capita
The 5 largest Asian The 5 largest Asian countries by populationcountries by populationare among the lowest are among the lowest
kg/capita consumers of kg/capita consumers of LP LP GasGas
0
20
40
60
80
100
Brunei
Mac
auBhuta
nM
ongolia
Singa
poreLa
os
Hong Kong
Cambodia
Sri L
anka
Taiw
an
Nort
h Kore
aM
alay
siaN
epal
Afghan
ista
n
South
Kore
aM
yanm
arTh
aila
ndVie
tnam
Philippin
esJa
pan
Bangl
adesh
Pakist
anIn
donesia
India
China
0
200
400
600
GasGas
Source: Source: Purvin & GertzPurvin & Gertz
Quick overview of market developments
• Chinese LP Gas demand has rebounded from disappointing 2008
• Demand potential remains very high for several Asian countries
• Petrochemical LP Gas demand has jumped in Asia
• Great potential in Southeast Asia market
– Indonesia could become a huge importer
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– Indonesia could become a huge importer
– Vietnam market has great growth potential
– Thailand’s market is a wildcard, tied to retail price levels and subsides
• Kerosene-to-LP Gas conversion program remains underway
– Expected to improve, leading to a very large Asian market, dependent on LP Gas imports
Conclusions
• LP Gas supply is increasing in supply
• LP Gas is an ideal fuel for a rapidly changing and urbanizing Asia
as it is clean, low carbon, acceptable and accessible and requires
minimal investments in infrastructure or R & D.
• Strong endorsement of LP Gas has been received from key global
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authorities
• Innovative applications for LP Gas can be found in both the
developed and developing world
• The World LP Gas Association is ready to assist
23rd World LP Gas Forum
29 September – 1 October 2010
And finally…And finally…And finally…And finally…
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Madrid
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