More and more European companies want to take advantage of the benefits of propane-butane (LPG), analysts say
We present the main points from an article published on August 1 this year by Argus – an international independent media organization providing information on global energy markets.
Last winter, many industrial energy consumers turned to propane-butane as an alternative fuel source due to concerns about security of supply and the surge in natural gas prices. Although the industry has now calmed down somewhat regarding natural gas sources, more and more European companies are regaining confidence in the advantages of LPG for industrial purposes. Analysts predict that this confidence will continue to grow.
Businesses that have replaced natural gas with propane-butane and continue to use LPG see long-term benefits from using the fuel. Industrial demand for propane-butane in Germany in 2022 grew by almost 30% compared to the previous year, according to the national LPG association DVFG.
Alexander Schneider, director of German LPG equipment manufacturer Flussiggas-Anlagen, notes that there has also been a sharp increase in orders for propane-air mixing systems, which allow consumers to completely or partially replace natural gas.
New propane-butane customers in Europe come from a variety of sectors, ranging from beverage companies, glass and hygiene product manufacturers to metallurgical plants. The Polish company Luzyce, for example, reports that their investment in December to replace natural gas with propane-butane paid for itself in just three months.
Another Polish company, ITGAS Inter Tech Gas, which specializes in industrial installations, points out that only propane-butane or synthetic natural gas “offer automatic switching from natural gas to an alternative source without any changes to the gas burners.”
Two of the factories belonging to German hygiene product manufacturer Hartmann-Rico switched to LPG before the end of the first quarter, and the third is ready to switch to the environmentally friendly fuel in June. “Diversification has ethical and economic reasons,” says Hartmann-Rico board member Pavel Fuchs. “We wanted to get rid of our dependence on Russian gas and at the same time secure a stable source of heat for our power plants.”
Argus predicts that the investment of companies that have switched to propane-butane will pay off no later than during the upcoming winter season.
Read the full analysis here.