We publish key points from an interview with the World LPG Association (WLPGA) with the CEO of Liquid Gas Europe – Eva Abramjuk-Lete.
WLPGA: After a challenging 2021, what do you see as the key opportunities for the European propane-butane market in 2022 and beyond?
Eva Abramjuk-Lete: The ambitious goal of achieving climate neutrality in the European Union by 2050 creates both challenges and opportunities for the propane-butane sector. On the one hand, according to the International Energy Agency’s Net Zero Scenario for 2050, a change in final energy consumption in general and electricity consumption in particular is expected, with growth continuing until 2050. At the same time, we will see a smooth transition to bio propane-butane (bioLPG) in Europe.
Thanks to the cost-effectiveness and flexibility of propane-butane, the European automotive sector is recovering in several European countries compared to the previous year. As was recently announced by ACEA (the European Association of Manufacturers of Automobiles), the market for propane-butane vehicles has increased by 5.7% during the last quarter of 2021. According to France Gaz Liquides sales of cars powered by propane-butane in 2021 have increased by 180%, while sales of propane-butane have increased by 40%. The main reasons for the transition to vehicles powered by propane-butane are a56> the availability of fuel, as well as the benefits for the environment and the environment.
WLPGA: How has the propane-butane market in Europe responded to the COVID-19 pandemic?
Restaurant managers are always looking for the optimal solution for their business—one that can save resources without compromising quality. Using LPG reduces the use of electricity for heating, which leads to lower utility bills. Eva Abramyuk-Lete: In 2020 and 2021, the COVID-19 pandemic caused unprecedented disruption to economies and societies around the world, and the energy sector was not immune to the shocks caused by the health crisis. The movement restrictions imposed to prevent the spread of the virus had a severe impact, as the sharp decline in transport use led to a collapse in demand for gasoline and diesel. Although there has been a slight decline in propane-butane consumption in Europe, its advantages make it more sustainable than other fuels. Restaurant managers are always looking for the best solution for their business—one that can save resources without compromising quality. The use of LPG reduces the consumption of electricity for heating, which leads to lower utility bills.
WLPGA: What are the main threats to the industry in Europe and how can they be overcome?
Eva Abramjuk-Lete: The current ambitious policies and regulations aim to decarbonize three key sectors: transport, heating, and industry. These proposals suggest a certain path that European countries are paving. However, new opportunities for increasing the use of propane-butane in the maritime sector and in heavy-duty vehicles can be identified.
WLPGA: What are the areas the industry should focus on to expand the LPG market in Europe?
Eva Abramjuk-Lete: We must ensure that LPG and bioLPG are available and reliable energy sources in the future. To this end, more investment is needed in research and development, and production must be increased. On the one hand, more commercially viable ways of producing bioLPG will have to be developed. This will require a strong commitment from producers. At the same time, the legislative framework must encourage these investments and support the energy transition.
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