ARGUS: European Industry Re-Embraces LPG

More and more European companies are looking to take advantage of the benefits of propane-butane (LPG), according to analysts.

We present key highlights from an article published on August 1st by Argus – an independent media organisation providing information about global energy and commodity markets.

ARGUS: Европейската индустрия преоткрива възможностите на пропан-бутана

Many industrial energy consumers turned to LPG as an alternative fuel source last winter in response to deep concerns over supply security and soaring prices for natural gas. Even though there is already some calming down in the industry regarding natural gas sources, more and more European companies are regaining their trust in the advantages of LPG for industrial purposes.

Analysts predict that this trust will continue to grow. Businesses that have switched from natural gas to propane-butane and continue to use LPG are seeing long-term benefits from using the fuel. Germany’s industrial demand for LPG in 2022 grew by almost 30pc year on year, according to the national LPG association DVFG.

There was a sharp increase in orders for propane-air mixing systems that enable users to completely or partially replace natural gas, German LPG equipment manufacturer Flussiggas-Anlagen director Alexander Schneider says. Europe’s new LPG customers come from a mix of sectors, ranging from drinks firms and glass producers to metals plants and hygiene product manufacturers. Poland’s Luzyce glassworks says its December investment in replacing natural gas with LPG paid for itself within three months.

And fellow Polish firm ITGAS Inter Tech Gas, which specialises in industrial installations, points out that only LPG or synthetic natural gas “offer an automatic switch from natural gas to an alternative source without any changes to gas burners“.

Two of the plants of the German hygiene products manufacturer Hartmann-Rico switched to LPG before the end of the first quarter, and the third one is ready to transition from June. “Diversification had ethical and economic reasons“, board member Pavel Fuchs says. “We wanted to get rid of our dependency on Russian gas while ensuring a stable source of heat for our facilities.

Argus forecasts that the investment of companies that have switched to propane-butane will be returned no later than during the upcoming winter season.

Read the full analysis here.