Supply

LPG can play a key role in securing the long term energy security of many countries and the recent development in natural gas exploration have led to a substantial increase in the supply of LPG to the global markets. The LPG supply chain is flexible and dencentralized, and has a plurality of origins

LPG combines inherent efficiency with widespread availability, a flexible transit and distribution model, and robust long-term supply prospects.

With its dual origins – gas drawn directly from the earth, and refined crude oil – LPG’s supply is not contingent on the availability of any one source. Moreover, thanks to the existence of a highly fluid international trading market, Europe’s LPG imports are geographically diversified.

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One of the major developments associated with the US shale revolution and that has attracted little attention.

As new form of gas exploration are developed, such as hydraulic fracturing, ‘wet’ natural gas wells will also produce propane and butane which will further ensure the long term supply security of LPG. The most striking example being the United States that has gone from LPG importer to exporter thanks to shale gas wells.