13 March 2023

LPG path to zero emissions across Australia

LPG is widely used in Australia by residential, commercial, recreational and industrial customers, particularly in regional and remote areas. Compared to alternative sources of fuel, particularly electricity and other liquid fuels, LPG has been an affordable and lower emitting energy source. As Australia’s economy transitions towards net zero emissions, it is clear that the LPG sector will need to change if it is to continue to play a role in meeting the energy needs of Australian households and businesses. In particular, with the increasing availability of high efficiency electrical appliances, and the expectation that electricity will increasingly be supplied from renewable sources, there are questions about the extent to which the LPG sector can compete with electricity on both emissions reductions and price.

Frontier Economics has been engaged by Gas Energy Australia (GEA) and the Australian Gas Industry Trust (AGIT) to undertake a study on the pathway for Australia’s LPG sector as the economy moves to net zero emissions. The report considers the pathway to zero for Australia’s LPG sector by outlining some of the key technological options by which the LPG sector can deliver low-emissions or zero-emissions gas to its customers and developing a potential transition path by which LPG can achieve zero-emissions by 2050.

Read the report synopsis and download the full report.