Rapid Access to Modern Energy Services Using Lp Gas

Abstract

Modern energy is not universally available. An estimated two billion people in the world do not yet have access to modern fuels and around one quarter of all energy consumed in developing countries is derived from the burning of wood, charcoal, crop residues and animal dung. Yet a modern energy carrier exists that can meet the thermal energy needs of many of these people from both developing and developed countries. This energy carrier is available now, at low marginal cost. It can rapidly provide a critical step up on the energy ladder from traditional fuels to modern fuels whilst accelerating the socio-economic development of urban and rural regions in a sustainable manner. This modern energy carrier is LP Gas. LP Gas (Liquefied Petroleum Gas) is a by-product of natural gas production and / or crude oil refining. With an annual demand of approximately 250 million tonnes of oil equivalent, LP Gas consumption is now equivalent to approximately 10% of global natural gas consumption. Due to its versatile characteristics, LP Gas has found uses in many applications from being a thermal fuel in domestic applications to being essential in industrial and agricultural uses. LP Gas is now also the world's most popular alternative automotive fuel. Energy demand generally increases with population growth but in many developing countries, the rate of population growth far exceeds the rate of modern energy provision with a result that energy poverty in developing countries is extremely high. Lack of modern energy prevents the socio-economic development necessary to allow communities to move up the energy ladder from traditional fuels to fuels that can support and stimulate a greater level of economic activities. LP Gas is the ideal transition fuel to modern energy carriers such as natural gas. Access can be achieved at relatively low marginal cost through a well-developed global LP Gas industry. Barriers to LP Gas use can often be overcome through effective government policies. The case for government support to the LP Gas sector is based on the positive contribution the fuel can make to sustainable development. Experience from several countries shows that active government support can catalyse the development of the LP Gas market and lead to a virtuous circle of growing market potential, increased investment and expanded availability. LP Gas is available now. There is nothing exotic to invent or improve. The transportation system that moves it is in place and the tanks that store it are available today.