EU rules mount for Europe's LPG sector

Spanish Market: Biofuels, LPG
20/10/26

Early and concerted engagement with lawmakers may be key to more favourable policy decisions, writes Matt Scotland

European LPG distributors face a growing burden of EU regulation from carbon border charges on imported steel cylinders to rules affecting transport fuels and heating markets, delegates heard at Liquid Gas Week in Istanbul over 12-16 October.

But a recent success story demonstrated the value of early engagement with policy makers, the audience heard. Under the EU's Packaging and Packaging Waste Regulation (PPWR), which took effect this year, LPG cylinders remained classified as packaging, meaning strict limits on lead content could have applied to cylinder valves. Brass valves typically contain around 2.2pc lead, around 220 times the regulatory threshold, European LPG association Liquid Gas Europe's sustainability manager, John Taylor, said. The industry argued that the regulation conflicted with existing dangerous goods rules governing valve materials, and the European Commission ultimately agreed that existing valves could continue to be used.

The decision avoided a substantial cost, given around 16mn-25mn cylinder valves are replaced each year in Europe, and even a €1 ($1.1) increase would have added €16mn-25mn annually to industry expenses, Taylor said. "If you're not at the table and you're not engaged, then what will happen is you'll have to react," he said.

A further challenge comes from the EU's Carbon Border Adjustment Mechanism (CBAM), which will apply to imported steel products, including LPG cylinders. Companies importing more than 50 t/yr of steel products must collect emissions data from suppliers, with importers required to begin purchasing CBAM certificates from February 2027.

The European industry is also fighting a broader policy battle over the role of liquid fuels in Europe's energy transition. Liquid Gas Europe estimates that around 7mn households, 700,000 businesses and more than 8.5mn vehicles in Europe rely on LPG. But policy makers increasingly frame the debate as one of electrification versus molecules, particularly as the EU moves toward its 2035 ban on sales of new internal combustion-engine vehicles.

The association is campaigning for a 35-40pc renewable liquid gas mandate in heating under the Renewable Energy Directive, arguing that long-term policy certainty is essential to support investment in renewable LPG.

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20/10/26

Forest, agri residues could play growing role in SAF

London, 20 October (Argus) — Forest and agricultural residues, as well as intermediate crops, could be transformed into sustainable aviation fuel (SAF), but competition for organic feedstock across various renewable fuel sectors is also growing, delegates heard at the Argus Biofuels Conference in London today. SAF producers are targeting technologies that can process multiple materials and biomass residues could provide hundreds of millions, if not billions, of tonnes of feedstock, UK-based technology firm Nova Pangaea chief commercial officer Jonathan Wood said. That said, building supply chains to aggregate, move and process that biomass efficiently remains a challenge, he added. Biofuel manufacturers typically look to secure long-term feedstock agreements, ideally with regional suppliers, to save on logistics, Switzerland-based aviation fuel supplier iFuel director Grazvydas Bajoras said. And competition for feedstock by makers of renewable diesel, marine fuels and other industries is heating up, delegates said. SAF producers may struggle to secure sustainable and traceable feedstocks at competitive prices, and compete against SAF imported from Asia with different cost structures, Bajoras said. Supplies of waste oils and fats — currently the most common SAF feedstocks — may not grow as quickly as demand for aviation fuel, so the market may also need output from alternative technologies to reduce long-term dependence on a limited type of raw material, Bajoras said. Nova Pangaea has preliminarily agreed to build a forestry biomass-fed ethanol production plant to supply domestic producer NorSAF's planned 100,000 t/yr SAF project at Latvia's Liepaja port and has completed endurance trials at its wood waste-derived SAF demonstration plant in Teesside, northeast England. But the firm does not exclude expanding its feedstock consumption to agricultural biomass in the longer term, it told Argus . By Marta Imarisio Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

LPG World editorial: Stocks for future shocks

20/10/26

LPG World editorial: Stocks for future shocks

The need for energy resilience and flexible fuels in more volatile times provides the LPG industry with a huge opportunity London, 20 October (Argus) — The IEA's proposal for a global LPG reserve mechanism could create the strongest case yet for expanding storage infrastructure worldwide. IEA executive director Fatih Birol and Turkish energy minister Alparslan Bayraktar told delegates at the World Liquid Gas Association's (WLGA) Liquid Gas Week in Istanbul on 14 October that LPG needs to be at the centre of the global energy security conversation. The agency is working with governments and the industry on developing an LPG security mechanism, and could unveil a new policy paper at the next summit on clean cooking in Africa in Nairobi , Kenya, on 27-28 January. For an industry that has long made the case of LPG's value as a clean and easily transportable fuel for cooking in the developing world, backed by a global supply chain, this high-level emphasis on the need for protection from supply shocks amid the Iran war signifies how far LPG has come under the clean cooking movement. The world is "facing the largest energy security threat in history... with more than one-third of LPG trade passing through the strait of Hormuz, mainly to Asia", Birol said. Noting more than half of all LPG is used in homes for cooking and heating, he added: "The current energy crisis is directly affecting the heart of daily life." Energy security is also a matter of national security, Bayraktar told the audience. "We cannot afford to depend on a single energy resource, a single supplier," he added, nor on any one technology or transport route. That "is precisely why LPG deserves greater attention". LPG "is sometimes a little bit overshadowed by its big brothers, natural gas and oil, but its contribution to energy security should not be underestimated", Bayraktar added. "With its flexibility, portability and accessibility, LPG provides an important alternative for millions of consumers, particularly in times of supply disruptions." Turkey has a large LPG market, as the world's second-largest autogas consumer. This means that industry must seek to "strengthen supply chain resilience through diversified sources, reliable infrastructure and stronger international co-operation", he said — something an emergency reserve scheme could help deliver. The need for compact and portable energy such as LPG is increasing despite the electrification drive, Turkish distributor Aygaz's chief executive Melih Poyraz said. "LPG is needed to keep energy flowing when other systems fail," he said. The need for energy resilience and flexible fuels in more volatile times provides the LPG industry with a huge opportunity, distributor DCC chief executive and WLGA president Donal Murphy said. But this opportunity requires substantial investment — in tanks, terminals and caverns. Japan as a key LPG importer has proven it is possible, with emergency reserves of around 2.5mn t , or 90 days worth of imports. India has possibly been the worst affected by the Mideast Gulf war given its limited reserves, prompting the government to ask state-run refiners to build at least 30 days of stockpiles . India is planning to build more storage capacity, while Rwanda and Vietnam are increasing strategic stocks. An IEA framework would give investors the confidence to back new storage projects. Supply is not a concern, with millions more tonnes of LPG expected to flow from the US, as well as more from the Middle East, Argentina and Canada. The easiest solution Greater storage capacity and emergency reserves will be essential to the expansion of clean cooking across Africa. LPG is "the easiest solution today" for Africa's clean cooking transition, Birol said, and the infrastructure developed under a reserve scheme would help bring LPG to millions more homes in the region. The clearest signal from the conference was that governments, the IEA and industry are now pulling in the same direction when it comes to LPG supply resilience. What matters now is whether the money follows. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Q&A: IEA's Birol on LPG's role in African clean cooking

20/10/26

Q&A: IEA's Birol on LPG's role in African clean cooking

London, 20 October (Argus) — Since the IEA's first summit on clean cooking in Africa in Paris in 2024, governments, development banks, NGOs and the private sector have stepped up efforts to expand access to modern cooking fuels across sub-Saharan Africa, where energy poverty remains most acute. LPG is still the most practical alternative to the harmful fuels used by close to 1bn people in the region, and the IEA has become one of its most prominent advocates despite its fossil-fuel status. Argus' Waldemar Jaszczyk spoke with IEA executive director Fatih Birol in the run-up to Liquid Gas Week in Istanbul this month about progress so far and the challenges ahead: What key developments have been made since the first summit in Paris? For almost 25 years, I have tried to raise this issue. Every year, we publish the World Energy Outlook and highlight how many people lack access to clean cooking, country by country. After trying to push it almost alone, I was very happy to see growing interest. Based on my discussions with different government leaders, we organised the first IEA summit with great success. We had more than 1,200 delegates and almost 10 heads of state. Together, we raised pledges worth $2.2bn. At the end of the meeting, I told government leaders around the world, as well as delegates and the press, that we would track this $2.2bn. About $740mn of this has now been deployed, or one-third. We have a list of projects across Africa, that are mainly LPG — terminals in Kenya and Tanzania, new stove manufacturing in Nigeria and stove deployment in Senegal. The summit was the first such meeting in history. But there are two other events that I want to draw attention to. The most recent was during the UN General Assembly , when a dedicated clean cooking session took place for the first time. I co-chaired it with Kenyan president [William] Ruto. We had many ministers, including US energy secretary Chris Wright. The third event will be in Nairobi in January. I understand there is huge interest from governments and companies in attending. It will be organised by Kenya, Norway and the IEA. I have received a lot of support from the World Bank. Its president Ajay Banga was in New York, and he will also be coming to Kenya. I will also chair the World Economic Forum in Davos a few days before our second summit in Nairobi. I am going to include, again for the first time, a session dedicated to clean cooking and LPG. The World Bank suggested a bold proposal would be forthcoming in Nairobi. Can you give any more information on it? We are in discussions with the World Bank on what would be most helpful. Pledges from governments, the private sector and oil and gas companies are definitely important. But a well-designed bond scheme from the World Bank would be helpful. In my view, the small IEA, with its limited means, has spent the past 25 years raising this key developmental issue in international forums. I think the World Bank should have done so much earlier, as its key objective is development in emerging countries. In my view, the World Bank has, until now, failed to address this issue. So I am very happy that it is now joining forces with us. We are working very closely with the World Bank, the African Development Bank and others. We hope to reach an agreement and make an announcement in Nairobi this year on the bond scheme. Do you think this scheme would be a game-changer for financing clean cooking? I think it has real potential, but it is still early days. The key question is how effectively the model can be scaled and translated into investments on the ground. Our analysis shows that closing the clean cooking access gap in Africa by 2040 would require around $2bn/yr in up-front investment. The IEA works with a wide range of companies across Africa that are helping expand clean cooking access and could benefit from this type of financing. We are exchanging with the World Bank to help identify the right partners and ensure that the capital mobilised supports the investments needed on the ground. What progress has been made in connecting Africa's clean cooking transition to carbon markets? Carbon markets are already an important part of the financing model for many clean-cooking developers in Africa. By our accounting, carbon credits represent one in every eight dollars flowing into Africa's clean cooking sector. But concerns about the integrity of some projects and the application of certain methodologies have shaken market confidence, and contributed to a credits oversupply, putting downward pressure on prices. Rebuilding trust is therefore essential. There is encouraging work under way, including the application of the Integrity Council for the Voluntary Carbon Market's Core Carbon Principles and the development of more robust methodologies under the Paris Agreement Crediting Mechanism. How has the Iran war impacted clean cooking transitions to LPG? When people look at prices, they look at the crude price, but nobody uses crude directly. People use LPG, diesel and other products. LPG is used mainly in developing countries and by lower-income groups, so there was a major problem. We are seeing many developing countries face serious challenges and shortages as prices remain very high. At least 30 significant LPG-consuming countries have less than 15 days of storage left. We already have an oil security mechanism under which we release stocks when there is a market disruption. We are now developing a clean cooking security programme to help countries establish fuel security and emergency response frameworks, and expand strategic and commercial storage capacity. If I had to identify those most vulnerable to the effects of this Iran war, I would say LPG users in the developing world, especially in Africa and Asia. How will the security programme work in practice? The programme is focused on making clean cooking markets and supply chains more resilient. In practice, the programme will bring together governments, companies and civil society to identify and advance priority actions. These could include strengthening domestic policies, investing in critical infrastructure and improving international co-ordination to diversify supply and manage disruptions. The IEA brings significant expertise in energy security and policy design. We can work with governments to assess their local energy systems, identify vulnerabilities and develop practical policy approaches to address them. What role does the LPG industry play in expanding access? Clean cooking is, in my view, the biggest injustice among global energy issues. It can also be solved relatively easily, without discovering new technology or requiring huge investment or financing. When we consider the solutions, which is the easiest and most cost-effective? Our country-by-country, fuel-by-fuel analysis shows that LPG is the number one answer. Our analysis also shows that, among people who gained access to clean cooking in the past 15 years, about three-quarters did so through LPG and one-quarter through other sources. India made a major achievement through the PMUY programme. Prime Minister Narendra Modi once told me that our contribution to this programme helped him win elections in India, thanks to votes from women whose lives changed when they gained access to LPG. I therefore see LPG as the primary response to the clean cooking challenge we face. That is why I thought it would be important for the IEA and the WLGA to join forces to organise the meeting in Istanbul. I know LPG has many uses, but focusing on clean cooking has two advantages for business leaders. First, it is a huge market. Second, it may be good for reputation to be seen as an enabler in addressing one of the biggest injustices in the world. Are we still on track to reach universal access in Africa by 2040 in spite of the current challenges? The crisis has certainly created headwinds and real hardship for many households. But political momentum behind clean cooking is continuing to grow, and the number of people gaining access each year is expected to increase. Unfortunately, progress remains too slow and is concentrated in a handful of countries that have made clean cooking a priority and attracted the investment needed. If countries were to accelerate towards the best rates of progress already demonstrated, Africa could close its clean cooking access gap by 2040. Universal access is achievable, but it requires a step change in action. What matters between now and 2030 is laying the foundations to make that possible. For me, success by 2030 means that governments, the private sector and civil society are all taking concrete steps to accelerate progress. Through our summit in January in Nairobi, the IEA is working to bring these actors together, strengthen commitments and turn growing political momentum into the policies, investment and action needed to put Africa on a path to universal clean cooking access. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Turkey's 'resilient' autogas market faces EV challenge

20/10/26

Turkey's 'resilient' autogas market faces EV challenge

After decades of investment and support, the world's largest autogas fleet faces stiff competition from electrification, writes Yasmin Zaman London, 20 October (Argus) — The Turkish autogas sector is one of the world's largest and most resilient autogas markets thanks to its substantial vehicle fleet, robust regulations and extensive refuelling and vehicle conversion infrastructure, delegates heard at Liquid Gas Week in Istanbul this month. But the rapid growth of electric vehicle (EV) sales is emerging as a significant long-term challenge for the sector. Autogas is likely to retain its significant share of the Turkish car transport sector for many years, even as EV sales increase, industry representatives told the conference held by the World Liquid Gas Association over 12-16 October. Turkey has around 5.3mn autogas vehicles on the road, they said, the largest fleet in the world — its demand of 3.3mn t in 2025 was second only to Russia's 3.5mn t, Argus data show. The market's strength stems from the foundations laid in 1996, when the industry focused from the outset on positioning autogas as a branded, reliable fuel rather than a commodity, helping to build trust among motorists, Ipragaz's chief executive Eyup Aratay said. Initial demand came largely from taxi operators seeking lower-cost fuel, but adoption accelerated after 2000 as more consumers embraced LPG conversions. This growth has continued even through periods of economic turbulence and even during the Covid-19 pandemic, delegates heard, although the market is now entering maturity after decades of expansion. Strong regulations and ensuring product quality were key contributors to the market's longevity, speakers said. Maintaining strict standards for autogas quality continues to be essential to preserving consumer confidence, Milangaz's LPG operations director Can Toydemir said. Imported LPG must meet domestic specifications before entering storage terminals, ensuring compatibility with the country's autogas distribution network and vehicle fleet. Turkey has also developed a comprehensive regulatory framework for vehicle conversions to autogas. Certified workshops carry out conversions, while installed systems are subject to technical standards and periodic inspections designed to ensure continued safety and reliability. This combination of quality controls and assurances has helped address concerns about the safety of LPG-powered vehicles and supported wider adoption across the country, industry executives said. Against the current A continuing advantage for the sector is the ability to convert existing gasoline vehicles during the country's present economic headwinds and rising gasoline and new vehicle prices. But despite the sector's strong foundations, industry participants acknowledged that EVs are becoming an increasingly significant competitor. These account for around 30pc of vehicle sales in Turkey today, according to Toydemir, as more supporting infrastructure is rolled out. But Toydemir remains optimistic for the outlook of Turkish autogas given the vehicle fleet should continue to grow in the coming years and more vehicles are converted. Approximately 70pc of vehicles in Turkey can potentially be converted to autogas, he said. Gasoline vehicle conversions are likely to sustain Turkish autogas demand in the medium term, slowing the impact of rising EV adoption, the industry experts said. Over the longer term, the benefits of affordability, and robust regulation and safety standards that helped establish LPG as a mainstream road fuel will increasingly face stiffer competition from electrification. For now, the country's large LPG vehicle fleet, mature conversion network and established regulatory framework will provide a strong foundation for demand. But as EV adoption accelerates, the long-term trajectory of Turkey's autogas market will hinge on whether LPG can maintain its economic advantage in an evolving transport landscape while continuing to attract new vehicle conversions of an ageing gasoline fleet. Top 10 autogas markets Demand mn t Fleet mn Retail sites '000 Russia 3.5 3.1 4.7 Turkey 3.3 4.9 10.1 South Korea 2.5 1.8 1.9 Algeria 1.9 1.1 1.4 Kazakhstan 1.8 0.7 3.1 Poland 1.8 3.2 7.3 Italy 1.6 2.9 4.6 Mexico 1.4 0.4 2.3 Thailand 1.0 0.8 1.7 Ukraine 1.0 1.6 2.8 — Statistical Review of Global LPG Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

EU lawmakers eye e-fuels, biofuels beyond 2035

20/10/26

EU lawmakers eye e-fuels, biofuels beyond 2035

Brussels, 20 October (Argus) — The EU should create a new category of vehicles powered by eligible zero-carbon fuels from 2030, under an informal deal agreed by the European Parliament's largest political groups. The proposals, which would allow certain new biofuel-powered vehicles in addition to e-fuel vehicles, seeks to amend the bloc's existing CO2 standards for cars. If enacted, the agreement would define eligible fuels until the end of 2032 as all fuels covered by the renewable energy directive that achieve at least 65pc greenhouse gas (GHG) savings. From 2033, eligible fuels for new cars would be limited to renewable fuels of non-biological origin (RFNBOs), along with biofuels and biogas produced from advanced and waste feedstocks listed in Annex IX Parts A and B of the renewable energy directive. Current EU legislation sets fleet-wide CO2 emissions targets for new passenger cars and vans at 93.6g/km through 2029, equivalent to a 15pc reduction from the 2021 baseline for cars. The European Commission has proposed replacing the current 100pc reduction target from 2035, effectively requiring 0g/km emissions, with a 90pc reduction target. "The phase-out of the internal combustion engine is now off the table," said Manfred Weber, chair of Parliament's largest group, the European People's Party (EPP). "At the same time, we remain committed to combining effective and ambitious climate protection with a competitive industry," Weber added. The EPP, together with Renew and the Socialists and Democrats (S&D) want GHG emissions from new cars cut by 87.5pc from 2035. Under the proposal, 7.5 percentage points of the reduction would come from green steel, while 5 percentage points would be unconditional. The deal also foresees 3 percentage points of reductions from low-carbon steel produced in Europe, rising to 7 percentage points from 2035. The agreement between lawmakers follows German-French proposals to retain a 90pc reduction target for CO2 emissions from new cars from 2035, while creating a new vehicle category powered by RFNBOs or EU-produced sustainable biofuels and biogas derived from advanced feedstocks, waste and residues. German Green MEP Michael Bloss criticised the lawmakers' proposal for treating crop-based biofuel-powered cars as climate-neutral until 2032. "Even after 2035, one in eight new cars will still be allowed to have a combustion engine, with a large proportion of these offset against green steel, which already counts towards emissions trading targets," Bloss said. European renewable ethanol association ePure said the proposed two-year eligibility period for vehicles running exclusively on sustainable biofuels amounts to little more than "window dressing". "It is far too short to provide the investment certainty needed or to justify the significant logistical adjustments required throughout the value chain," ePure secretary-general Laurent Donceel said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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