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LPG World editorial: Clean cooking’s watershed moment?

  • : LPG
  • 24/05/16

African clean cooking schemes could prove to be an early energy transition success story now that world leaders view them as environmental imperatives

The $2.2bn in funding pledged for clean cooking programmes in Africa over the next five years, announced at the IEA's Clean Cooking Summit in Paris on 14 May, could be a "turning point", according to the agency's executive director Fatih Birol. Not only would this be true in terms of tackling what is a long-neglected problem. It is also true for the LPG industry, which has been extolling the benefits of a transition to LPG in sub-Saharan Africa for many years.

Other than the dozen or so individual financial commitments made by governments and organisations, what resonated most from the event was just how achievable transitioning sub-Saharan Africa to cleaner fuels such as LPG actually is. Often the immediate reaction is to balk at the challenges — the lack of infrastructure, the lack of regulatory frameworks, the corruption, the cost of the LPG and equipment. Yet this was when it was looked at purely through the prism of the market. Now it is an environmental and social imperative.

Many of the political leaders from Europe, Africa and the US that spoke noted that greenhouse emissions from cooking were comparable to the airline and shipping sectors, yet tackling the former is far less complex, less expensive and receives scant recognition in comparison with the latter two. "We can fix it now… it is not high-tech, it is low-tech," Norway's prime minister Jonas Gahr Store told delegates.

Another often ignored part of the issue is how disproportionately women are affected by cooking with harmful solid biomass fuels — perhaps an underlying factor behind the many years of neglect at a national and international level. This is a gender issue, both Birol and Tanzania's first female president, Samia Suluhu Hassan, noted. The obvious health and social benefits from the transition to clean cooking will be most keenly felt by women and their children, who are at home breathing in the smoke from open fires. Several of the speakers, including African Development Bank president Akinwumi Adesina and World Health Organisation director-general Tedros Ghebreyesus, even spoke of their own experience of growing up in a household with open fires, and the consequent unnecessary suffering their mothers in particular had to endure.

LPG is not the only solution here — others mentioned included electric cookers, biogas, bioethanol and cleaner cooking stoves. And as a fossil fuel, it will ultimately be replaced at some stage by renewable alternatives. But it is the best solution right now for large parts of the region. "LPG is the most efficient in terms of its benefits and its ease of use," Togo's president Faure Gnassingbe said. LPG markets can develop in the region through subsidies and LPG price regulation to moderate volatility, while countries must also invest in domestic LPG production as well as import and distribution infrastructure, he said. Each country will be different, but it is "well within our reach", Gnassingbe added.

From pledge to realisation

The sub-Saharan African region and the LPG industry must now work with foreign governments, financial institutions and private-sector companies to ensure that the large sums pledged are invested in a pragmatic and fruitful way. The IEA will come back in a year's time to report on the progress of the various commitments made at the summit and will provide updates online in an effort to ensure progress and transparency, Birol said.

There is reason for cautious hope. The feasibility of achieving the transition and the relatively low levels of foreign investment involved — and the huge opportunities for LPG companies that will emerge — could create the conditions for success of a kind that has so far eluded many other such ambitions. It would be a huge boon for the world to have one such success story to point to by 2030 in its long, hard struggle to transition to a cleaner energy future.


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25/06/24

LPG prices plunge on possible Israel-Iran ceasefire

LPG prices plunge on possible Israel-Iran ceasefire

London, 24 June (Argus) — Global LPG prices fell by around 6pc today after Israel and Iran appeared to agree a ceasefire. An end to the 12-day conflict would alleviate fears of supply disruptions, and LPG prices started to retreat after rising on Monday, 23 June . The Asia Pacific Argus Far East Index (AFEI) July paper contract fell by $34.50/t to $555.50/t, and the equivalent European propane paper value fell by $33/t to $477/t. Swap contracts, with liquidity far greater than physical trading, can be a useful indicator of global sentiment. The prompt contract, currently July, can move rapidly and accurately reflect the trajectory of physical price moves. Some market participants are skeptical on the durability of the truce . Iran has yet to confirm its agreement. The hostilities have endangered Iranian infrastructure, ports, terminals and facilities that could affect LPG output. There was also an implied threat from Tehran of closure of the strait of Hormuz. Either scenario would severely affect output from the region. Iran exports about 10mn t/yr of LPG, most of it to China, and 40mn t/yr passes through the strait of Hormuz, equivalent to 27pc of global seaborne exports. Any disruption to Middle East flows would force China, the biggest LPG buyer, to seek more product from the biggest seller, the US. This would leave less product for European buyers and would necessitate higher European price premiums to compete with Asia-Pacific buyers, which typically offer better netbacks to US sellers. By Efcharis Sgourou Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Gas carriers pool on both sides of Hormuz


25/06/20
25/06/20

Gas carriers pool on both sides of Hormuz

London, 20 June (Argus) — The number of gas carriers idling on both sides of the strait of Hormuz has grown in recent days as operational risks mount with continued geopolitical tensions in the Mideast Gulf. Kpler shipping data show that seven gas carriers halted today, joining a pool of 23 vessels now idling near UAE and Oman, south of the strait. Of the total, 13 began idling on or after 13 June, when the first reported strikes on Iran occurred. The pool includes nine very large gas carriers (VLGCs), six medium gas carriers (MGCs) and eight smaller vessels. At least 11 of the 23 gas carriers have been previously linked to Iranian trade, Kpler data show. Some of the vessels have probably halted as a result of the increased operational risks in the Mideast Gulf, although several were idle before the start of the conflict and may be so for other operational reasons. A second pool of halted vessels has formed inside the Mideast Gulf, where six VLGCs, all with history of assumed Iran trade, have stopped since the airstrikes began. At least two vessels — Pyra and Gas Endurance — stopped after making U-turns shortly after the conflict escalated, Kpler ship tracking data show. Assumed Iranian LPG shipments consisted of 47 vessels in the first quarter of 2025, according to Kpler. Current disruptions could significantly impact this flow, especially to China as it has increased its reliance on Mideast Gulf cargoes following trade tensions with the US. Shipments via the strait of Hormuz — Iranian and from other Mideast Gulf producers — corresponded to 60pc of China's LPG imports so far in the second quarter, Kpler data show, up from 40pc in the previous quarter, as Chinese buyers sought to replace US product. Despite the vessel buildup, gas carriers continue to transit the strait. Chartering activity in the Mideast Gulf rebounded on 19 June following the release of Saudi Aramco's July loading acceptances. An Indian charterer moved quickly and secured vessels at rates nearing $90/t on a Ras Tanura to Chiba basis, a sharp rise from the $76/t on 13 June before the start of the current conflict. Volatility is likely to persist as some vessels remain unwilling to operate in the area, which could further support freight rates on limited competition. But this could be offset if high time charter equivalent (TCE) revenues — now significantly elevated due to the risk premium — lure more shipowners back into the region. By Yohanna Pinheiro Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Keyera acquiring Plains' Canada NGL assets for $3.75bn


25/06/17
25/06/17

Keyera acquiring Plains' Canada NGL assets for $3.75bn

Houston, 17 June (Argus) — Midstream operator Keyera will acquire Plains All American's Canadian natural gas liquids (NGLs) business for C$5.15bn ($3.75bn). The transaction, which is expected to close by the first quarter of 2026, includes 193,000 b/d of fractionation capacity in western Canada, more than 1,500 miles of pipelines gathering 575,000 b/d of NGLs, 23mn bl in NGL storage capacity, and the 5.7 Bcf/d Empress straddle gas processing plant. The acquisition is expected to deliver C$100mn of annual synergies between the assets in the first year, according to Keyera. Plains said the divestiture will allow the US-based midstream operator to focus on its crude handling assets in both the US and Canada. Plains will keep nearly all of its NGL assets in the US. The acquisition of Plains' assets gives Keyera NGL fractionators and gas processing plants in Fort Saskatchewan, and at the Empress facility in western Canada as well as storage at Sarnia, Ontario. It also links Keyera's existing assets to takeaway agreements for LPG exports out of British Columbia. Keyera chief executive Dean Setoguchi said the acquisition "... brings key infrastructure under Canadian ownership, keeping value and decision-making closer to home." Plain's Canadian business is underpinned by fee-based contracts with an average remaining life of 10 years, Keyera said. Associated NGL production in Canada is expected to grow by 500,000 b/d by 2040, according to Keyera, as natural gas production in western Canada climbs by 6 Bcf/d during the same timeframe. By Amy Strahan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US ethane exports slump as China flows blocked


25/06/17
25/06/17

US ethane exports slump as China flows blocked

The EIA has revised down its forecast for US ethane exports following the introduction of licensing requirements, writes Amy Strahan Houston, 17 June (Argus) — US exports of ethane fell to a nearly five-year low in early June following the US Department of Commerce's restrictions on shipments to China , but market participants expect the trade dispute to be short-lived. The department's Bureau of Industry and Security (BIS) sent a letter to midstream firm Enterprise Products in late May requiring it as the operator of the 240,000 b/d (5mn t/yr) Morgan's Point ethane terminal in Texas to obtain a licence for future shipments to China citing possible military uses for ethane and butane. The US' largest ethane exporter, Energy Transfer, which operates the 180,000 b/d Nederland ethane terminal, then received a similar notice on 3 June. Enterprise's request for emergency authorisation to ship three ethane cargoes totalling 2.2mn bl (177,000t) was subsequently denied, sending ethane prices at the Mont Belvieu hub in Texas to a six-month low of 19.25¢/USG ($142/t) on 5 June. Around 198,000 b/d of US ethane loaded during the week to 26 May, after Enterprise received its letter, down from 410,000 b/d a week earlier and 547,000 b/d in the same week of 2024, Kpler data show. They are forecast to stand at 218,000 b/d over the week to 9 June. Ethane prices at Mont Belvieu had recovered to levels seen before the trade restriction by 10 June, owing in part to seasonal gains in Gulf coast natural gas prices but also because market participants expect disruptions to cargo loadings to be temporary, with the US and China holding trade talks in London this month. Very large ethane carriers (VLEC) that deliver ethane to China were on standby by mid-June. The Pacific Ineos Grenadier , which loaded ethane from Morgan's Point while Enterprise appealed against the BIS measure, has been moored at the company's nearby Houston terminal since 9 June. Satellite's Seri Erlang remains offshore Energy Transfer's Nederland facility, while its STL Qianji ang , which loaded at Nederland in the first week of June, is now heading to India. Another Satellite vessel, STL Yangtze , discharged in India in early June, possibly owing to maintenance at Satellite's cracker in Lianyungang , China, and is now returning to Nederland, according to Kpler. "We are all hoping the policy will be reversed soon," one market participant says, while another adds that it is likely to be resolved in days and not weeks. Restricted view US government agency the EIA has nevertheless attempted to forecast the impact the restriction would have on US ethane exports, revising down its forecast by 51pc to 310,000 b/d (6.4mn t/yr) for 2026. US ethane export capacity is on track to grow to as much as 900,000 b/d by the end of next year following the opening of new projects, including Enterprise's new 360,000 b/d Neches River ethane and propane terminal near Beaumont, Texas, and expansions at Morgan's Point and Energy Transfer's Marcus Hook terminals. Chinese buyers of US ethane are also hopeful of a relatively swift resolution owing to the mercurial trade policy of the Donald Trump administration. If it is not forthcoming, they may look to switch feedslates to LPG and naphtha when possible in the shorter term, and those that have invested in new VLEC fleets could repurpose them to LPG or ethylene in the longer term. Neither would be an attractive proposition given the substantial levels of investment in new ethane-fed cracking and VLEC capacity, but would ensure that domestic downstream derivative plants are kept running. Chinese companies are unlikely to begin importing ethylene instead given the margins would still be uncompetitive compared with cracking alternative feedstocks. In any event, buyers "do not want to make a big decision they will regret", one market participant says. Mont Belvieu ethane price Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Q&A: Suburban's renewable quest continues


25/06/17
25/06/17

Q&A: Suburban's renewable quest continues

London, 17 June (Argus) — US LPG distributor Suburban Propane was the first company to sell a propane-renewable DME (rDME) blend in California in 2022 . The company has also pioneered sales of biopropane in the US and has since expanded into renewable natural gas (RNG) — also called biomethane — and hydrogen. Argus spoke with Suburban's vice-president of renewable energy, Douglas Dagan, about the push into renewables and the challenges ahead: Could you provide an update on Suburban's renewable DME sales? We continue to have a strategic partnership with Oberon Fuels , which produces rDME in the US. We are the only commercial seller of a propane-rDME blend — right now we sell to all of our forklift truck and autogas customers from our Anaheim, California, location. The product is a true drop-in replacement that can be used in all propane applications. The blend ratio is currently small, but we are testing higher percentages to determine the maximum drop-in blend level. We received an exemption from the California Air Resources Board [CARB] to run a pilot testing higher blend levels in vehicles. What is the current blend ratio and what is the maximum you are looking at? Our commercial blend is 4pc rDME. This ensures no issues as a drop-in replacement. We want to get to a 10pc maximum, but we've done a lot of testing and are delivering at 4pc in the Anaheim market. We are confident there are no issues on the customer side when a 4pc blend is used in an engine. Now we're looking to assess higher blend percentages. Getting CARB pilot approval was the first step. Why has the maximum fallen from previous estimates of 20pc and then 12pc? RDME has a lot of potential, but it's more challenging than anticipated. We started testing before the World Liquid Gas Association [WLGA] did. The belief was you could blend up to 20pc and everything would work. It turns out it's more like 10pc — lower than hoped — which means environmental benefits don't scale as fast. You have to ensure no issues arise from the oxygen content in DME, such as seal degradation causing leaks. There must be a high degree of confidence. On the supply side, different blend ratios require dedicated tanks and infrastructure — you can't switch between 4pc and 20pc easily — so it's very costly to have more than one blend. What are the latest in terms of your renewable propane sales? We are rapidly scaling — we've sold over 1mn USG [1,900t] of renewable propane in California, where we primarily offer renewable propane. Several programmes support renewable propane, but California credits are the most lucrative. We will sell outside California and are exploring expansion. The biggest challenge is availability. Many producers don't yet see value in separating renewable propane from the stream — it's a by-product, from renewable diesel or sustainable aviation fuel (SAF) production. We're building relationships to say: we have demand, and we'll pay. We just need more of it. How does Donald Trump's presidency and the resulting pressures on the regulatory environment for the energy transition affect Suburban's renewable plans? I think the Trump administration is supportive of what we're doing. It has different priorities from the Biden administration, but we still see support at both state and federal levels for our traditional product. On the renewable side, we're developing drop-in renewable propane, as well as RNG and clean hydrogen. There's support for all three. A Trump priority is domestic industry, and our plans are heavily domestic. Every administration brings new challenges. Lack of certainty is the biggest — knowing future policies is hard. Luckily we have a traditional product and a renewable platform that have support from both parties and we think the outlook for the future is good regardless of which party is in control. Can you explain why the carbon intensity (CI) metric could be an important tool for policy makers? It's a critical metric, though a bit technical. Policy makers deal with many issues — energy is just one. But the more people understand CI, the better the decisions. The CI scale, developed by Argonne National Lab, is a full life-cycle emissions calculation, covering production and use. Electric vehicles [EVs] are often seen as cleanest, but not always. CI reveals this — the lower the better. For example, if the electricity grid is dirtier than gasoline, switching to EVs worsens emissions. In most US states, the grid is dirtier than traditional propane. Gasoline and diesel score about 100, traditional propane around 80, and renewable propane 20-40. Suburban is moving into hydrogen and RNG. Is this a diversification strategy or do they somehow complement the core LPG business? We have a large RNG facility in Arizona using dairy manure and co-feed from organic waste. We can produce 1,000–1,500mn Btu/d of RNG sent via pipeline to California for engine fuel. Its CI score is a little better than minus 350 — phenomenally clean. We're building a new facility in upstate New York, and upgrading one in Columbus, Ohio, that uses food and organic waste. We're also evaluating other RNG opportunities. But we're also growing our LPG business. RNG is a great product — and part of a strategic platform. Digesters make biogas, which becomes RNG. But raw biogas can also be used to make rDME and renewable propane. And RNG can make clean hydrogen — or rDME/renewable propane that can be transported and reformed into clean hydrogen on site. These are all interconnected. Will the company retain its core focus as a propane supplier? Yes. Propane is a unique energy source that will remain critical. Many customers are in areas where large-scale grid decarbonisation isn't feasible, so propane as distributed energy is vital. [And] more extreme weather events take down grids. Propane is resilient — useful for heating, cooking and generating electrons to power EVs where the grid can't meet demand. If emergency EVs run on electricity and the grid fails, you need another way to generate electrons. [So, propane has a lasting role.] Have Suburban's traditional propane sales been pressured by warmer winters? Winter 2024–25 was much colder than the record-warm winter a year earlier, which had lowered demand. This winter, heating demand climbed and sales increased. But our strategy doesn't rely on cold weather. We're growing non-weather-related demand via traditional and renewable platforms — especially for engines and back-up power. Our goal is to grow both platforms and deploy capital for the greatest returns. What are your hopes for the rest of this year for the renewables business? We plan to keep growing RNG production. Output is rising at our Stanfield [Arizona] facility and the other two mentioned. We're also exploring hydrogen opportunities and expect that segment to grow. For renewable propane and DME, we've seen tremendous recent growth — especially in renewable propane. We're pursuing more supply and new markets outside California. Reaching 1mn USG in sales was a big milestone — and we want to keep building on that this year. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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