Chinese growth pushes Asia's LPG demand past North America

March 19, 2003
Demand for LPG in Asia has in the last year finally overtaken that in North America in a trend that has been evident since 1990.

Warren R. True
Chief Technology Editor—Pipelines/Gas Processing

HOUSTON, Mar. 19 -- Demand for LPG in Asia has in the last year finally overtaken that in North America in a trend that has been evident since 1990. Similarly, LPG demand in Latin America has overtaken demand in Western Europe.

These were the major events noted by S. Craig Whitley of Purvin & Gertz Inc., Houston, in remarks today that opened the firm's 16th Annual US/International LPG Seminar here.

The other trend Whitley noted for the 12-year period—and on which the consultant has been reporting for some time—has been the nearly tripling of LPG demand in the Middle East. The region's burgeoning petrochemical industry has been driving this trend.

LPG demand in Asia reached about 55 million tonnes in 2002, compared with about 30 million tonnes in the region for 1990 and about 53 million tonnes in 2002 for North America. And this trend will continue through 2005, said Whitley, with Asian demand growing to about 65 million tonnes/year, while North American demand will barely reach 60 million tonnes/year.

The trend has been almost entirely driven by demand growth in China whose demand in 2002 was about 14 million tonnes, up from about 2 million tonnes in 1990. By 2005, Purvin & Gertz predicts Chinese LPG demand will reach 16-18 million tonnes/year and make up about 40% of all Asian demand.

Historically, LPG demand in Japan has dominated the region, but by 2005, said Whitley, demand in the two countries will be roughly equal, as Japanese demand has remained flat at about 18 million tonnes/year since 1990.

Contact Warren R. True at [email protected].