Romania Runs LPG With Over 10% More Per Year
The environmental legislation in Europe, the growth of many of Eastern Europe's LPG markets, and the expansion of the natural gas network, have all presented operators with unparalleled opportunities.
- (1888PressRelease) June 28, 2011 - In Romania, the LPG market, including the cylinders, the auto gas and the propane bulk, is situated around 440.000 tonnes annually. If in 2009 the cylinders took almost half of the LPG market, in 2010 the auto gas dominated the market with about 45% from the entire market, growing with over 10% comparative with 2009.
In 2010 there were traded almost 200.000 auto gas tonnes from about 1.200 LPG auto skids existing in Romania (according to the Romanian Association of LPG). The growing was first of all determined by the price of auto gas, situated at half of the price of the gasoline.
Romania seems to enter the European trend concerning the LPG situation, fuel that is intensely promoted as viable alternative for the traditional fuels, both directly by the legislative rules, and by the auto vehicles producers who deliver cars already provided with LPG installations from the factory.
In neighboring countries as well, the LPG sector is growing. Although Serbia remains an import oriented market, the share of big market players in retail motor fuel LPG business increased. Since 2007 for all kind of LPG activities (wholesale trading, storage, retail Sale etc.) there is needed "Energy license" issued by state authority-Agency for energy. The minimum required LPG storage capacity in one depot is 1000 m3, but the condition is for a min. 3000 m3 storage capacity for "Energy license" for LPG trading and production activity. If in 2009, 78% of LPG consumption was through motor fuel mixture (35% Propane, 65% Butane), in 2010 there was almost the same level of consumption (320.000 tones). The motor fuel LPG represents 78 % of LPG consumption in Serbia. There are about 500,000 cars (25 % of 2 000,000 total cars) with LPG installations and more than 650 motor fuel LPG stations. In the last couple of years companies like OMV, EKO HELLENIC, MOL, LUKOIL, MB Gas, EUROGAS established their own network.
In Bulgaria the auto gas represents about 90% from the entire LPG market. The retail chains such as Lukoil, OMV, Shell, Eko, Petrol, Rompetrol represent more than 60% of the auto gas market and a share of about 40% is represented by independent from retail sites. Autogas is very popular with commercial users in Bulgaria, as 90% of minibuses and taxicabs were able to run on the fuel.
With the expansion of the LPG use and beyond the decisive aspect of its use, namely reducing the cost of fuel, the operation and safety measures in the auto LPG skid sites will also expand and diversify, so that the new equipment is not endangered. The market trend also reflects upon the suppliers of equipment dedicated to LPG industry.
"It is clear that the consumption of LPG in the coming years will grow. Therefore it is important for providers to expand supply, but at the same time to provide services safely away from the risk of gas leaks or explosions that could occur when the systems are not inspected or properly used.", says Ion Andronache, the CEO of the Romanian company Syscom18, a national leader on the process control and automation market, company that provides fiscal metering systems for LPG applications.
The extensive applications of LPG in the local market leads to growth among the local suppliers of equipment needed for the implementation of the projects or for the control of the systems and facilities. "Over the last five years, I found a real increase on the local LPG market, reflected in new orders placed. One of the last projects we've completed was the warehouse automation system at ButanGas, one of the largest LPG distributor in Europe.", says Ion Andronache.
About the role that the LPG plays in the automotive sector and beyond, the industry leaders and policy makers in Europe and the world will debate at the Annual Congress of the European LPG Association to be held this year in Bucharest, between 22 and 24 June.
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