United Kingdom (UK) Liquefied Petroleum Gas (LPG) Market Overview, 2029

LPG (Liquefied Petroleum Gas) has been an important component of the UK's energy landscape since the mid-twentieth century, providing a clean and versatile fuel source for nearly 2 million off-grid houses, particularly in rural areas where natural gas infrastructure is limited. Its historical relevance emphasises its usefulness in satisfying the heating needs of varied demographics. In the United Kingdom, the LPG business uses a targeted marketing approach, focusing on certain consumer segments such as rural households and industrial customers rather than launching huge advertising campaigns. This strategy demonstrates a comprehensive grasp of customer preferences and market dynamics, with promotional efforts tailored to effectively reach and engage the intended audience segments. The Covid-19 epidemic had a mixed influence on the UK's LPG industry. While commercial demand for LPG declined due to economic upheavals and restrictions on business activity, household consumption increased significantly. As people spent more time at home during lockdowns and remote work arrangements, the demand for LPG for heating increased, demonstrating the resilience of certain market segments in the face of extraordinary circumstances. According to the research report “United Kingdom Liquefied Petroleum Gas (LPG) Market Overview, 2029," published by Bonafide Research, the United Kingdom Liquefied Petroleum Gas (LPG) market is projected to add more than USD 800 Million from 2024 to 2029. The UK Liquefied Petroleum Gas (LPG) market is currently undergoing a significant transformation, owing to a variety of trends and circumstances. Historically, domestic refineries were the dominant source of LPG supply; however, diminishing production owing to underinvestment and closures has resulted in an increasing reliance on imports. This move has revealed market weaknesses, especially during peak winter demand. Nonetheless, there are hopeful trends promoting LPG usage, such as an increased emphasis on cleaner-burning fuels across industries. Furthermore, new infrastructural investments attempt to improve supply security, perhaps alleviating some of the problems associated with import reliance. Despite these encouraging advances, the UK LPG sector still confronts a number of obstacles. The primary problem is the supply shortage caused by declining domestic production and a rising reliance on imports. This scenario is especially perilous during peak demand seasons, when supply constraints are most noticeable. Furthermore, infrastructure constraints, such as insufficient storage capacity, worsen supply issues, leading to possible shortages and logistical concerns. Furthermore, the unpredictability of LPG pricing, which is closely related to global oil prices, poses a huge difficulty for consumers, hurting affordability and budgeting.

LPG is utilised across various applications, including domestic, residential, commercial, agricultural, industrial, transportation, refinery, and chemical sectors. In domestic and residential settings, LPG serves as a versatile energy source for heating, cooking, and other household needs, while in commercial applications, it is commonly employed for heating and powering various equipment and appliances. Agriculture relies on LPG for activities such as crop drying, pest control, and greenhouse heating. In industrial settings, LPG finds extensive use in manufacturing processes, space heating, and as a fuel for machinery and equipment. The transportation sector utilises LPG as an alternative fuel for vehicles, offering a cleaner-burning option compared to traditional gasoline or diesel. Within refineries, LPG is produced as a byproduct of the refining process, extracted through techniques such as crude oil distillation, catalytic cracking, and hydrocracking. Additionally, LPG can be sourced from associated gas, which is natural gas co-extracted with crude oil, or from non-associated gas reserves, where it is found independently of crude oil. This diversity in sources ensures a steady supply of LPG for various applications, supporting its widespread use across different sectors while also offering flexibility and resilience in the face of changing market conditions and demands. In terms of policy and regulations, the UK LPG industry adheres to strict safety requirements set by the Health and Safety Executive (HSE). Compliance with certification criteria applies to all aspects of the LPG supply chain, including storage facilities, installation processes, and continuing maintenance protocols. These standards are critical to preserving the safety and integrity of the LPG infrastructure, which protects both consumers and industry stakeholders. LPG is a promising clean energy alternative within the UK's low-carbon policy, providing a cleaner option than traditional heating fuels such as coal. This trait distinguishes LPG as a key actor in the country's sustainability initiatives. Furthermore, there are numerous prospects for infrastructure expansion in the LPG industry, with investments in import terminals and storage facilities improving supply security while also contributing to the overall resilience of the energy infrastructure. This infrastructure development is consistent with the nation's goal of guaranteeing a dependable and sustainable energy supply. Furthermore, LPG's adaptability makes it suitable for use in a wide range of industrial applications. Agriculture, transportation, and off-grid power generation can all benefit greatly from LPG's versatility. Its application in various industries not only provides practical answers, but also helps to reduce emissions and promote environmental sustainability. Recent industry news highlights difficulties and potential in the UK LPG sector. Winter 2023 saw supply issues caused by diminishing domestic production, emphasising the significance of diversifying supply sources and improving infrastructural resilience. Furthermore, initiatives like Flogas' Teesside project in 2022 demonstrate efforts to improve supply security by maximising current resources. Furthermore, the growing emphasis on cleaner energy sources bodes well for the long-term prospects of the LPG industry, as it aligns with broader sustainability goals and drives demand for environmentally friendly alternatives. Historically, domestic refineries served as the backbone of LPG (liquefied petroleum gas) production, meeting the majority of demand. However, local production has steadily declined over time, resulting in a huge supply-demand disparity. Imports have been critical in closing this deficit, with Europe emerging as a crucial provider. This transition reflects the changing dynamics of the LPG industry, in which reliance on domestic production has declined and overseas trading has grown critical in supplying consumer demand. Across Europe, LPG penetration varies significantly depending on a variety of factors, including the quantity of natural gas infrastructure. Nations with large natural gas networks frequently see lower LPG use rates due to the availability and accessibility of alternative energy sources. Nonetheless, LPG remains important in many areas, notably for off-grid applications and industrial uses. These variances highlight the nuances of Europe's energy landscapes, which are impacted by a variety of socioeconomic and infrastructure factors. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Liquefied Petroleum Gas (LPG) market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Application • Domestic • Agriculture • Industrial • Transportation • Refinery • Chemical

By Source • Refinery • Associated Gas • Non-associated Gas The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Liquefied Petroleum Gas (LPG) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.