Overview: In recent years, China has shown strong growth momentum in the field of natural gas exploration and development, sparing no effort to increase the search for new gas fields, which has not only significantly increased the country's natural gas reserves and recoverable reserves, but also built a solid resource foundation for large-scale production of liquefied natural gas (LNG). Against the backdrop of the global energy structure transitioning to a cleaner and low-carbon direction, and driven by the sustained and steady development of China's economy, the demand for clean energy has shown a blowout growth trend. From January to August 2024, China's LNG production reached 15.427 million tons, a year-on-year increase of 21.11%.
Keywords: the status quo of the liquefied petroleum gas industry, the key enterprises of liquefied petroleum gas, and the production of liquefied petroleum gas
1. Industry overview
Liquefied Petroleum Gas (LPG) refers to petroleum gas that can be liquefied or stored and transported in the liquid phase at the right ambient temperature and pressure. It is mainly derived from the by-product gas of various processing units in the petroleum processing process, and some of it is also derived from natural gas (including oilfield associated gas). LPG is mainly composed of hydrocarbons such as propane, propylene, butane, butene, etc., and contains a small amount of pentane, pentene and trace sulfur compound impurities. Liquefied petroleum gas has a wide range of applications, mainly including chemical raw materials, fuels, non-ferrous metal smelting, kiln roasting, automobile fuels, etc.
Second, the development process of the industry
The development of China's liquefied petroleum gas (LPG) industry has mainly gone through four stages, the initial development stage from the 60s to the 80s of the 20th century, during which China was in the initial stage of industrialization and the energy demand gradually increased. In 1965, China's first LPG bottling plant was completed and put into operation in the western suburbs of Beijing, marking the official start of China's LPG industry. At this stage, LPG is mainly used in civil fields, such as home cooking and heating, and gradually replaces traditional fuels such as coal and wood.
During the period of rapid growth from the 90s of the 20th century to the beginning of the 21st century, with the deepening of reform and opening up and the rapid growth of the economy, China's demand for energy increased sharply. The production capacity of LPG has increased rapidly, the operating rate of refineries has remained at a high level, and the output of liquefied gas has increased steadily. At the same time, the application field of LPG is gradually expanding, not only in the civilian field, but also in the commercial and industrial fields. With the gradual formation of LPG wholesale and retail networks, the market supply system has been gradually improved.
From the beginning of the 21st century to the 2010s, China's economy continued to maintain rapid growth after entering the 21st century, and its energy structure was also continuously optimized. The deep processing technology of LPG continues to improve, and the LPG deep processing capacity has increased, and LPG has gradually become an important chemical raw material. At the same time, the application of LPG in the transportation field has begun to rise, and the number of liquefied petroleum gas vehicles (LPGV) is gradually increasing.
In the stage of high-quality development since the 2010s, in recent years, China's economic development has entered a new normal, focusing on high-quality development and ecological civilization construction. The LPG industry has accelerated its transformation and upgrading, paying more attention to safety, environmental protection and efficiency. With the advancement of urbanization and rural revitalization strategies, the consumption of LPG civil gas has remained basically stable, but the demand for industrial and chemical raw materials has continued to grow. At the same time, in terms of policy, we will continue to increase support and supervision for the LPG industry, and promote the development of the industry in the direction of standardization and standardization.
Third, the industry chain
The upstream of the liquefied petroleum gas (LPG) industry chain mainly includes exploration equipment, drilling equipment, logging equipment, completion equipment, oil testing and gas production equipment, liquefied petroleum gas compressors, oil and gas gathering and transportation equipment, etc. The midstream of the industrial chain is mainly liquefied petroleum gas producers. The downstream of the industrial chain mainly includes the distribution and end-use of LPG. Downstream gas companies purchase LPG from midstream producers and supply it to end users, including residential, commercial, and industrial users, through urban pipelines or distribution networks.
Note: This article is excerpted from the "Research and Judgment 2024! Analysis of the industrial chain, industry status and key enterprises of China's liquefied petroleum gas (LPG) industry: deepening processing transformation and leading the new trend of chemical raw materials [Figure]", if you want to get all the content of the industry article, you can enter the official website of Zhiyan Consulting to search and view.
Based on authoritative data released by the National Bureau of Statistics, government agencies and industry associations, the "Research Report on the Competitive Landscape Analysis and Investment Development of China's Liquefied Petroleum Gas (LPG) Industry" released by Zhiyan Consulting combines the collection and analysis of global data such as in-depth research data, expert feedback data, and internal operation data to improve the efficiency of customers' business decision-making. This report makes an in-depth investigation and research on the current situation and market of China's liquefied petroleum gas (LPG) industry, and makes a prudent judgment on the future development prospects and trends according to the development trajectory of the industry, which provides a crucial decision-making reference for investors to find new market investment opportunities and enter the investment layout of the liquefied petroleum gas (LPG) industry.
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