Fuel Oil News February 2017 | Page 21

Tank Monitoring Specialists www.dunravensystems.com Our range of Storage Tank Monitoring Systems: • Local Level Monitoring Units • Overfill Warning Systems • Fuel Tank Security Systems • Remote Tank Monitoring Inside Out The UK LPG market THIS MONTH INSIDE OUT LOOKS AT BUTANE AND PROPANE, PETROLEUM PRODUCTS WHICH EMANATE FROM TWO PRINCIPAL SOURCES: • The distillation of crude oil feedstocks in an oil refinery, where LPGs are the lightest fraction to come off the CDU, with some of the butane stream remaining within the refinery as feed to the alkyation unit. • As ‘natural gas liquids’ associated with the extraction of crude oil (from which they are then removed in a stabilisation & separation plant) and natural gas (from which they are separated in a fractionation plant) Propane and butane are collectively known as liquefied petroleum gases (LPG). In the UK approximately two thirds of LPG requirements are currently sourced from the country’s refinery network, with the rest coming from North Sea oil & gas production. The system is close to balance, with a modest level of net exports. LPG as a fuel has excellent green credentials, its combustion resulting in negligible SO2 and NOx emissions. Its greenhouse gas (GHG) intensity is assessed to be 26% lower than that of petrol or diesel. The supply of LPG products into the UK market is dominated by two companies Calor and Flogas. Having started back in 1935, Calor is the largest supplier, Since 1997 it has been a wholly-owned subsidiary of family-owned Dutch company, SHV Energy, which describes itself as ‘the largest dedicated global LPG distributor’. Operating in 27 countries with a portfolio of over 30 million customers and annual turnover in excess of €5 billion, its other well- known European brands are Primagaz in France and Liquigas in Italy. In 2000 Calor entered into a joint venture with Shell -Autogas is the UK’s largest supplier of automotive LPG which European portfolio of LPG businesses, with parent company DCC Energy acquiring BP’s Benegas LPG business in Benelux with Statoil’s business in Sweden and Norway in 2012, and a Butagaz, a leading LPG distributor in France was acquired from Shell in 2015. The sector has its own trade association, UKLPG, based in Kenilworth, Warwickshire. is available at around 225 Shel l forecourts. In 1977 Flogas was launched as a start- up brand by DCC Energy LPG in Ireland. The company entered the UK market in 1984 through the acquisition of Portagas. In 2001 the company subsequently acquired Altagas, British Gas LPG (2002) and in 2013 BP’s bulk & cylinder LPG business. Flogas is now part of an expanding LPG consumption and usage LPG consumption represents 5% of the oil products’ demand barrel with overall usage split 75% propane/25% butane. By far and away its principal outlet – accounting for around two thirds of demand – is as a petrochemical feedstock for steam crackering to produce olefins – ethylene, propylene and butadiene – which are key building blocks for Continued on page 22. UK LPG Demand by principal sector, 2005, 2011-2015 (000MT) SECTOR 2005 2011 2012 2013 2014 2015 Petrochemicals 1,989 1,940 1,605 1,902 1,737 2,083 Industrial/Generation 793 652 390 211 366 356 Domestic 289 285 297 300 231 221 Agriculture 115 101 108 102 85 90 Automotive/Transport 120 98 93 94 88 82 Commercial 0 0 0 0 0 207 Other (1) 38 0 0 0 0 285 3,344 3,076 2,493 2,609 2,507 3,324 TOTAL Source: DECC Note (1) Comprises backflows from petrochemical plants to refineries for reprocessing. Fuel Oil News | February 2017 21