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