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Propane is a gas that can also be converted into liquefied form by adding butane, commonly known as LPG (Liquefied Petroleum Gas). It is a by-product of petroleum refining and natural gas processing. It is nontoxic, colourless, and virtually odourless. The demand arises from the residential sector in and around their homes for furnaces, water heaters, air conditioners, outdoor grills, fireplaces, and appliances. On farms, propane fuelled equipment and technologies control pests, dry crops, and power irrigation pumps. Propane is economical and efficient, virtually anything in the house, restaurant or building which runs on electricity can run on propane, the cost of electricity is more than twice the cost of propane. However, Propane gas is very flammable and if it escapes into a confined space it can build up and explode if exposed to a spark or flame. Damaged propane tanks can also be an explosion risk, as their internal pressure can cause them to burst.
On the basis of application, the propane gas market can be segmented into residential, commercial, industrial, agriculture, transportation, and chemicals. In the residential sector, the consumption is done in air conditioning, heating water, cooking, and refrigerating foods, drying clothes, lighting, and fuelling fireplaces. Homes that use propane as main energy sources usually have large propane tanks outside of their house holding 500 and 1000 gallons of liquid fuel. The industrial sector uses include propane-driven forklifts and fleet vehicles. Metal workers use propane tanks to fuel their cutting torches and other equipment. Industries also use propane for soldering, vulcanizing, and other processes that need a ready heat source. Propane is also a valuable feedstock for the chemical industry. Almost half of the propane used today is as a raw material for making plastic bags, nylon, rubber, pharmaceuticals, and other products. Millions of commercial establishments, including restaurants and hotels, depend on propane for heating, cooling, and other uses. Farmers use propane fuelled equipment to control pests, dry crops, and operate a variety of farm equipment.
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The key market driver for the global propane market is increasing in demand for low emission sustainable fuel in the automotive and transportation sector. Burning propane produces less greenhouse gas emissions than other types of fuel. Propane is convenient & portable gas cylinders can be transported, refilled, and installed anywhere. It is also environment-friendly with very low sulfur content and zero lead content. It can be used for heating homes, fuelling backyard grills, healing balms and operation of farm equipment, to fuel fleet vehicles, to fuel hot air balloons and appliances.
The factor that is expected to inhibit the growth of the propane market is high installation and maintenance cost. Installation is done by the professionals which automatically increases the cost of installation. Propane gas is very flammable and if it is escaped in a narrow space, it can build up and explode if exposed to a spark or flame. This means propane lines must be very carefully inspected to ensure that they aren't leaking. Damaged propane tanks can also be an explosion risk, as their internal pressure could cause them to burst.
Some of the key players in propane market are BP plc, Chevron Corporation, Royal Dutch Shell plc, Anadarko Petroleum Corporation, ConocoPhillips, Reliance Industries Ltd., PetroChina Company Limited, Sinopec, Evonik, Sika AG, Total SA, Eni S.p.A, Marsh LP Gas Company Inc., Statoil ASA, and Ferrellgas Partners L.P.
· North America (the USA and Canada)
· Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
· Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
· Latin America (Brazil, Mexico and Rest of Latin America)
· Middle East & Africa (South Africa, GCC and Rest of the Middle East & Africa)
The global propane market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The propane gas is widely used for water heaters, air conditioners, pest controls, and generation of electricity in the US. The US is among the highest producer and exporter of propane gas all over the world. Recent growth in oil and natural gas processing from U.S. shale gas has increased the export capacity investment in the U.S. Gulf Coast region, which has made the U.S. become a net propane exporter to the global marketplace. The traditional markets for propane in Europe are the off-grid consumer for space heating and cooling. The economic and population growth are the major factor for the increase in demand for LPG in countries like China and India. The demand is primarily expected to arise from the industrial sector. GCC has also planned to explore new untraditional sources of feedstock for chemicals industry projects in Algeria and Nigeria for increasing petrochemical industries. GCC has also planned to explore new untraditional sources of feedstock for producing chemical.