UAE LPG Market By Application (Residential, Industrial, Commercial, Agriculture, Transportation), By Source (Refinery, Associated Gas, Non-Associated Gas), By Cylinder Capacity (5kg, 11-12.6kg, 13-14.2kg, 15-16.5kg, 19-29.5kg, More Than 29.5Kg), By Region, Competition Forecast and Opportunities, 2028

UAE LPG Market is anticipated to grow at a good pace in the forecast period, 2024-2028, The country's LPG market is anticipated to develop in the next years because of the rising demand for clean cooking fuels in both rural and urban households. Liquefied petroleum gas production in the United Arab Emirates totaled over 587 thousand metric tonnes in 2019. In UAE, 70.3 million metric tonnes of refined petroleum products were produced overall. There are various commercial and industrial applications that will continue to be the main drivers of the LPG market growth in UAE.

Propane, usually referred to as liquefied petroleum gas, is a flammable hydrocarbon gas that is frequently utilized as a non-toxic, sulfur-free fuel. Together with butane (C4H10) and propane (C3H8), it also contains minor amounts of other hydrocarbons. LPG is a very portable fuel and adaptable source of energy for enterprises located in places without access to piped gas supply because of its simple storage. It is favored over a number of other energy fuels because it emits less carbon and sulphur during combustion, protecting the environment. In process industries, LPG is frequently used to power the boilers that produce steam and boil water. Because of its high flash point and low GHG emissions compared to other fuels, it is often employed as a cooking gas in homes. Natural gas or crude oil acquired from the extraction of fossil fuels are refined to create LPG. When natural gas is processed, the gas is removed from the wet natural gas stream that is created as a byproduct of refining oil. It is typically stored as a liquid at moderate pressure and transported inside LPG cylinders.

Increasing Government Initiatives and Support for LPG Adoption to Aid Market Dynamics

UAE's demand for LPG has grown significantly in recent years. UAE's LPG consumption increased by 5% from the previous fiscal year (2019-20) to 27.6 million metric tonnes in 2020-21. During the projected period, it is anticipated that this tendency would continue and intensify, mostly as a result of the nation's supportive government measures. There are around 30.5 crore active LPG residential users in UAE as of April 2022, up from 14.9 crore customers in 2015. The number of home LPG consumers in the nation has significantly increased. Similarly, the number of LPG distributors in UAE increased from slightly under 9686 in 2010 and 15930 in 2015 to 25269 in April 2022. Additionally, during the past few years, UAE has seen an increase in LPG bottling factories. The number of LPG bottling plants reached 202 in 2021, according to the Petroleum and Planning & Analysis Cell (PPAC), as the nation's demand for LPG continued to climb. These changes have enabled UAE to increase its LPG coverage from about 56.2% in 2015 to 99.8% in 2021. During the forecast term, a comparable situation is anticipated to persist.

Increasing Utilization of LPG in Transportation as an Alternative Fuel to Augment Growth

Liquefied petroleum gas for automobiles, usually referred to as LPG or Autogas, is a typical fuel for vehicles. Auto gas is the non-blended alternative to conventional oil-based transport fuels like gasoline and diesel that is most widely used. Over the past two decades, auto gas consumption has continuously risen, hitting a record high of 27.1 million tonnes in 2019 with an increase of 1% over the previous year. However, demand has recently fallen, in part as a result of increased fuel efficiency and a decline in the fleet of autogas vehicles in a number of significant regions.

Increasing Emphasis on Utilization of BioLPG

Propane produced from renewable feedstocks such plant and vegetable waste are known as bioLPG, renewable propane, or bio propane. Hence, bioLPG is a fuel that burns cleanly and has little effect on air quality. It is also a low-carbon alternative to switching from oil and coal in the business sector and has a long-term place in the energy mix. Creating a healthy market for liquefied petroleum gas can serve as a springboard for a gradual switchover to bioLPG, a chemically indistinguishable but limitless variant of conventional LPG. BioLPG may be used in current LPG appliances and storage units and has a carbon intensity that is roughly 70–80% lower than that of oil, providing an economical route to decarbonization for commercial and industrial enterprises.

Rising demand for LPG in Domestic Power Generation and the Automobile Sector

The automotive industry has undergone a significant transition that is fuelling market expansion. A typical type of clean, low-carbon transportation fuel is LPG. It is kept in inflated cylindrical cylinders and utilized in construction, sailing, hospitality, and agriculture. The business is also being driven by advances in the technology of natural gas extraction and purification. LPG production from natural gas is substantially higher than LPG production from crude oil. The gases and liquids present in natural gas, which are extracted from the earth's crust and used to create LPG, include propane and butane. Natural gas accounts for the majority of the LPG produced in Dubai, with crude oil refinery producing the remaining percentage. For instance, the UAE contributed 1.4% of the world's natural gas output in 2020 by producing 55.4 billion cubic meters of gas. During Dubai's busiest summer months, natural gas usage is used to generate domestic power, reflecting the high-power requirements of cooling and air conditioning equipment. 2020 will see Qatari imports and domestic production meet all of the UAE's natural gas needs. Qatar supplied the UAE with 20.2 billion cubic meters of natural gas.

Increasing Awareness of Green and Clean Energy

Both urbanization and industrialization have dramatically increased recently throughout the country. The flow of investment in Dubai has changed from wealthy nations to emerging regions due to lower labor and infrastructure expenses. Investments in urbanization and industrialization have expanded, raising household income as well as the disposable income of the population's middle- and lower-classes. Because of the use of liquefied petroleum gas in the residential and transportation sectors, market growth is anticipated in the future.

Recent Development:

• In March 2021, an agreement was reached by the Abu Dhabi National Oil Company (ADNOC) to deliver sulphur and liquefied petroleum gas to the Pertamina, the national oil corporation of Indonesia, over a four-year period for around USD 2 billion. The LPG and sulphur sales deal, which is a component of Indonesia-Emirates' "Wonderful Week 2021," will be for a period of 4 years and have an estimated contract value of USD 500 million per year. The agreement further stipulated that the sum could alter if the cost of these items fluctuates on a worldwide scale.
• The World LPG Association (WLPGA) will host LPG Week in Dubai from December 5–9, 2021, with the theme "Energizing Future." Expo 2020, which will now take place concurrently with the theme "Connecting Minds, Building the Future," was forced to be postponed due of the COVID-19 pandemic.
• The Chairman of the Dubai Supreme Council of Energy announced Resolution No. 3 of 2021 to outline the regulatory framework, strategies, and rules for trading LPG and its derivatives in Dubai in compliance with the highest international standards in this area. According to the Dubai Supreme Council of Energy) the demand side control strategy resulted in 6.4 terawatts of power being saved in 2021.

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Market Segmentation

The UAE LPG Market is divided into Application, Source, Cylinder Capacity, Region and Competitive Landscape. Based on Application, the market is divided into Residential, Industrial, Commercial, Agriculture, and Transportation. Based on Source, the market is divided into Refinery, Associated Gas, and Non-Associated Gas. Based on Cylinder Capacity, the market is divided into 5kg, 11-12.6kg, 13-14.2kg, 15-16.5kg, 19-29.5kg, More Than 29.5Kg.

Market Players

Major market players in the UAE LPG Market are Emirates Gas LLC (Emirates National Oil Company), Emirates General Petroleum Corporation (Emarat), ADNOC Distribution, Brothers Gas, Dubai Oil & Gas Company LLC, United Gas Company LLC, AD LPG, Lootah BC, Dubai Fuel Supply, and Smart Gas.

Report Scope:

In this report, the UAE LPG Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

      ·         UAE LPG Market, By Application:

• Residential
• Industrial
• Commercial
• Agriculture
• Transportation

      ·         UAE LPG Market, By Source:

o   Refinery

o   Associated Gas

o   Non-Associated Gas

      ·         UAE LPG Market, By Cylinder Capacity:

o   5kg

o   11-12.6kg

o   13-14.2kg

o   15-16.5kg

o   19-29.5kg

o   More Than 29.5Kg

       ·         UAE LPG Market, By Region:

o   Dubai

o   Abu Dhabi

o   Sharjah

o   Rest of UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the UAE LPG Market.

Available Customizations:

UAE LPG Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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