Saturday, May 06, 2006 at 16:43
QUOTE
How much LPG is produced in Australia?
During 2000 Australia produced 3.3 million tonnes of LPG.
Approximately 78 per cent (2.6 million tonnes) of Australia's LPG was sourced directly from underground reservoirs, generally as an associated product of crude oil and natural gas production. This is known as naturally occurring LPG.
The remaining 22 per cent (0.7 million tonnes) of Australia's LPG production is extracted from crude oil during the refining process at eight refineries located near Australia's major mainland cities. LPG is produced when crude oil is heated and when reformers produce petrol. It is likely that refinery production of LPG will rise as the market share of higher octane petrol increases. More LPG is produced by refinery reformers as the octane requirement of petrol produced increases.
Australia's naturally occurring LPG is sourced predominantly from Bass Strait (offshore Victoria), the North West Shelf (offshore Western Australia) and the Cooper-
Eromanga Basin (in central Australia).
The major companies involved in naturally occurring LPG production in Australia are Esso, BHP Billiton, Woodside and Santos whilst the companies involved in refinery production of LPG are
Mobil, Shell, BP and
Caltex.
What is the level of Australian demand for LPG?
LPG accounts for about 2 per cent of Australia's energy needs.
Total Australian sales of LPG during 2000 was 2.3 million tonnes (consisting of 1.9 million tonnes locally produced and 0.4 million tonnes imported).
Approximately 60 per cent of Australian LPG sales were for automotive use with the balance used for domestic purposes.
The ALPGA has estimated that LPG has the third largest transport fuel market share, other than petrol and diesel, and estimate LPG will account for 8 per cent of all road transport usage by 2010.
How much LPG does Australia export and import?
Australia trades in LPG on world markets. During 2000 Australia exported 1.4 million tonnes of LPG (ie: around 43 per cent of total production) mainly from Western Australia, with the largest markets being Japan and China. During the same period, Australia also imported 0.4m tonnes of LPG (ie: around 17 per cent of total consumption), mainly from Saudi Arabia.
There is a shortage of propane in the eastern states and imports are therefore necessary. Autogas demand exceeds refinery autogas production in the Eastern States. New South Wales and Queensland are heavily dependent on imported LPG. However, propane alone cannot be economically shipped from Western Australia to the eastern states. It is more cost effective for Western Australian production of both propane and butane to be exported, with propane specific cargoes being imported to meet demand in New South Wales and Queensland.
Propane and butane are separately produced and stored, then exported from the North West Shelf in separate tanks on single shipments (a normal world market situation). The eastern states require only propane and have bulk delivery and storage facilities for propane only. This situation underlies why it is more cost effective for North West Shelf LPG producers to ship their products for export than to sell it to markets in the eastern states.
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Its only the East Coast that has a prob with propane according to this. The gas is processed to LPG for transportation from WA.
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