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China's LPG shortfall to hit 7.3 million tonnes in 2010

(Xinhua)
Updated: 2008-05-12 10:01

China's liquid petroleum gas (LPG) shortfall is expected to hit 7.3 million tons in 2010, led by the country's surging industrial demand.

Bai Yi, deputy head of National Petroleum and Chemical Planning Institute, made the remarks at an industry forum held in the port city of Tianjin over the weekend, attributing the demand surge to soaring demand from the country's eastern and southern regions, and rural areas.

Representatives from academic institutions and the chemical industry took part in the forum to discuss important issues on the current and prospective situation in China's chemical production industry.

Although clean energies, such as marsh gas, wind and solar energy have become more and more popular in big cities such as Beijing, Shanghai and Guangzhou, small and medium-sized cities are still keen to use LPG, said Bai, and there is potential growth in this market.

Consumption in small and middle cities in eastern and southern regions accounts for 62 percent of the total national volume. Growing demand for LPG has been recorded in glass, cement and pottery industries in these areas, said Bai.

Per capita LPG consumption in China hit 17.3 kg in 2006, but this was still well below the level of the European Union and the United States, said Bai.

Bai predicted that consumption growth of LPG will gradually slow in the next decade, because of the emerging liquid natural gas market.

According to the development plan of the country's oil industry, domestic demand of LPG is to hit 26.2 million tons in 2010, however, supply is expected to be only 18.9 million tons.