Over the past few decades, Brazil has been a regular importer of Liquefied Petroleum Gas (LPG), mainly used in the residential sector for food preparation. In 2021, the country imported around 11 thousand m³/day, corresponding to approximately 30% of the total demand for the product, which reached 36.9 thousand m³/day. Faced with the perspective of increased demand for this derivative, there is a need to study the expansion of the existing infrastructure, both for the supply and for the transport of LPG.
Amidst the growing search for cleaner and more sustainable energy sources, a recent study released by the National Union of Liquefied Petroleum Gas Distributors (Sindigás) reveals a promising outlook for the energy sector in Brazil. The report entitled “Investments in LPG and Other Uses” highlights a notable growth in investments related to Liquefied Petroleum Gas (LPG) and other energy applications.
According to the study, investments in the LPG sector and other uses reached impressive numbers in the last year, driving the diversification of the country's energy matrix. The report was prepared in partnership with the Energy Research Company (EPE), the Oil, Natural Gas and Biofuels Studies Board (DPG) and the Natural Gas Sector Studies Board (DEA).
One of the main highlights of the study is the continued growth of LPG as an energy source. LPG, popularly known as cooking gas, has been widely used in homes, businesses and industries. The report reveals an increase in investments aimed at expanding LPG distribution infrastructure, meeting growing market demand and ensuring safe and efficient access to this important energy source.
According to BEN 2022, “13.6 million m³ of Liquefied Petroleum Gas (LPG) were consumed in Brazil in 2021, of which 78.6% in the Residential sector, 13.1% in Industries, 4.9% in Retail, 3.1% in the Public sector and 0.3% in Agriculture”.
The study points to investments in other energy applications, such as the use of LPG in vehicles (automotive LPG) and the use of LPG as an input in industrial processes. These applications are gaining more and more relevance, boosting the sector and contributing to a more diversified energy matrix.
According to Sindigás, investments in infrastructure, technology and research in the LPG sector and other uses are in line with global trends in energy transition and sustainability. Brazil has the potential to become a reference in this segment, strengthening its economy, generating jobs and reducing environmental impacts.
The study also highlights the importance of public policies favorable to the sector, such as tax incentives and appropriate regulations, to further stimulate investments in this strategic area of the Brazilian economy.
With investments in LPG and other energy applications on the rise, the energy sector in Brazil is experiencing a promising moment. The diversification of the energy matrix, driven by these investments, contributes to environmental sustainability and paves the way for a cleaner and more efficient energy future.
The report by Sindigás and its partners reinforces the importance of continuing to invest in alternative energy sources, seeking innovative and sustainable solutions to meet the growing demands of the national and global market.
