Industry discusses challenges of converting to LPG
Suppliers have to overcome a ‘natural resistance’ when persuading home owners and car drivers to covert to LPG.
Henry Cubbon, managing director of DCC Energy LPG, the parent company of Flogas, said the industry had to promote LPG and create a ‘virtuous’ circle.
Speaking at the Argus European LPG Markets conference, Cubbon said Flogas had worked with some forward thinking and modern procurement directors, particularly in the whisky industry in Scotland and within dairy in Ireland, that ‘got it’.
He explained that DCC, which recently acquired Butagaz for EU464m (£394), took a segmented approach and worked across the developing, rural and developed landscape.
“If LPG becomes more plentiful, it becomes more competitive,” he added. Some 40 million people live off grid in Europe but only 17% are LPG users, delegates heard. And this, coupled with one billion cars on the road globally causing 25% of emissions, and yet only 2% were fuelled by LPG were the challenges the industry needs to combat.
Cubbon added: “There is a huge amount of natural resistance to change. But for industrial change it is easier because they can see the logic.”
He said Flogas offered a complete one stop service for homeowners looking to convert to LPG, as it was like, ‘taking out the beating heart’ of a home.
The three day Argus European LPG Markets 2016 was sponsored by Ankorgaz, Sibur and GTT.
LP Gas Today was a supporting partner of the event along with UKLPG, AELPG, WLPGA, POGP and LPG Exceptional Energy.