The LPG industry in Europe is increasingly concerned about dwindling supply amid the coronavirus pandemic, which forced refiners to lower their run rates. An industry source said that panic buying had boosted LPG demand in some countries. Households with no connection to the natural gas grid use LPG for heating gas.
LPG is considered essential goods in some countries that imposed lockdown amid the pandemic. This means that the distribution of the fuel is allowed during the strict movement restrictions. However, the lack of staff has created a potential issue for land and seaborne LPG deliveries.
LPG demand for heating is expected to remain unaffected by the pandemic, the industry source said. However, autogas and commercial sectors are likely to be impacted. Autogas demand will likely fall by 20% to 50% if movement restrictions across Europe are prolonged until May. Europe’s autogas demand reached 10.9 million tons in 2019. Before the pandemic, autogas consumption was projected to increase to 11 million tons this year.
