LPG industry blows its trumpet

The local LPG industry is keener than ever to break the cultural predominance of petrol by showing motorists the many advantages it delivers in running costs and environmental cleanliness.

Australia has the world's largest supply of liquid petroleum gas -- hundreds of years' worth. Now, hefty investment in automotive LPG technologies is helping to close the fuel efficiency gap between LPG and petrol. With the federal government's conversion incentive scheme offering up to $2000 to make the change to private buyers, the industry is sinking more than ever into selling LPG's benefits.

It's indigenous, it's plentiful, it costs little and will likely remain that way as petrol prices rise, and it's environmentally honourable. It also has a well established support base throughout the transport and other industries, so there are none of the infrastructure and cost barriers associated with start-up technologies like EV charging networks.

And it employs about 20,000 Australians, more than a third of those in automotive conversions.

To remind Australians of all this, LPG Australia has taken to releasing an industry report card -- its annual summary of the industry's progress and its primary product's penetration into automotive and industrial market sectors. The report is designed as a heads-up on LPG's contribution to the national economy and the considerable remaining potential it offers in economic and environmental benefits.  

Launched in Canberra by Senator Kim Carr, the federal Minister for Industry, Innovation, Science and Research, the second annual LPG report card summarises the industry's year with particular focus on the all-important autogas segment.

It highlights industry estimates that an average driver putting in 20,000 km a year would save around $1092 a year in an LPG powered 2008 FG Ford Falcon over its ULP fuelled counterpart.

The same car would emit 590 kg less CO2 a year, says LPG Australia. Extrapolated across Australia's current LPG vehicle fleet of over 700,000 vehicles, it claims, shows LPG vehicles are already making a hefty contribution to the local auto industry's efforts to reduce its carbon footprint.

The report acknowledges the fillip it's been given by federal government's LPG vehicle subsidy scheme, responsible for more than a quarter of a million grants since its inception in 2006. Auto fuel tanks now account for 65 per cent of LPG consumed in Australia each year.

But this is a two-way deal, says LPG Australia president James Batchen. "It's worked because the industry has put $3.5 billion into LPG infrastructure, from oil and gas production, refineries, importing and manufacturing the equipment we need, marketing, distribution and retail."

The 3200-outled LPG retail network is now sufficiently spread across Australia's landmass to allow drivers to go virtually anywhere, the industry points out.

The LPG industry is keen to position its product as "Australia's fuel of the future". It highlights, the Australian Bureau of Agricultural and Resource Economics (ABARE) forecasts local production of LPG to double by 2030. ABARE also suggests plenty of room for demand to grow -- the industry would have no trouble meeting a 6 per cent annual hike over the next two decades.

In addition to direct income, offshore LPG sales have generated indirect export revenues by serving as a piggyback for associated industries such as locally made autogas pumps.

Look for more about the latest LPG technologies and vehicles at the Carsales Network next week.

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