What is BULK LPG?

Liquefied Petroleum Gas (LPG) is a unique commodity. It is a by-product of natural gas extraction and crude oil refining, representing about two percent of overall petroleum output. Because it is 270 times more compact as a liquid than as a gas, it is economical to store and transport as a liquid. It is also one of the cleanest-burning fossil fuels and has a much lower carbon footprint than fuel oil, wood or coal. LPG is is also one of the most versatile sources of energy with more than a thousand residential, commercial and industrial applications. Global supplies of LPG have been growing rapidly in recent years due to shale gas extraction that yields LPG as a by-product. As a result, there is a clear need for additional LPG distribution infrastructure to enable this increased supply of LPG to reach energy consumers, particularly in emerging markets where latent demand for LPG is greatest.

Bulk means LPG is externally stored at customer sites in larger tanks that are serviced and refueled by small Bobtail tanker trucks. Bulk LPG replaces inefficient LPG cylinders and offers improved pricing, safety, convenience and maintenance. Bulk LPG supply provides an uninterrupted flow of LPG that supports more demanding commercial and industrial applications as well as reticulated systems that can connect thousands of individually metered residential customers, similar to a natural gas grid. In many emerging markets, LPG is only available to consumers in cylinders. Bulk requires larger LPG storage tanks, piping, safety equipment as well as knowhow and capital. Providing these inputs is the basis for the venture opportunities being pursued by CGV.