LPG Seen as Key Transition Fuel Toward Zero Carbon Emissions Target

LPG: A Key Transition Fuel for Zero Carbon Emissions Targets Melih Poyraz, Chief Executive Officer at Aygaz, stated that LPG, as a low-carbon and clean energy source, is an important transition fuel for achieving zero carbon emissions targets in the energy transition process. Poyraz, who also serves as chairman of the Turkey LPG Council at the Union of Chambers and Commodity Exchanges of Turkey (TOBB), noted that sustainability has become a global necessity due to the effects of climate change. Poyraz said that many countries and companies, including Turkey, have made emission reduction commitments under the Paris Agreement, and continued as follows: "To reach these targets, we need an energy transition towards decarbonizing the global economy. We believe that the global transformation and the commitments made could be an opportunity for the LPG sector. LPG is a low-carbon and clean energy source compared to other fossil fuels." Noting that the World LPG Association has positioned LPG as a transition fuel due to energy access inequalities in the transition to a low-carbon economy, Poyraz stated: "LPG, viewed as an energy source suitable for direct use and accessible, is seen as an important part of the energy mix during the transition process. It is an important transition fuel for achieving zero carbon emissions targets in the energy transition process."

An LPG market of 3.8 million tonnes has developed

Poyraz said that Turkey, which holds an important position in the global LPG market, saw the development of an LPG market of approximately 3.8 million tonnes last year. Stating that the market continues to grow, Poyraz said: "According to the sector report published by EMRA (Energy Market Regulatory Authority) in August, the Turkish LPG market grew by 28 percent in the January-June period compared to the previous year and reached 2 million 171 thousand tonnes. The main reasons for this growth stem from increased demand in the autogas and bulk gas markets." He also noted that demand continues to increase in the autogas sector, saying: "Turkey is positioned as the world's second-largest autogas market after Russia. The autogas market, which accounts for more than 75 percent of the Turkish LPG market, saw market growth of 24 percent in the first six months." Stating that the price gap between LPG and other fuel types is expected to continue as it currently stands, Poyraz explained that sustained demand growth is therefore anticipated.

"We are working towards becoming an international LPG player"

Poyraz noted that Aygaz maintains its leading position in the Turkish LPG market where approximately 80 companies operate, stating: "As of June, Aygaz holds a 40.9 percent market share in the bottled gas segment and 22.1 percent in the autogas segment, with a total market share of 26.1 percent." Poyraz said the company's future growth targets are built on four main strategies: "As a company, we aim to create sustainable value, become an international LPG player, transfer the capabilities and strength of the Aygaz platform to strategic business areas, and develop environmentally friendly solutions with a focus on sustainability." Noting that they continue their work towards becoming an international LPG player, Poyraz stated: "Aygaz's first foreign investment, United Aygaz, a greenfield investment made jointly with United Group based in Bangladesh, began operations as of August 2022. Bangladesh, with LPG consumption of nearly 1.5 million tonnes, is one of the world's fastest-growing LPG markets. In addition to 2 spheres with a total capacity of 6 thousand tonnes in Chittagong, the installation process for 4 new spheres with a total capacity of 10 thousand tonnes is ongoing. We are also continuing work and license procedures for the Dhaka facility, which we aim to commission in 2024." he said.   Source