Liquefied petroleum gas is a clean, cost-effective to use and an environmentally friendly substitute for gasoline and diesel in the market that is driving the demand for LPG. The main drivers of the global LPG market are rising LPG consumption due to increasing population, government initiatives to use cleaner fuel, industrialisation and urbanisation, increasing investments in developing countries and improved R&D.
However, the storage problem of LPG, the irregular supply of LPG in Sweden and the high installation cost of the LPG liquefaction process are the main limitations of this market. Due to the properties of LPG, such as its high flammability, suppliers have problems in storing and supplying LPG. Among the application segments, residential and commercial segments are the dominant segments globally due to increasing investments, urbanisation and industrialisation.
People's preference for traditional uses of the fuel and government initiatives have driven the demand for LPG worldwide.
In Sweden, LPG is not widely deployed as an automotive fuel, although several initiatives in the country are pursuing renewable LPG that can boost the installation of LPG filling stations.
In Sweden there are currently 62 filling stations offering LPG for sale to the public, an extensive network, but not sufficient for the country's needs.