Energy planner warns of LPG shortfall

China’s supply of liquefied petroleum gas (LPG) will trail demand by 7.3 million metric tons by 2010 due to rising demand in rural areas and small- and medium-sized cities, AFP reported, citing state media. The fuel is primarily used to power automobiles and in cooking. Domestic demand for LPG is expected to hit 26.2 million metric tons in 2010 while supply is likely to stretch no further than 18.9 million metric tons. China’s per capita LPG consumption was 17.3 kilograms in 2006, below levels seen in the EU and US, said Bai Yi, deputy head of the state-run National Petroleum and Chemical Planning Institute. Bai didn’t suggest how China might cope with the LPG shortfall. However, he noted that LPG demand is likely to ease in the next decade due to the emerging liquefied natural gas market.