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The Africa LPG Landscape and Opportunities for Growth

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Presentation on theme: "The Africa LPG Landscape and Opportunities for Growth"— Presentation transcript:

1 The Africa LPG Landscape and Opportunities for Growth
Presentation by Africa LPG Association at the Nigeria LPG Association Conference, Abuja, 29-30 November 2019.

2 BRIEF ON THE AFRICA LPG ASSOCIATION (ALPGA)
FORMATION: The Africa LPG Association (ALPGA) was formed in Cape Town, South Africa, at the sidelines of Argus Media Africa LPG Conference, 2017, by African LPG stakeholders to foster cooperation and grow the LPG market in the continent. VISION: To work towards making Africa the leading global market for LPG GOALS. Expansion of LPG Market in Africa with all the multiplier benefits: ASPIRATION: To become the authoritative, continental voice for LPG, by promoting the use of LPG continent-wide to foster a cleaner, healthier and more prosperous Africa. 

3 BRIEF ON ALPGA STRATEGY: Facilitate collaboration between stakeholders such as relevant government agencies, companies in LPG business, consultancy firms, donor and development agencies, diplomatic bodies like AU and regional groupings, research and development institutes, financial institutions, energy journals and publications and the media, to achieve synergy and support the development of LPG markets.

4 THE AFRICA LPG SCENE 4.2% growth since 2013 11kg per capita (average)
Demand > N/Africa Low Demand in SSA Consumption growth Abundant LPG resources GDP & GDP/c growth Population growth Policy response Domestic Consumption 85% by share Opportunities for Diversification of LPG Use 50 kg 2 2kg (NIG) 4kg 7.6

5 CHARACTERISTICS OF AFRICA LPG VALUE CHAIN
Inadequate Supply Dominance of Big Traders Concentration of Infrastructure in Urban areas Inadequate Storage (Both Primary and Secondary) End-user apathy Dominance of Trucking Multiple Distributors Absence of Vertical Integration Disparity of Profit margins Illegal operators VALUE CHAIN Supply Off-take Distribution Transport Storage End Users

6 POLICY PRESCRIPTIONS POLICY Collaboration Fiscals Safety Awareness
Guidelines Collaboration Infrastructure Safety

7 HURDLES TO LPG PENETRATION IN AFRICA
Pricing Policy Regulation Infrastructure Funding Accessibility

8 INVESTMENT OPPORTUNITIES IN LPG SECTOR IN AFRICA
Supply Offtake Gas Processing Plants/Refining Imports Distribution Filling Plants/Retail Outlets Bulk Storage Distribution Trucks Manufacturing Cylinders Accessories Fabrication of Storage Tanks

9 MARKET SEGMENTS FOR LPG INVESTMENT
Over 85% of LPG Use in Africa is for Domestic Cooking Other uses of LPG: Industry/Commercial Petrochemicals Agriculture Autogas/Transportation Rural Lighting / Refrigeration/ Medicine Storage

10 BENEFIT CIRCLE OF INVESTMENTS IN LPG SECTOR
Job Creation Tax Opportunities Carbon Credits Health Benefits Positive Impact on GDP

11 LPG ASPIRATION IN AFRICA
Availability Acceptability Accessibility Affordability

12 THANK YOU FOR YOUR ATTENTION


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