LPG: The Very Top of Distillation Column

What is LPG exactly? LPG or in its full name "Liquefied Petroleum Gas" is a byproduct during the refining of crude oil and natural gas processing. In refinery distillation, crude oil is heated and separated into various components based on their boiling points, with LPG emerging as one of the lighter fractions among the components. The mixture of LPG, primarily composed of propane and butane, is stored under high pressure in liquid form for ease of transport and storage.

In Thailand, the Energy Policy and Planning Office (EPPO), who regulates fuel prices, also regulates LPG to ensure its affordability in the market. The EPPO Price for LPG is the government-set reference price which can be influenced by both domestic production and demand from overall market. The buying-selling of LPG often references the EPPO price with certain suitable discount that the involved parties see appropriate.

For its use, LPG has a wide range of application. In transportation, LPG serves as an alternative vehicle fuel, offering a cleaner-burning option compared to the conventional gasoline or diesel in internal combustion engine. While in the industrial sector, LPG is utilized as a fuel for processes requiring consistent and high temperatures, such as metal fabrication, ceramics production, and glassmaking. Additionally, LPG can be used also as a feedstock in the chemical industry for producing plastics, synthetic rubber, and other petrochemical products.

Next up, we will move cover the next product coming out of in refinery distillation right after LPG, Gasoline & Naphtha!