Canada Liquefied Petroleum Gas (LPG) Market Overview, 2029

Canada Liquefied Petroleum Gas (LPG) Market Overview, 2029

Liquefied Petroleum Gas (LPG), also commonly known as propane, has been a staple in Canada's energy mix for decades. Its history stretches back to the early 20th century, initially used primarily for industrial applications. However, post-World War II, LPG adoption surged in residential settings, particularly in rural areas where natural gas infrastructure wasn't readily available. Over time, its applications expanded to include agriculture, transportation, and even commercial uses like cooking in restaurants. Canadians value reliable and affordable energy sources, which is where LPG shines. Its clean-burning nature compared to other fossil fuels resonates with the growing environmental consciousness. Additionally, LPG plays a role in supporting remote communities by providing essential heating and cooking fuel. A trend to watch is the potential of LPG for autogas vehicles. With rising gasoline prices, LPG's cost-effectiveness and lower emissions could entice more Canadians to convert their vehicles.

According to the research report ""Canada Liquefied Petroleum Gas (LPG) Market Research Report, 2029,"" published by Actual Market Research, the Canada Liquefied Petroleum Gas (LPG) market is expected to grow with more than 6% CAGR from 2024 to 2029. The Canadian Liquefied Petroleum Gas (LPG) market is poised for significant growth. One key driver is the increasing demand for cleaner alternatives in various sectors. LPG emits fewer greenhouse gases than traditional heating fuels like coal or oil, making it an attractive option as Canada strives towards its emission reduction targets. Additionally, government initiatives offering incentives for LPG use, particularly in transportation, could further propel market expansion. The growing propane export market, fueled by the launch of major export terminals, is another factor bolstering the Canadian LPG industry. Despite its strengths, the Canadian Liquefied Petroleum Gas (LPG) market faces some challenges. Fluctuations in global propane prices can impact domestic costs, raising concerns for consumers. Stringent regulations aimed at improving safety standards, while crucial, can add complexities to the supply chain. Additionally, the ongoing development of renewable energy sources presents a long-term challenge. As Canada transitions towards a more sustainable energy future, LPG will need to demonstrate its continued value proposition to remain competitive.

Within application segmentation, the domestic sector emerges as a cornerstone, notably serving households in remote or off-grid locations for space and water heating, and cooking purposes, with potential growth spurred by governmental initiatives promoting clean energy adoption, particularly in areas transitioning away from traditional heating sources like coal or fuel oil. In agriculture, LPG finds versatile use for drying crops, heating greenhouses, and powering irrigation pumps, leveraging its portability and clean-burning attributes, especially beneficial in sprawling rural areas with limited natural gas infrastructure. Industrially, LPG proves indispensable across diverse operations including process heating, metal cutting, and forklift power, owing to its adaptability, efficiency, and consistent supply. While transportation doesn't dominate, LPG fuels some school buses and fleet vehicles, particularly in regions lacking compressed natural gas infrastructure, with growing interest in propane autogas conversions for personal vehicles driven by cost savings and environmental considerations. Refinery and chemical sectors rely on LPG as a feedstock for petrochemical products, with demand influenced by broader economic factors and global commodity prices.

Source segmentation further delineates the market, with refineries extracting LPG during crude oil refining, subject to fluctuations in global crude prices and domestic demand, while associated gas extraction depends on natural gas exploration activity, particularly in shale formations, and non-associated gas extraction offers more controlled output albeit with higher exploration costs.

Canada's Liquefied Petroleum Gas (LPG) market operates under a complex web of federal and provincial regulations designed to ensure public safety and environmental protection. The Canadian Energy Regulator (CER), formerly the National Energy Board (NEB), oversees interprovincial pipelines and international trade of LPG, dictating safety standards for transportation and storage facilities. Meanwhile, individual provinces hold jurisdiction over intra-provincial distribution, storage, and use. This means regulations for things like installation, operation, and maintenance of LPG appliances and storage tanks can vary by province. Compliance with national standards developed by the Canadian Standards Association (CSA) is generally mandatory across the country. These CSA standards cover everything from design and manufacturing of equipment to safe installation and use of LPG appliances and storage containers. Additionally, specific provinces may have additional regulations or require permits for certain LPG activities. For example, some provinces might require special licensing for technicians who install or service LPG appliances. Staying up-to-date on this patchwork of regulations is crucial for any player in the Canadian Liquefied Petroleum Gas (LPG) market.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Liquefied Petroleum Gas (LPG) market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Application
• Domestic
• Agriculture
• Industrial
• Transportation
• Refinery
• Chemical

By Source
• Refinery
• Associated Gas
• Non-associated Gas

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Liquefied Petroleum Gas (LPG) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Liquefied Petroleum Gas (LPG) market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Application
• Domestic
• Agriculture
• Industrial
• Transportation
• Refinery
• Chemical

By Source
• Refinery
• Associated Gas
• Non-associated Gas

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Liquefied Petroleum Gas (LPG) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.