Connection

popular articles

COP29: Call for Accelerated Climate Finance Commitments
Ocergy SAS anchors its Lidar buoy for biodiversity analysis
China Optimizes Petrochemical Production with 50 Million Tons Capacity
Iraq: TotalEnergies transforms flared gas into sustainable electricity
India and NHPC invest 660 million USD for 1,000 MW in Bihar

Europe: Liquefied petroleum gas replaces natural gas because of costs

The continuing rise in natural gas prices in Europe is leading refineries to favor LPG as a more cost-effective alternative for their energy operations.

Please share:

European refineries are reacting to the sharp rise in natural gas costs by adapting their energy strategies. Liquefied natural gas (LNG), whose price reached $12.397/MMBtu in August 2024, is putting intense financial pressure on these facilities.
With prices soaring 23% in one month, refineries are turning to liquefied petroleum gas (LPG), a choice dictated by the need to control operating costs.
Propane, the main component of LPG, is currently trading at $520/tonne in the strategic Amsterdam-Rotterdam-Antwerp hub.
This alternative has become particularly attractive, as it offers a stability that the natural gas market cannot guarantee due to its high volatility.
This change of direction can also be seen in LPG export volumes, which have fallen, reflecting the retention of this resource for internal use.

Economic impact and strategic choice

Switching to LPG is a pragmatic response to a tense economic situation.
By opting for this energy source, refineries avoid the exorbitant costs of natural gas, while securing their supply.
The drop in LPG exports, from 47,100 tonnes in July to 35,300 tonnes in August 2024, bears witness to refineries’ determination to prioritize domestic use of LPG.
This shift is not without consequences for the energy market.
Reduced demand for natural gas could affect LNG prices in the medium term.
In addition, the increased use of LPG could accelerate investment in suitable storage and distribution infrastructures, thereby altering the regional energy outlook.

Long-term outlook

The current situation highlights the challenges facing European refineries, caught between fluctuating energy markets and the need to maintain competitive costs.
The adoption of LPG as an alternative to natural gas could become a sustainable trend if economic and geopolitical conditions continue to support this dynamic.
It could also encourage other sectors to follow suit and optimize their energy costs.
Price trends and the reaction of refineries will be key indicators for the future of the European energy market.
As LPG positions itself as a viable solution, dependence on natural gas could diminish, leading to significant transformations in the energy landscape.

Register free of charge for uninterrupted access.

Publicite

Latest news

Record-breaking 1.7 GW of US Community Solar Installed in 2024
Launch of the 100 MW Bramley Energy Storage Project in the UK
Hyvia, Renault’s hydrogen joint venture, placed in liquidation
Growth of the Lithium-Ion Battery Recycling Market: A Report from Deloitte and CAS Analyzes Key Trends
Orano envisages a long and uncertain restart for its uranium mine in Niger

Recently published in

Naturgy sees its net profit drop by 4.3% in 2024 due to weak gas prices

Spanish energy group Naturgy reports a 4.3% decrease in net profit for 2024, impacted by weak gas prices, despite results surpassing initial expectations.
Natural Gas: A Key Player in the Energy Transition Despite Economic and Environmental Challenges
Natural gas remains an essential part of the energy transition, supporting renewable energy while reducing emissions. However, challenges remain, particularly regarding carbon prices and the competitiveness of gas against coal.
en_1140290961540-11
Natural Gas: A Key Player in the Energy Transition Despite Economic and Environmental Challenges
Natural gas remains an essential part of the energy transition, supporting renewable energy while reducing emissions. However, challenges remain, particularly regarding carbon prices and the competitiveness of gas against coal.
en_1140290961540-11
Electrochaea Partners with Hitachi to Introduce Synthetic Methane in Japan
Electrochaea and Hitachi announce a strategic partnership aimed at introducing synthetic methane production technology to Japan, marking a significant milestone in the clean energy sector.
en_1140290953540-12
Electrochaea Partners with Hitachi to Introduce Synthetic Methane in Japan
Electrochaea and Hitachi announce a strategic partnership aimed at introducing synthetic methane production technology to Japan, marking a significant milestone in the clean energy sector.
en_1140290953540-12
France Becomes Europe’s Leading Hub for Russian LNG Despite Restrictions
France’s imports of liquefied natural gas (LNG) from Russia surged by 81% between 2023 and 2024, reaching €2.68 billion. With its extensive port infrastructure, France has become the primary entry point for Russian LNG into Europe, marking a shift in the market landscape.
en_1140290959540-10
France Becomes Europe’s Leading Hub for Russian LNG Despite Restrictions
France’s imports of liquefied natural gas (LNG) from Russia surged by 81% between 2023 and 2024, reaching €2.68 billion. With its extensive port infrastructure, France has become the primary entry point for Russian LNG into Europe, marking a shift in the market landscape.
en_1140290959540-10

TotalEnergies and ENI Secure a Strategic Gas Agreement Between Cyprus and Egypt

TotalEnergies and ENI have reached an agreement with Cyprus and Egypt to develop the Cronos gas field. This initiative aims to convert the resources of Block 6 into liquefied natural gas (LNG) for the European market, utilizing existing Egyptian infrastructure.
Kunlun Energy finalizes a ship-to-ship LNG bunkering in Hong Kong
The PetroChina subsidiary refuels 2,200 tons of Liquefied Natural Gas (LNG) for an international container ship, affirming Hong Kong’s strategic position. This breakthrough demonstrates regional cooperation and the expansion of LNG bunkering in Asia.
en_1140290988540
Kunlun Energy finalizes a ship-to-ship LNG bunkering in Hong Kong
The PetroChina subsidiary refuels 2,200 tons of Liquefied Natural Gas (LNG) for an international container ship, affirming Hong Kong’s strategic position. This breakthrough demonstrates regional cooperation and the expansion of LNG bunkering in Asia.
en_1140290988540
Launch of Two New Wells in the Raven Gas Field in Egypt
BP has announced the commissioning of two new wells in the Raven gas field, part of the West Nile Delta project in Egypt. This expansion aims to increase the country's natural gas production and support national energy objectives.
en_1140290998540
Launch of Two New Wells in the Raven Gas Field in Egypt
BP has announced the commissioning of two new wells in the Raven gas field, part of the West Nile Delta project in Egypt. This expansion aims to increase the country's natural gas production and support national energy objectives.
en_1140290998540
Commonwealth LNG reaches a key milestone for its U.S. export project
Commonwealth LNG has obtained a conditional non-free trade agreement (non-FTA) export authorization from the U.S. Department of Energy and a draft Supplemental Environmental Impact Statement (SEIS) from the FERC, marking significant progress toward a final investment decision in September 2025.
en_1140290984540-2
Commonwealth LNG reaches a key milestone for its U.S. export project
Commonwealth LNG has obtained a conditional non-free trade agreement (non-FTA) export authorization from the U.S. Department of Energy and a draft Supplemental Environmental Impact Statement (SEIS) from the FERC, marking significant progress toward a final investment decision in September 2025.
en_1140290984540-2

Eni extends Zohr gas field exploration in Egypt by two years

Italian oil company Eni plans to continue its exploration activities at the Zohr gas field in Egypt for an additional two years. This decision comes as the site’s production has declined in recent years, impacting the country’s energy supply.
Algeria: Sonatrach Partially Restarts Alrar Gas Complex
After a fire in November 2024, the Alrar gas complex in Illizi has resumed part of its operations. Three out of four production trains are now operational, while the rehabilitation of the last one is still underway.
en_1140290977540
Algeria: Sonatrach Partially Restarts Alrar Gas Complex
After a fire in November 2024, the Alrar gas complex in Illizi has resumed part of its operations. Three out of four production trains are now operational, while the rehabilitation of the last one is still underway.
en_1140290977540
France: Equinor and Danske fined €12 million: Companies challenge CRE’s decision
The French Energy Regulatory Commission (CRE) has imposed a €12 million fine on Equinor and Danske Commodities for market manipulation during gas transport auctions. Equinor disputes the decision and has announced its intention to appeal.
en_1140290966540
France: Equinor and Danske fined €12 million: Companies challenge CRE’s decision
The French Energy Regulatory Commission (CRE) has imposed a €12 million fine on Equinor and Danske Commodities for market manipulation during gas transport auctions. Equinor disputes the decision and has announced its intention to appeal.
en_1140290966540
TotalEnergies signs a 10-year contract to supply LNG to GSPC
TotalEnergies has entered into an agreement with Gujarat State Petroleum Corporation Limited (GSPC) to deliver 400,000 tons of liquefied natural gas (LNG) per year starting in 2026. This ten-year contract strengthens the French group's presence in the Indian energy market.
en_1140290960540-9
TotalEnergies signs a 10-year contract to supply LNG to GSPC
TotalEnergies has entered into an agreement with Gujarat State Petroleum Corporation Limited (GSPC) to deliver 400,000 tons of liquefied natural gas (LNG) per year starting in 2026. This ten-year contract strengthens the French group's presence in the Indian energy market.
en_1140290960540-9

Kazakhstan Strengthens Gas Exports to China in 2025

QazaqGaz and PetroChina have signed an agreement to increase Kazakh gas exports to China in 2025. This expansion is part of a broader strategic energy cooperation between the two countries, further solidifying their commercial and economic ties.
Entergy Texas partners with Kinder Morgan and Golden Pass LNG to secure gas supply
Entergy Texas has entered into an agreement with Kinder Morgan to ensure a reliable natural gas supply for the growing Southeast Texas region. This initiative is part of the Trident Intrastate Pipeline project, aimed at strengthening energy reliability and supporting local industrial expansion.
en_1140290948540-9
Entergy Texas partners with Kinder Morgan and Golden Pass LNG to secure gas supply
Entergy Texas has entered into an agreement with Kinder Morgan to ensure a reliable natural gas supply for the growing Southeast Texas region. This initiative is part of the Trident Intrastate Pipeline project, aimed at strengthening energy reliability and supporting local industrial expansion.
en_1140290948540-9
Acceleration of the Trans-Saharan Gas Pipeline Project: Algiers, Abuja, and Niamey Sign Key Agreements
Algeria, Nigeria, and Niger strengthen their commitment to constructing the Trans-Saharan Gas Pipeline. Three agreements were signed in Algiers to accelerate the project aimed at transporting Nigerian gas to Europe, addressing the growing demand in the energy market.
en_1140290955540-9
Acceleration of the Trans-Saharan Gas Pipeline Project: Algiers, Abuja, and Niamey Sign Key Agreements
Algeria, Nigeria, and Niger strengthen their commitment to constructing the Trans-Saharan Gas Pipeline. Three agreements were signed in Algiers to accelerate the project aimed at transporting Nigerian gas to Europe, addressing the growing demand in the energy market.
en_1140290955540-9
Maurel & Prom acquires 40% of the Sinu-9 gas permit in Colombia
Maurel & Prom has entered into a definitive agreement with NG Energy International to acquire 40% of the operated shares in the Sinu-9 gas permit in Colombia. This acquisition aligns with the group’s regional expansion strategy and strengthens its involvement in the Colombian gas sector.
en_1140290959540-9
Maurel & Prom acquires 40% of the Sinu-9 gas permit in Colombia
Maurel & Prom has entered into a definitive agreement with NG Energy International to acquire 40% of the operated shares in the Sinu-9 gas permit in Colombia. This acquisition aligns with the group’s regional expansion strategy and strengthens its involvement in the Colombian gas sector.
en_1140290959540-9

Trinidad and Tobago Strengthens Gas Revenues Despite a Drop in Exports

Trinidad and Tobago consolidates its gas strategy by securing prices above the American Henry Hub (HH) index, despite a monthly decrease in exports. Authorities are pursuing exploration projects to bolster production and diversify pricing indices. ##
Tanzanian authorities pursue tax incentives to bring an ambitious LNG project to fruition
The government of Tanzania is working to finalize an attractive fiscal framework for a $42 billion gas project. Industrial partners are awaiting these guarantees to confirm their investments, while regional competition speeds up market developments.
en_1140290946540-8
Tanzanian authorities pursue tax incentives to bring an ambitious LNG project to fruition
The government of Tanzania is working to finalize an attractive fiscal framework for a $42 billion gas project. Industrial partners are awaiting these guarantees to confirm their investments, while regional competition speeds up market developments.
en_1140290946540-8
Turkey Secures a New Gas Agreement with Turkmenistan
Ankara strengthens its energy supply with an agreement signed on February 11, 2025, with Turkmengaz. The first deliveries of Turkmen natural gas are scheduled for March, marking a strategic step in diversifying gas sources for Turkey and Europe.
en_1140290949540-8
Turkey Secures a New Gas Agreement with Turkmenistan
Ankara strengthens its energy supply with an agreement signed on February 11, 2025, with Turkmengaz. The first deliveries of Turkmen natural gas are scheduled for March, marking a strategic step in diversifying gas sources for Turkey and Europe.
en_1140290949540-8
Transnistria Bypasses European Offer with Russian-Hungarian Gas Alternative
Facing the end of Gazprom deliveries, Transnistria is now sourcing gas through a Hungarian company, financed by a Russian intermediary. The European Union had proposed aid, conditioned on reforms, which the separatist region rejected.
en_1140290948540-8
Transnistria Bypasses European Offer with Russian-Hungarian Gas Alternative
Facing the end of Gazprom deliveries, Transnistria is now sourcing gas through a Hungarian company, financed by a Russian intermediary. The European Union had proposed aid, conditioned on reforms, which the separatist region rejected.
en_1140290948540-8

European gas reserves fall below 50% as prices exceed $620

Gas prices in Europe have surpassed $620 per 1,000 cubic meters, reaching a level not seen in two years. At the same time, underground gas reserves have dropped below 50%, with withdrawal rates among the highest ever recorded for February. ##
Indian Companies Negotiate U.S. LNG to Secure Supplies
GAIL, Indian Oil, and BPCL are in talks with U.S. suppliers to purchase additional liquefied natural gas (LNG). The objective is to diversify supply sources and secure extra volumes following the lifting of U.S. export restrictions.
en_1140290952540-7
Indian Companies Negotiate U.S. LNG to Secure Supplies
GAIL, Indian Oil, and BPCL are in talks with U.S. suppliers to purchase additional liquefied natural gas (LNG). The objective is to diversify supply sources and secure extra volumes following the lifting of U.S. export restrictions.
en_1140290952540-7
Taiwan considers increasing its imports of American natural gas
Amid trade tensions with the United States, Taiwan's state-owned CPC Corporation is exploring an increase in its purchases of American natural gas. This decision could reshape its supplier distribution and redefine its international energy relations.
en_1140290945540-7
Taiwan considers increasing its imports of American natural gas
Amid trade tensions with the United States, Taiwan's state-owned CPC Corporation is exploring an increase in its purchases of American natural gas. This decision could reshape its supplier distribution and redefine its international energy relations.
en_1140290945540-7
Egypt secures 60 LNG cargoes from Shell and TotalEnergies in 2025
A 3-billion-dollar agreement has been negotiated between Egypt, Shell, and TotalEnergies for 60 LNG cargoes in 2025. The terms include an indexation on the Dutch TTF and staggered payments. Confirmation is still pending.
en_1140290943540-6
Egypt secures 60 LNG cargoes from Shell and TotalEnergies in 2025
A 3-billion-dollar agreement has been negotiated between Egypt, Shell, and TotalEnergies for 60 LNG cargoes in 2025. The terms include an indexation on the Dutch TTF and staggered payments. Confirmation is still pending.
en_1140290943540-6

Advertising

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

VERVANT

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS