These are turbulent times for the energy sector. In recent months, after the beginning of the Russian invasion of Ukraine, the natural gas markets in Europe have been marked by an unprecedented rise in prices. In the case of the TTF, the Dutch index that is used as a benchmark for the price of gas in Europe, the price of liquefied natural gas (LNG) reached all-time highs in September, when the price stood at 231 euros/MWh. Now, at the gates of winter, its price continues to be affected by great volatility and enormous unknowns about its evolution.
Given the exponential increase in LNG prices, propane gas (LPG) is presented as a reliable and economical energy alternative for companies and homes in times of uncertainty, since its price has remained stable in recent months. In fact, last September, the price of LPG in the Sonatrach index stood at €550/mT, while in the same month of the previous year it reached €640/mT. In contrast, the price of LNG in the TTF index reached €3,221/mT last September, while in the same period of 2021 the price stood at €618/mT, which represents an increase of 400%. .
In this context, a large number of companies are betting on propane gas, which is materializing in an increase in the demand and use of this energy source. According to data from the National Commission of Markets and Competition, between January and August 2022 the consumption of propane gas grew by 36%, compared to the same period of the previous year.
In addition to its price stability, LPG is characterized by being an energy with a high calorific value, thanks to which it is possible to generate more heat, in less time and with less fuel consumption. It is also highly efficient, which leads to greater energy savings and better use of natural resources. And it is also very versatile, since it has multiple applications and uses in homes, hotels, industry and agriculture. Likewise, propane can be transported, stored and consumed practically anywhere on the planet.
In the current climate emergency situation, it should be noted that LPG is a clean energy that can reduce CO2 emissions by up to 30%, compared to diesel or coal. To contribute to the fight against climate change and the energy transition, in a context marked by market instability, Primagas guarantees access to this source of energy and LNG, as well as renewable alternatives such as biopropane, for all households and businesses that are outside the natural gas network.
With the aim of contributing to the energy transition and achieving a carbon-free society and economy, in 2020 Primagas became the pioneer company in launching biopropane in Spain. Biopropane is a 100% sustainable energy source, made from a mixture of materials of completely organic origin, derived from the biodiesel production process, which is a good example of a circular economy.
Likewise, it is a biogas that is chemically identical to conventional propane, that is, it has the same calorific power, works with the same installations and has the same applications. In this way, in addition to homes, this fuel is compatible with the needs of heating, cooking, domestic hot water or heat for industrial processes.
On the other hand, because it is chemically identical to conventional propane, the two fuels can be stored and then delivered together, using a process known as "mass balance." This is common practice for the supply and distribution of renewable fuels used to ensure that the supply chain is as efficient and clean as possible.
However, compared to conventional propane, biopropane manages to reduce CO2 emissions by up to 80%, becoming the only propane gas that complies with the European Renewable Energy Directive (RED). This reduction is even greater if we make the comparison with other more carbon-intensive energies. For example, the use of a ton of biopropane instead of the same amount of diesel can save more than 4 cubic tons of CO2.
Under the commitment of the European Union to achieve climate neutrality by 2050, Primagas works to contribute to a decarbonized economy, offering homes and businesses a renewable energy alternative such as biopropane, which helps to tackle the path towards a new energy model that is sustainable, safe and economically competitive.
Likewise, the switch to fuels such as propane gas facilitates the energy transition and frees our society from fuels with a high environmental impact, such as diesel or coal. Primagas provides access to this clean and affordable source of energy, which has become a key alternative for homes and businesses in the rural world, given the rise in natural gas prices and the instability of the energy market.
