Niki Cutts explains the divergence of supply and demand in the LPG market

US shale exploration has resulted in the increased supply of LPG, which is of keen interest to Niki Cutts, who has taken an interest in more environmental forms of energy for years. This surge resulted in an 8% increase in US production in 2012 and 4% in the Middle East, typically from gas processing plants. Largest increases in consumption were in the Asia Pacific region, fueled by increased economic activity and population growth. Conversely in mature markets such as Europe, there was a drop in demand arising from economic stagnation.

However, supply is exceeding demand. As new production facilities are opened around the world, this situation will become more apparent. It is for the industry to ensure that LPG is used in its widest applications.

Niki Cutts was a co-author for an energy management report for the Financial Times and has been developing a career in energy ever since.