Utilization of liquified petroleum gas as industrial fuel: barriers and opportunities

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2008-08-23
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Most people know Liquefied Petroleum Gas as the fuel in small-sized portable cylinders used in homes for cooking. The prospects for increased consumption in the other sectors, especially the industrial sector, remain unknown and very limited in some situations. This study addresses a series of fundamental issues related to the task of exploring the underlying factors for its under utilization in the industrial sector and the potential benefits to be derived from its consumption in this sector. It particularly seeks to identify and discuss the critical factors for the low patronage of LPG use by industries, the challenges and constraints of LPG use to the industrial user, the characteristics of LPG that makes it a preferred option for some manufacturers and make recommendations for policy. The study was exploratory, using qualitative and quantitative, case study technique. It was carried out in Tema. A total of 60 manufacturing establishments, 26 oil marketing * companies, 2 regulatory bodies and a refinery were selected for the study. Manufacturing industries were stratified into homogenous subsets using the Standard Industrial Classification and appropriate number of elements drawn from the homogenous subsets of the populations. Oil Marketing companies were selected by simple random sample. The refinery and the regulatory bodies were purposefully selected. Data was collected through in-depth interviews, questionnaire administration, document analysis and direct observation. Data collected was categorized, cross-tabulated and tabulated according to concepts in order to address the purpose of the study. In some cases, chi-square analysis was used to test relationships between some variables. Specific techniques such as pie charts, pictures and bar charts were also used. The study suggests that problems of Liquefied Petroleum Gas utilization are not confined to just one factor. Unavailability of the gas, unsuitable design of furnaces and boilers, comparatively high cost (or price volatility) of the gas and safety concerns were some of the reasons for the under utilization of the gas. There was the absence of policy on LPG utilization in the industrial sector and general lack of awareness of its applications in this sector. Thus, the non utilization of LP Gas as industrial fuel is due to financial, institutional and regulatory barriers other than technical feasibility of the technology. Meanwhile, the utilization of LP Gas would enhance energy security, reduce greenhouse emissions, reduce air pollution and enhance economic growth. The study recommends a revision of policy that would recognize the significant role that LP Gas can and should play in meeting the country's energy need. Also, information on LPG industry applications and benefits communicated to all stakeholders.
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A thesis submitted to the Department of Planning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Master of Philosophy (Mphil) Development Studies,June-2008
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