The world that we live in today is heavily dependent on energy for residential, commercial and industrial needs. With the increasing demand for energy, gas has emerged as a source of clean energy unlike the other biomass fuels. In order to use LPG gas, there is a complex process from the production to transportation and the final delivery that the gas has to go through. This makes it important to understand the journey of the gas from its source to the final consumer. This supply chain is a complex network with multiple stages, where each has an important role to play in the process. Having a clearer idea about the supply chain will give you a better understanding about the impact on LPG prices.
LPG or Liquified Petroleum Gas is a highly flammable fuel that is used for residential, commercial and industrial needs all over the world. It is generally made up of hydrocarbons along with butane or propane. Since the 1860s, it has been a highly reliable and versatile fuel source for both household and commercial needs. Because of its huge demand, it is required to be transported to various locations all across the country which can impact the LPG price. Some of the important uses of LPG gas are:
Precision, quality and expertise play an important role when it comes to production and supply of gas. The rising demand for gas as a fuel source has significantly affected the supply chain. With the huge demand, it is important that the gas is delivered safely to its destination. This is important because of the importance it holds for both residential and commercial purposes. It is thus important that you understand the entire process of the gas supply chain from its production to delivery. The basic stages are:
The first step in the gas supply chain is the production of the LPG through extraction. This is generally conducted beneath the surface of the earth or underwater where the natural gas reserves can be found. The increase in demand has prompted several companies to engage in the exploration and extraction of natural gas. These entities extract the natural gas with the help of advanced technologies like drilling rigs or fracturing the surface. On successfully retiring the natural gas, it is sent for initial processing and in order to get rid of the impurities. Impurities like water, sulphur compounds and several other contaminants are removed from the gas and sent for the next stage of processing and transportation.
Once the initial processing is done after extracting from the reserves, it is left with methane along with ethane, propane and other types of hydrocarbons. Under the processing state, it goes for further purification in order to meet the stringent standards to justify the LPG price. The objective is to purify the gas to meet the requirements of the customers. Once the gas is completely purified, it is then sent in the form of gas or liquid through pipelines or specialised tankers for proper storage and distribution.
After the gas is purified, it is sent to the next stage of storage and distribution. When the gas is received at the various distribution points, it is stored in facilities like underground storage reservoirs or liquified natural gas terminals. Keeping the gas stored in a proper manner ensures that there is a continuous supply of gas during unforeseen circumstances like high demand or disruption in production causing volatile LPG prices. This gas is then transported to various other locations through distribution pipelines that form an integral part of the supply chain. This allows the gas to be provided by the suppliers to the diverse consumers across different locations.
The last and most important stage of the gas supply chain is the delivery stage. This stage involves the delivery of gas to the customers like residential, commercial and industrial entities. With several gas companies in the market, they play an important role in ensuring that each and every entity has access to the gas for the following reasons:
On completion of the delivery, it is also important to monitor the usage for proper billing. While there are different ways that the consumers can use the gas, LPG cylinders are one of the most used means. This allows for easier transportation and usage without any kind of complication.
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One of the most important factors to consider during the entire stage of LPG gas supply is the environmental safety and considerations. With the rapid innovation in the field, efforts are made to ensure that there is less impact on the environment. With the increasing demand for the gas, measures are taken to ensure the safety during the extraction, transportation and distribution stages. There are also industry issues guidelines that help protect the entire ecosystem of gas production which can also impact the LPG price.
The rise in demand for natural gas has significantly impacted the gas supply chain and the LPG price. Efforts are being made to ensure that there is seamless flow in the process of gas production to final delivery. If you are looking to learn about the gas supply chain, this blog will help you get a clear understanding of the entire process. With gas companies like Shivgas in the market, you can expect a seamless supply of reliable and clean fuel anytime anywhere. All you need to do is get in touch with us for all your LPG needs.
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