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LPG stands for Liquefied Petroleum Gas - a mixture
of light hydrocarbons that are gases at normal
temperatures and pressures, but liquefy at moderate
pressures or reduced temperatures. LPG used as
automotive fuel is referred to as LPG Autogas.
The main component gases of Autogas are propane
(C3H8) and butane (C4H10). Autogas is colourless,
odourless and heavier than air. A sulphur based
chemical (ethyl mercaptan) is added to give it a
smell, so that even a very small leak can be easily
detected. LPG Autogas burns readily in air and has
an energy content similar to petrol, which makes it
an excellent fuel for automotive use.
LPG occurs naturally in crude oil and natural gas
production fields and is also produced in the oil
refining process. Australia has five sources of
naturally occurring LPG sources - Bass Strait
(1,050) kilotonnes (kt)), Cooper Basin in Central
Australia (410 kt), North West Shelf (810 kt)
Kwinana in Western Australia (330 kt) and Surat
Basin in Queensland (16 kt).
Refinery production is from seven refineries, Bulwer
Island (BP) and Lytton (Caltex) in Queensland, Clyde
(Shell) and Kurnell (Caltex) in New South Wales,
Altona (Exxon Mobil) and Geelong (Shell) in
Melbourne and Kwinana (BP) in Western Australia.
Australia produces currently about 3,300 kt of LPG
annually. Of these volumes, 80% is naturally
occurring (i.e. extracted from oil and gas
production) and 20% is extracted from crude oil in
the refining process. Australia's production of LPG
is projected to grow to 5,024 kt by 2020.
Autogas is typically at least 50 per cent cheaper
than other automotive fuels. LPG Autogas prices move
in a similar manner to petrol prices. The price
fluctuations reflect the highly competitive nature
of the industry.
LPG Autogas powered vehicles emit significantly
fewer greenhouse gases and other pollutants than
petrol-powered equivalents. LPG typically has around
20 per cent less ozone forming potential (a measure
of the tendency to generate photochemical smog),
between 10 and 15 per cent lower greenhouse gas
emissions and only one fifth air toxics emissions.
LPG Autogas vehicles operate even more relatively
cleanly when the engine is cold. Given that most
urban-use vehicles are often used for very short
journeys this means a significant reduction in “real
world” emissions.
LPG Autogas is also much cleaner than diesel. The
dirty black smoke that we see coming from diesel
vehicles is particulates – a known cause of sickness
and deaths. By replacing a diesel engine with an LPG
Autogas-powered equivalent, over 90 percent of this
particulate matter would be eliminated.
Last year the Federal Government recognized the
environmental benefits of running motor vehicles on
Autogas by announcing the fuel would remain
excise-free until 2011.
Even after that date, excise will be gradually
applied in annual increments of 2.5 cents per litre
until it reaches a ceiling of 12.5 cents per litre
in 2015.
In comparison, the current excise on petrol in
38.143 cents per litre |
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