1993-10-01

Assessment of LPG Transportation and Marketing Infrastructure 932816

An analysis of the additional fuel storage and distribution infrastructure that would be required if 51.9 billion liters (13.7 billion gallons) of LPG were used as transportation fuel in 2010 was completed. The LPG for transportation sector use was assumed to be produced from a network of LPG-producing refineries and gas plants similar to the one currently in place, but incorporating expanded production capabilities. Using the PADD districts as a guide, the net flow of LPG from the producing regions to the consumption regions was estimated. The LPG fuel was assumed to be moved by both new and existing systems of pipeline, barges, rail cars, and tank trucks. Additional storage capacity and other modifications were estimated to be required at LPG bulk terminal and plant locations. Approximately 15,800 retail service stations incorporating LPG storage and dispensing equipment were deemed necessary for supporting the assumed LPG transportation fuel sector in 2010. The total national cost for the storage and distribution system requirements, as well as the service station modification costs for dispensing LPG to motor vehicles, was estimated between $4.17 and $6.01 billion. A retail price of between 21 and 30 cents per liter ($0.80 to $1.14 per gallon) of LPG was also estimated. In gasoline equivalent units, this cost for LPG motor fuel would be 28 to 41 cents per liter ($1.08 to $1.56 per gallon).

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