Tuesday, May 5, 2015

Geographical expansion is the integral strategy adopted by the leading players to boost their growth in the Global Liquefied Petroleum Gas Market

“Liquefied Petroleum Gas Market: By Application (Residential/Commercial, Chemical, Industrial, Auto Gas, and Others); By Sources (Refineries, Associated Gases, and Non-Associated Gases); and By Geography - Global Forecasts till 2019”

The major participants operating in the global liquefied petroleum gas market are Gazprom (Russia), Sinopec (China), Petro China (China), Exxon Mobil (U.S.), Royal Dutch Shell (Netherlands), Saudi Aramco (Saudi Arabia), Petronas (Malaysia), and British Petroleum (U.K.), among others. The top four players accounted for over 37% of the global liquefied petroleum gas market in 2014.
The key players of global LPG market intends to focus on strategies such as expansion, supply agreements, and new product launch to increase their customer base and market share in the global market. Gazprom is the market leader in the global LPG market and holds the 12% of the market share as of 2014. Its product portfolio includes exploration, production, distribution, and transportation of gas. Gazprom expanded its business by planning to build a compressor station in Yety-Purovskoye field with a large capacity of one billion cubic meters of gas per year. 
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This expansion helps the company to increase its market presence and to be able to supply more LPG to its end-users. In other agreement, Gazprom signed a strategic cooperation agreement with Weatherford International (Ireland) to share knowledge and technical insights over the LPG business.
This agreement is expected to help Gazprom to move into the right direction with right technology, improved efficiency, and streamlined operations in the LPG market. Gazprom entered into various other agreements with CNPC (China) to supply natural gas for a period of 30 years.

To sustain inorganic growth, the leading players of the global liquefied petroleum gas market focuses on partnerships and expansions. For instance, in August 2014, Sinopec signed an agreement with YPF (Argentina), a state energy company, to explore and develop oil & gas wells in Mendoza, Argentina. This agreement is expected to help to increase the company’s geographic presence in Argentina, and increases the market revenues of the company. The company invested $402 million in the areas of Ecuador to jointly develop the Block 15 offshore oilfield with Sinopec International Petroleum Services Ecuador SA.

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