International LP Gas Seminar 2016, Tokyo
Korea LPG Industry
March 3, 2016
KLPGA Overview
What We Do
Policy
Legislation
R&D
R&D
• Advanced LPG Vehicle Tech.
• Develop New LPG Market
Policy
• Keep Price Competitiveness
and Taxi Market
Networking
Car
Maker
Expert
Govern
ment
Publicity • Increase good image of LPG
Networking
Publicity
KLPGA
• Keep Good Relation with
various stakeholders
2
NGO
Taxi
Industry
Agenda
3
Agenda
4
Consumption of Energy by sources
2005y
2015y(E)
171 MTOE
212 MTOE
<Korea Energy Economic Institute>
5
LPG Demand by sector
LPG Supply by sources
(As of end 2015(E))
Unit : Million ton, as of end 2015(E)
7.7 MT
Import(62%)
5.4 MT
9%
22%
21%
Refinery(38%)
3.3 MT
49%
8.7 MT
6
<Korea Gas Corporation>
LPG Annual Demand Trend by sector
(1,000 tons)
2005 vs 2015
Industrial
14%
Chemical
40%
Residential △24%
7
Transport
△7%
Total
△3%
Agenda
8
In terms of the LPG vehicles’ number, Korea is the fourth country in
the world.
Korea is the first Autogas Consuming country.
LPG cars Top-5 (2014y)
Autogas Consumption Top-5(2014y)
(Unit : 1,000 cars)
(Unit : 1,000 tonnes)
3,935
Turkey
3,000
Russia
Korea
India
2,900
Russia
2,750
Poland
3,780
Korea
2,838
Turkey
2,410
1,645
Poland
2,100
Italy
* Source : The Statistic review of World LPG industry(WLPGA)
9
1,570
2.3 million LPG cars are running, equal to about 11% of total vehicles.
Types of LPG Vehicles in Use
Types of Vehicles Registered
(Unit : 1,000 cars)
(Unit: 1,000 cars)
Rent car
(8%)
Diesel
8,622
(42%)
Etc.
121
(0.6%)
Taxi
(11%)
Truck
(7%)
LPG
2,276
(11%)
20,990
(’15.12)
RV
(6%)
Gasoline
9,965
(48%)
Growth rate
Compared to 2014
Gasoline
Diesel
LPG
2.7%
8.6%
∆3.4%
10
2,276
(‘15. 12)
Sedan
(87%)
Sedan
except for
taxi & rent car
(68%)
The number of LPG cars are gradually decreasing since 2010.
- LPG cars decreased by 7% compared with 2010, especially by 55% of RVs.
(1,000 cars)
LPG Car Trend
2010 vs 2015
Increase
of Cars
Rate
△67
△29%
RV
△173
△55%
Taxi
0
0%
61
4%
△ 179
△7%
Truck
Sedan
Sedan&Rent car
Total LPG cars
11
Change
Agenda
12
There are 4 Key Factors highly affecting Korea Autogas Market.
- Despite of favourable fuel taxation, a large range of OEM models and
infra, LPG cars are decreasing because of ban on the use of LPG cars.
Negative Factor
Positive Factor
Fuel Taxation Policy
Regulation on the use of
LPG OEM Models
LPG cars
Extensive Infrastructure
13
Due to favorable fuel taxation, LPG is keeping price competitiveness.
- LPG price is about 53% of gasoline and 62% of diesel.
Fuel Price Ratio Trend
Tax on Transport Fuel
Year
Relative Price Ratio
(Gasoline : Diesel : LPG)
Before
1st
Reform
~2001
100 : 60 : 32
1st
Reform
2001
100 : 75 : 60
2nd
Reform
2005
100 : 85 : 50
Diesel : LPG
69%
(U$/liter)
14
Gasoline
LPG
Diesel : :LPG
58%
62%
Total 18 Models of LPG cars are selling at present.
- They are manufactured by Hyundai, Kia, Renault Samsung and GM Korea.
LPG OEM Models (HMC 5, KIA 6, RSM 3, GM 4)
Mini
Cars
Middle
Cars
Large
Cars
Open to Public
Morning
(Bi-Fuel)
Ray
(Bi-Fuel)
Damas
Bongo 3
Labo
Truck
LF Sonata
Grandeur
YF Sonata
K7
SM5
SM6
SM7
RVs
SUVs
Available Only to Permitted Users
15
K5
Avante MD
All New
Carens
Olando
Malibu
Grand Starex
Along with increase of LPG cars, filling station increased up to 2,000.
Extensive infrastructure helps stimulate the growth of Autogas Market.
LPG cars and Infrastructure
(unit)
(1,000 cars)
LPG cars
Infrastructure
16
Government continues to place restrictions on the use of LPG cars.
It has become the major reason to decrease of LPG cars.
History of Permission on use of LPG cars
Who can buy LPG cars
Year
Taxi
1982
Official car of Local Government
Car for Persons of National Merit
Car for the Handicapped
1983
1988
1990
Rent car, Trucks & Vans/Buses
1995
Official vehicle and Test vehicle for Research
2006
Mini Car(1,000cc or less), Hybrid Car
2008
Car used by the disabled for more than 5 years
2011
(*) Sedan type Private Car is still banned to use LPG at present, except above persons.
17
Agenda
18
Taxi drivers complained against high LPG price from 2010 to 2013.
They urged the government to provide a subsidy for a diesel taxi.
LPG Car and Taxi
(As of 2015)
Taxis
Cars
249
(11%)
Trend of LPG Price
(KW/L)
1,425
(40%)
2,027
(89%)
2,138
(60%)
Number
of LPG cars
Autogas
Demand
(thousand cars) (thousand tonnes)
19
Highest LPG price
1,102
(in 2012)
Government Policy of Diesel Taxis
Ministry of Environment
Ministry of Land&Transport
Permission for diesel taxi
Regulations on a diesel taxi
(When) as of September, 2015
Expansion of Car Maker’s emission
warranty period
(To Whom) diesel taxis that meet Euro-6
(~‘14) 160,000km → (‘15~) 192,000km
(How) Provide a subsidy of KW 345 for
a diesel taxi
Plan to introduce additional regulation
∙ Increase the number of inspection times
∙ Add NOx emission in inspection items
(Limit) up to 10,000 cars a year
20
Voices of Stakeholders
Ministry of Environment
Car Manufacturer
∙ Implementing a reglation to manage the diesel taxi
∙ Concerning government’s stricter regulations on diesel taxi
and burden on taxi’s durability
Taxi Industry
∙ Urging car manufacturers to produce diesel taxi
LPG Industry
∙ Emphasizing diesel emission’s bad effect of human health
NGO
∙ Urging government to withdraw the introduction of diesel taxi
21
Sales Volume of LPG Cars (estimated)
[1,000 cars]
200
212 217
188
152
150
119
173
135
169
178
153
179
164 174
160
148
165
130 125
170
+ 30,000 cars annually
100
Reference
0
2001
2003
2005
2007
2009
22
2011
2013
2015
2017
2019
Agenda
23
We are developing LPDI system in cooperation with Car makers.
Renault Samsung Motors launched LPG cars equipped with Toroidal
tank in 2015, supporting by KLPGA.
[LF Sonata 1.4 T-LPDI]
Brand
Hyundai Motors
Renault Samsung
Specification
1.4 Turbo LPDi Engine
2.0 LPDi Engine
Model
LF Sonata
SM5
Development
Target
Improve output 5%
Reduce CO2 10%
Improve F.E 10%
Reduce CO2 10%
Increase F.E 10%
24
SM5 Nova LPe 2.0
(Jan. 2015)
SM7 Nova LPe 2.0
(Aug. 2015)
We are developing various LPG technologies and seeking the way to
create new LPG market.
- LPG forklift, Power generation and GHP for agriculture are under development.
- We are also studying the development of LPG boat’s technology and regulation.
Development of New LPG Demand
Forklift
GHP
(Agriculture)
Power
Generation
25
LPG Boat
To Shift LPG’s image from “Clean” to “Economical and Powerful
Energy”, KLPGA is promoting various Public Relation Activities.
LPG
Radio Announcement
Press Conference
Economical
Powerful
2015 WLPGA Autogas Summit
Exhibition
26
Agenda
27
Korea LPG industry will be recovered by
Keeping Price competitiveness owing to Shale Gas and Tax policy
Investing for Advanced LPG Technology on Autogas and Application
Lifting up the restriction on Use of LPG Cars
and developing New Market
28
Thank You
Please contact me to huhjd@klpg.or.kr