Transcript LPG in Brazil

ACCESS TO LP GAS FOR LOW INCOME HOUSEHOLDS
Paolo Ditta - Liquigás
October 2009
Brazil, a continental-wide country
730 million inhabitants
Europe: 10.4 MM km²
Brazil: 8.5 MM km²
190 million inhabitants
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LPG in Brazil
LPG is present at 100 percent of Brazilian municipalities
Broader than Electric Power and Water
5,563
municipalities
37,000
Authorized
Distributors
Annual Consume
per inhabitant
25.8 kg*
* Source: IBGE and ANP 2008
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LPG in Brazil
Distribution under Normal Conditions
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LPG in Brazil
Distribution under Extreme Conditions
Foto original
Portability
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LPG Availability
Since LPG is always available
within the Brazilian Territory,
why is its use so low?
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LPG in Brazil
Consume directly related to income
13%
5.0
12%
12%
12%
4.9
4.9
4.9
4.8
10%
29.5
2000
28.7
2001
9%
10%
4.7
9%
8%
4.8
4.8
25.9
26.3
25.9
25.9
25.8
25.7
2003
2004
2005
2006
2007
2008
4.6
27.1
2002
LPG P-13 Consume – million tons.
P-13 Compared to Minimum Wage - %
Source: Empresa de pesquisa energética - EPE |MINISTÉRIO DE MINAS E ENERGIA -MME
LPG Consume – Kg/inhabitant/year
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LPG in Brazil
Firewood in the Brazilian Energy Portfolio
Residential Sector
48.2
35.1
26.5
26.2
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Firewood - %
Source: Balanço Energético Nacional 2008 |Year base 2006
LGP - %
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Consume Barriers
Lack of proper credit instruments
P-13 cylinder cost is high for
low-income people
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Consume Barriers
Flex Stove
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Consume Barriers
Flex Stove
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North and Northeast Consume
LPG Consume in thousands of tons
1,414 1,431
1,348
1,234
NORTHEAST
339
343
1,290 1,304
1,355
1,401
361
324
297
307
310
321
2003
2004
2005
2006
1,453
374
NORTH
2000
2001
2002
2007
2008
Source: Authorized Fuel Distributors in accordance with ANP Administrative Rule ANP 202/99.
Notes: Data source before 2006: Product Control Statement (Demonstrativo de Controle de Produtos - DCP). From 2007: Data from Products
Movement and Information System (Sistema de Informações de Movimentação de Produtos – SIMP).
Before 2006 information considers sales, including distributors’ consume. From 2007 only sales is considered.
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LPG Consume
Average Annual Growth
Brazil
GDP Brazil
2000-2005
2005-2008
2000-2005
2005-2008
-0.94%
+1.08%
+3.05%
+4.53%
Northeast
North
2000-2005
2005-2008
-2.30%
+3.30%
2000-2005
2005-2008
-1.96%
+3.03%
Southeast
2000-2005
2005-2008
-0.20%
+0.05%
Central-West
2000-2005
2005-2008
-1.00%
+1.05%
Source: ANP
South
2000-2005
2005-2008
-0.90%
+0.18%
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Consume Impulse
North and Northeast Regions
Economic growth generates employment growth
Supplementary income through governmental mechanisms
– Example/For instance: Family Grant Program
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Consume Impulse
Government Role in the Problem Resolution
Tax reduction for home appliance products
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Consume Impulse
Liquigás Role in the Problem Resolution
P-08
P-05
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Sector Future Challenges
To develop mechanisms in order to grant subsidies to those who cannot
afford the use of LPG.
To ensure that subsidies are properly spent on LPG
Microloans for low-income people
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Benefits
End of Indoor
Pollution
Public Health Cost
Reduction
Safety
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Liquigás is a Company of Petrobras’ System
Paolo Ditta - Liquigás
Outubro 2009