Emerging Economies NEED ENERGY TO GROW…CLEANER FUELS SAVE FORESTS AND IMPROVE LIVES
Without access to cleaner fuels, poorer nations turn to burning coal and wood, which exacerbate deforestation and soil erosion problems in addition to producing more CO2 and other harmful products. For example, burning propane emits 35% less CO2 than wood.
In many developing countries, governments are promoting cleaner fuels such as LPG (propane & butane) tanks instead of wood and coal.
Their stated goals are: Stopping deforestation and accidental deaths from smoke inhalation, cleaner air in urban centers, and ‘Liberating’ people from chore of collecting wood (essentially raising standards of living and increasing lifespans). Click here for air quality comparison.
Pounds of CO2 per MMBtu
MMBtu/MWh
Efficiency
Pounds of CO2 per MWH
Coal
210
11.0
31%
2,310
Diesel fuel and heating oil
161
9.5
36%
1,532
Propane
139
7.6
45%
1,056
Natural gas
117
7.0
49%
819
•In India, the government has implemented the Ujjuwala program in 2016, which subsidizes LPG usage by poor families; 32 million households converted to LPG in 2016 and another 70 million are targeted by 2019.
•In Nigeria, 40 million houses were to be converted to LPG starting in 2017. The program is expected to take 24 months for implementation.
•In Indonesia where there is a significant deforestation problem, 90% LPG household coverage was achieved in 2017.
•In China, LPG demand is expected to increase by 50% between 2014 and 2018 and most of it is for domestic heating and cooking. The Chinese government ruled out the use of coal stoves for example in an effort to clean up air pollution in large cities.
But where is all this LPG coming from? It is predominantly produced in the U.S. and exported to the rest of the world.As a matter of fact, Enterprise Products is now the largest exporter of LPGs in the world. Enterprise,like many midstream companies, has made significant investments in the infrastructure needed to support such world scale exports. About half of the LPG consumed in Asia is imported and 40% of these imports came from the U.S.
BENEFITS OF NGLS IN THE PETROCHEMICAL INDUSTRY AND TO GLOBAL CONSUMERS.
WHERE DOES ENTERPRISE PRODUCTS FIT in?
Globally, about 35% of NGLs are consumed as a feedstock for producing plastics and chemicals; many of these are transformed into ubiquitous consumer products that are necessary for our everyday life (bottles, containers, paint, fibers, etc.).
Advanced plastics and coatings enables more efficient planes, cars, houses and appliances, thus reducing energy usage and corresponding CO2 emissions.
WHERE DOES ENTERPRISE PRODUCTS FIT IN? In addition to the logistics services mentioned previously, Enterprise also owns and operates a Propane Dehydrogenation (“PDH”) facility that produces 1.65 million pounds of propylene annually. Propylene is environmentally friendly in many ways and often replaces steel and steel products in a variety of applications such as packaging for consumer products and plastic parts for various industries, including the automotive industry, appliances and textiles.
MAKING PLASTICS IS NOT CARBON-INTENSIVE
Contrary to many believes, the process of making plastics is not a significant source of CO2 emissions; making plastics involves reforming or rearranging hydrocarbon molecules but not a combustion process whereby CO2 is emitted in the atmosphere.
WHERE DOES CO2 AND OTHER GREENHOUSE GASES COME FROM?
India and China have some of the worst air quality in their cities. Both countries have implemented some severe measures to improve their citizens’ health
The Air Quality Index is based on measurement of particulate matter (PM2.5 and PM10), Ozone (O3), Nitrogen Dioxide (NO2), Sulfur Dioxide (SO2) and Carbon Monoxide (CO) emissions.
Enterprise Products has a fundamental view that all hydrocarbons have a long-term role in energy consumption far into the future.
The International Energy Agency ("IEA"), projects oil demand to grow until 2040.
Here's why:
On a global scale, carbon dioxide ("CO2") was ~77% of greenhouse gas emissions, according to the World Resources Institute. for more information.
CO2 emissions from energy usage in the United States have declined steadily since 2007 (See graph of U.S. versus China for illustrative purposes). Thanks to the shale revolution, natural gas production has steadily increased and displaced much dirtier coal and fuel oil in power generation. Also, starting in 2012 we saw increasing renewable energy generation – both wind and solar – which further helped reduce CO2 emissions.
Oil Type
API Gravity
Sulfur Content
Country
U.S. Shale
38-45
0.2-0.4%
USA
Arab Medium
30.2
2.59%
Saudi Arabia
Arab Extra Light
39.4
1.09%
Saudi Arabia
Maya
22.0
3.33%
Mexico
Cerro Negro
16.0
3.34%
Venezuela
Source: EPD Fundamentals
Enterprise has 18 deep-water docks capable of exporting hydrocarbons.
On the downstream side, U.S. refiners are the world’s best in terms of sophistication and ability to produce ultra-low sulfur fuels that are the least damaging to the environment. Consequently, the U.S. benefits from a significant reduction in sulfur pollution made possible by low sulfur oils, NGLs and natural gas.
Natural Gas Liquids (“NGLs”): U.S. shales also produce growing volumes of NGLs (ethane, propane, butane and natural gasoline). A large portion of these NGLs is used as feedstock for producing various consumer products, such as plastics, and used as clean burning fuels for space heat and cooking, and blending into vehicle fuels.
Enterprise Products is the prominent midstream company in terms of logistics services including transportation, processing, storage, distribution and exports of hydrocarbons. We are an essential link between production and consumption and we are optimistic about the continued growth of this industry.
Click Boxes Below for More Information
Emerging Economies
Emerging Economies NEED ENERGY TO GROW…CLEANER FUELS SAVE FORESTS AND IMPROVE LIVES
Without access to cleaner fuels, poorer nations turn to burning coal and wood, which exacerbate deforestation and soil erosion problems in addition to producing more CO2 and other harmful products. For example, burning propane emits 35% less CO2 than wood.
In many developing countries, governments are promoting cleaner fuels such as LPG (propane & butane) tanks instead of wood and coal.
Their stated goals are: Stopping deforestation and accidental deaths from smoke inhalation, cleaner air in urban centers, and ‘Liberating’ people from chore of collecting wood (essentially raising standards of living and increasing lifespans).
Pounds of CO2 per MMBtu
MMBtu/MWh
Efficiency
Pounds of CO2 per MWH
Coal
210
11.0
31%
2,310
Diesel fuel and heating oil
161
9.5
36%
1,532
Propane
139
7.6
45%
1,056
Natural gas
117
7.0
49%
819
•In India, the government has implemented the Ujjwala program in 2016, which subsidizes LPG usage by poor families; 32 million households converted to LPG in 2016 and another 70 million are targeted by 2019.
•In Nigeria, 40 million houses were to be converted to LPG starting in 2017. The program is expected to take 24 months for implementation.
•In Indonesia where there is a significant deforestation problem, 90% LPG household coverage was achieved in 2017.
•In China, LPG demand is expected to increase by 50% between 2014 and 2018 and most of it is for domestic heating and cooking. The Chinese government ruled out the use of coal stoves for example in an effort to clean up air pollution in large cities.
But where is all this LPG coming from? It is predominantly produced in the U.S. and exported to the rest of the world. As a matter of fact, Enterprise Products has made significant investments in the infrastructure needed to support such world scale exports. About half of the LPG consumed in Asia is imported and 40% of these imports came from the U.S.
Source: IHS
Source: IHS
Petrochemical Comsumption
All of these are petrochemical-based products
BENEFITS OF NGLS IN THE PETROCHEMICAL INDUSTRY AND TO GLOBAL CONSUMERS.
Globally, about 35% of NGLs are consumed as a feedstock for producing plastics and chemicals; many of these are transformed into ubiquitous consumer products that are necessary for our everyday life (bottles, containers, paint, fibers, etc.).
Advanced plastics and coatings enables more efficient planes, cars, houses and appliances, thus reducing energy usage and corresponding CO2 emissions.
Where does Enterprise Products fit in?
In addition to the logistics services mentioned previously, Enterprise also owns and operates a Propane Dehydrogenation (“PDH”) facility that produces 1.65 million pounds of propylene annually. Propylene is environmentally friendly in many ways and often replaces steel and steel products in a variety of applications such as packaging for consumer products and plastic parts for various industries, including the automotive industry, appliances and textiles.
Learning the Facts
Where does CO2 and other greenhouse gases come from?