Liquefied petroleum gas ("LPG") is a fossil fuel made during natural gas processing and oil refining. Two thirds of the LPG people use is extracted directly from the earth. The rest of it is manufactured indirectly from crude oil refining. Chemically LPG is a mixture of two flammable but nontoxic gases called propane and butane.


LPG is liquefied in a tank or bottle in order to have more and take up less space. If you could see inside an LPG tank or bottle, you'd see a liquid not a gas. That's because the propane and butane have been compressed so they take up almost 275 times less space than normal. By comparison, the air in a typical car tire is pressurized to roughly 2–3 times normal air pressure—so the gas in an LPG tank is squeezed about 100 times more. LPG takes up relatively little space compared to the actual amount of energy it contains.

LPG Uses

There are more than 1,000 applications of LPG. Hundreds of millions of people currently use LPG and depend on it for thousands of applications: in commercial business, industry, transportation, farming, power generation, cooking, heating and for recreational purposes. It is referred to as the world’s most multi-purpose energy.

  • Several billion people around the world use LPG at home for applications such as cooking and heating.
  • LPG is the preferred alternative automotive transportation fuel and is increasingly being used as a marine fuel.
  • Millions of businesses rely on LPG. It is the ideal fuel choice for businesses that are not connected to an existing electrical grid.
  • Farmers across the world rely on LPG to meet the challenge of staying competitive in the modern agricultural environment
  • Other industries such as aerosol, refrigeration, and chemical feedstock all look to LPG to provide sustainable fuel alternatives


LPG is cleaner than coal and oil and an alternative to gasoline. It makes less air pollution (fewer soot particulates, nitrogen oxides, and sulfur) and produces fewer emissions of carbon dioxide (which cause global warming).  LPG is also highly portable, making it a convenient source of energy usable in remote places where ordinary gas supplies are unavailable or have been interrupted.


Global seaborne trade increased

from 85.4 mmt in 2015 to 117.5 mmt in 2022

US exports increased

from 20.5 mmt to 52.2 mmt over the same time period

9% increase

in seaborne LPG imports into India in 2022

Planned PDH plants in China

expected to add 25 MTPA of demand by 2025


International seaborne LPG transportation services are generally provided by two types of operators: LPG distributors and traders and independent shipowner fleets like Dorian LPG. Traditionally the main trading route in our industry has been the transport of LPG from the Arabian Gulf to Asia. With the emergence of the United States as a major LPG export hub, the U.S. Gulf to Asia has become an important trade route.

Vessels are generally operated under time charters, bareboat charters, spot charters, or contracts of affreightment. LPG distributors and traders use their fleets not only to transport their own LPG, but also to transport LPG for third-party charterers in direct competition with independent owners and operators in the tanker charter market. LPG transportation services operate in markets that are highly competitive and based primarily on supply and demand of available vessels. Generally, competition for charters is based upon charter rate, customer relationships, operating expertise, professional reputation and vessel specifications (size, age and condition).

Very large gas carriers ("VLGCs") like those owned by Dorian LPG are the largest class of vessels in the global LPG fleet.  These vessels are highly- engineered to meet the exacting demands of a customer as well as to comply with strict environmental regulation, including emissions regulations.  Dorian LPG's  modern, ECO-class fleet of VLGCs, combined with its high level of crew training and strict vessel maintenance program has made it a preferred provider of LPG transportation services.


  • 1 US shale revolution has created a fundamental shift in trade flows
  • 2 Rapid growth in both LPG supply and demand creating new dynamic
  • 3 Bifurcation of major supply sources makes LPG increasingly competitive
  • 4 VLGCs are a critical link in the global LPG supply chain