LPG SAFETY, INNOVATION, AND MARKET GROWTH - Clean Cooking ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
LPG SAFETY, INNOVATION, AND MARKET GROWTH
ACKNOWLEDGEMENTS
The Clean Cooking Alliance (“Alliance”) works with a Menecon Consulting is an independent, UK-based
global network of partners to build an inclusive industry energy-consulting firm offering independent and
that makes clean cooking accessible to the three professional advice on public and private sector
billion people who live each day without it. Established clients on all aspects of energy policy, strategy,
in 2010, the Alliance is driving consumer demand, and economics, including climate change, other
mobilizing investment to build a pipeline of scalable environmental challenges, and access to modern
businesses, and fostering an enabling environment energy services.
that allows the sector to thrive. Clean cooking
transforms lives by improving health, protecting the The Alliance, specifically its Private Sector and
climate and environment, empowering women, and Investment team led by Peter George with Seema
helping consumers save time and money. Patel, and its Strategy and Development team, led by
Samiksha Nair with Sheridan Hyland, commissioned
ENEA Consulting (“ENEA”) is an independent strategy this report. The Alliance and ENEA would like to thank
consultancy specialized in the energy transition and all the partners who contributed their content, time,
sustainability, with offices in Paris, Melbourne, and resources, and expert insights.
Hong Kong. ENEA Consulting works with a wide range
of actors in the energy value chain, from global energy The Alliance is grateful to Chevron Corporation, whose
majors to major investors, from entrepreneurs to support made this report possible.
international institutions. In the energy access space,
the firm has provided consultancy services to more
Photo by Gaelle Marcel on Unsplash than 60 companies, social enterprises, NGOs, and
public institutions to help them increase access to
Cover photo: World LPG Association energy in developing countries.
1 | CLEAN COOKING ALLIANCE ACKNOWLEDGEMENTS | 2
EXECUTIVE SUMMARY Specifically, there are safety considerations at each
stage of the journey along which an LPG cylinder
Developing these frameworks and improving enforce-
ment can often be a long and complicated process,
travels: from the cylinder factory, to the refilling plant, to requiring buy-in from stakeholders along the LPG value
the final household end user. Safety is also important chain, as well as effective and rigorous enforcement
in the supply of the fuel itself from the import terminal, of established regulations. The effectiveness of these
Issues related to LPG safety, both real and perceived, inhibit the uptake of LPG
refinery or gas-processing plant to the refilling plant. regulations becomes particularly challenging once
by consumers, slowing potential market growth, and contributing to lack of At each stage, there are safety risks–notably in refilling illegal practices become pervasive, as is the case in
confidence in return on investment for both investors and companies. Innovative cylinders, transporting them to local distributors and certain key markets including, but not limited to Kenya,
then customers, and using them in the kitchen. South Africa, and India.
technologies and other potential solutions are emerging that both purposefully
and indirectly alleviate safety concerns. It is vital that all stakeholders involved in Technical innovations to overcome safety issues
the distribution, regulation, and consumption of can be an effective complementary approach to
LPG have a clear view of the various safety regulation and education and training by enhancing
When paired with robust policies and strong regulatory though several studies have demonstrated that LPG challenges and potential mitigation measures to safety along the LPG value chain and addressing
enforcement, complemented with consumer edu- is safer in practice than most other cooking solutions, encourage increased fuel use and investment in barriers to market penetration, expansion, and
cation and awareness raising, the effectiveness particularly kerosene. Aside from the human suffering supply networks. commercialization. Several innovative technologies
and market penetration of these technologies is and financial cost involved, LPG-related accidents and business models are already emerging which
amplified. In other words, prioritizing interventions to undermine consumer confidence in the fuel. The » A strong regulatory framework is crucial to hold the promise of reducing operating costs and
address safety issues can serve as an accelerant for dramatic nature of some LPG accidents has led to ensuring public safety by imposing and enforcing increasing the attractiveness for investors, in addition
investment and market growth. sensationalist reporting, which has stoked public strict rules on the handling of LPG along the to enhancing safety along the various stages of the
fears about LPG. cylinder supply chain. In particular, policies and LPG cylinder and fuel supply chain. In most cases,
Switching to LPG for household cooking could regulations that impose the branded cylinder these solutions are being pursued by private sector
bring environmental, economic and health benefits Unsafe practices around LPG can impede investment recirculation model,1 whereby distributors and companies, in some cases with the explicit support of
to billions of people. Over a third of the global flows, business growth, commercialization and marketers are responsible for cylinder safety— government authorities. Based on an in-depth industry
population continues to rely primarily on non- market entry. For LPG businesses and large including inspection, maintenance, and replace- survey, eight categories of innovations have been
sustainable traditional biomass and other polluting multinationals in particular, the risks and costs ment—throughout their lifetimes, are vital to identified and differentiated into two groups, each with
fuels such as kerosene and coal for cooking, causing associated with LPG safety has reduced appetite providing incentives for re-fillers to inspect and different time-to-market horizons: low tech solutions
indoor air pollution that causes an estimated 3.8 for the sector, thereby reducing the uptake of LPG, repair cylinders properly. that can be implemented at relatively low cost, and
million premature deaths each year. By contrast, particularly in sub-Saharan Africa. In order to build a more complex and “game-changing” technologies
LPG burns very cleanly and does not contribute to dynamic and financially sustainable clean cooking » Awareness raising and education can bring that hold promise in the longer term.
indoor air pollution. It is also convenient and efficient. industry, for both LPG and other clean cooking fuels, down accident rates substantially and eradicate
Although LPG is derived from fossil fuels, switching ensuring effective safety best practices is critical. New misunderstandings and misconceptions about Low-tech solutions
from traditional fuels can reduce net carbon dioxide innovations that can make LPG more affordable while safety.
(CO2) when biomass is not replaced once it has been addressing safety concerns have the potential to spur Four lower-tech solutions represent opportunities
harvested. However, reaping the benefits of LPG private sector investment. » Together, these approaches can reassure for more immediate results to increase safety and
requires building profitable businesses that can scale consumers that cooking with LPG is safe and give promote the uptake of LPG, at a relatively affordable
and instill long-term confidence in both investors and Addressing issues related to safety can be both private sector investors–from local distributors cost for companies and consumers:
consumers. an asset and liability to the growth of LPG as a to large energy majors–confidence that the
widespread and viable clean cooking fuel. LPG LPG market will be healthy enough to generate » Home delivery of cylinders, which, in addition to
For all the benefits that LPG can bring, many businesses, concerned about safety, may choose adequate returns on investment. offering convenience to the customer, permits
households are reluctant to make the switch not to invest in LPG given the cost of managing
because of concerns about the safety of handling safety challenges and reputational risks. Strategies 1
In the branded cylinder recirculation model (BCRM), government-licensed LPG marketers invest in and own the cylinders. They are
and using the fuel. Like all other forms of energy, LPG that prioritize safety considerations are complex. To responsible for cylinder safety—including inspection, maintenance, and replacement—and refilling throughout its lifetime. In the customer-
controlled cylinder model (CCCM), end users own the cylinders and bring them to filling stations to be refilled as needed. With CCCM,
is potentially hazardous if mishandled or misused. be effective, safety standards and precautions must cylinders in circulation tend to become unsafe due to a lack of incentives for the re-filler to inspect and repair the cylinders, as well as a
Accidents associated with LPG can and do occur, be adopted by actors throughout the value chain. lack of clear rules and incentives for customers to have cylinders properly inspected and repaired.
3 | CLEAN COOKING ALLIANCE EXECUTIVE SUMMARY | 4
professional delivery personnel to correctly » Home delivery increases consumer satisfac- Advanced technologies
install LPG cylinders, teach customers how tion and customer loyalty, as well as safety.
to cook safely with LPG, and reassure them Four emerging, innovative technology-enabled sol-
about safety. Home delivery is increasingly » Cylinder tracking improves supply-chain utions also have the potential in the longer term to
commonplace in developing countries, already management and reduces operational costs, make a significant contribution to increasing safety,
reaching 55% of Kenyan LPG customers, and as well as ensures supply chain safety. as well as offering other benefits to distributors and/
95% of those in Brazil. or consumers:
» Digital media not only can be used to
» Cylinder tracking, such as through QR codes transmit safety messages, but also cooking » Composite cylinders, which are lighter, explosion-
and radio-frequency identification (RFID), which tips, special promotions, and other methods proof, corrosion-free, provide higher mechanical
improves the traceability of cylinders along their to increase customer loyalty. resistance, and are sometimes translucent
lifecycle and enhances safety during the transport (making the gas level visible), can enhance
and refilling of cylinders, while improving oper- » Advanced cooking equipment can not only safety, as well as make cooking with LPG more
ational management for companies. These codes give customers more reassurance on safety, convenient and easier for households. They are
are becoming mandatory in many countries. but also create an additional revenue stream increasingly being adopted in some advanced
for distributors. economies and are starting to be rolled out in
» Innovative digital media, such as social networks key emerging markets. They undoubtedly rep-
and content sharing platforms, which allows » Investors should study businesses that resent the future of LPG cylinders, but their
businesses and authorities to transmit safety are developing technologies in these areas. relatively high cost is likely to be a barrier to their
and other marketing messages to customers via Increased investment is needed to support their adoption in lower-income developing countries in
the Internet and mobile phones, even in remote uptake across the developing world, particularly the near term.
areas, to educate them and raise their awareness in lower-income countries. In addition, these
about LPG safety. technologies all have the chance to be deployed » Smart metering systems / pay-as-you-cook
at scale to the hundreds of millions of households business models, which use smart valves that
» Advanced cooking equipment, such as ad- already using LPG, representing a unique allow end customers to keep track of their exact
vanced hoses and improved valves, which can investment opportunity. gas consumption and pay with mobile money for
significantly reduce the incidence of gas leak- small volumes of LPG according to their needs
ages and accident rates in homes, often at very » Governments and development partners should (hence the “pay-as-you-cook” expression). In
low cost. These technologies are becoming com- support innovation in these areas through project addition to improving affordability by reducing
monplace in larger emerging markets such as funding and strategic partnerships. In the case the upfront cost of LPG, these systems also
India but are not yet widely used lower-income of digital awareness campaigns, public funding increase safety by allowing firms to better track
countries. can be used. Development partner finance can cylinder location and customer usage, as well as
also be used to fund pilots of these technologies integrating home delivery. The business model
With respect to these lower-tech solutions, the in existing distributors, to encourage them to is being tested, costs are coming down, and
following actions are recommended: improve safety practices, and ensure increased regulations and standards are being defined.
customer engagement.
» LPG distributors should explore opportunities to » Smart gas sensors, which permit monitoring of
roll out these low-cost technologies and business » Regulators should consider promoting these the volume of gas in the cylinder, automatically
practices. Most of these technologies have “dual- solutions by introducing and enforcing at least triggering doorstep deliveries and alerting the
wins” for distributors. basic standards, such as making cylinder user and distributor in the event of a gas leak.
tracking and certain hose and valve technologies
mandatory. » Advanced leak detection systems installed
at distribution facilities and in homes, which
are stand-alone devices that detect leaks and LPG stove installed in a school in Haiti (Rachel
Mahmud/World Central Kitchen)
5 | CLEAN COOKING ALLIANCE EXECUTIVE SUMMARY | 6
through “IoT”2 platforms and potentially trigger
emergency procedures.
Among the various sessions that took place, “Safety
First: Best Practices in LPG” gathered interested TABLE OF
More R&D and scaling up of these advanced
industry specialists and other professionals. The
overview and key takeaways of the discussion are CONTENTS
innovations will be needed to make them more available in the Appendix 1 of this report. In the
affordable on a larger scale. Pilot projects will be months that followed, the Alliance, assisted by ENEA
an important element in the process of bringing and Menecon, engaged with numerous and diverse
Acknowledgement.......................................2
some of these technological solutions to market. stakeholders to capture their insights on challenges
Partnerships between local players and industry and opportunities accompanying the emergence of
majors can also accelerate their roll-out, as well as technological solutions tackling LPG affordability,
Executive Summary.....................................3
identify sustainable business plans. These solutions accessibility and safety. This report is the result of
are most likely to thrive in urban and peri-urban areas that extensive research. 1. Context.....................................................9
first before becoming more affordable and better
adapted to rural areas at a later stage. 2. Safety issues along the journey of an
More detail on each of the eight proposed LPG cylinder...............................................13
solutions and where in the LPG supply chain their
implementation could be most beneficial is provided 3. Improving LPG safety............................. 21
in later chapters of this report. The remainder of this
report is structured to first provide a brief context 4. Assessment of technology solutions....27
of the role of LPG and outstanding barriers to its
market penetration. It then broadly introduces the 5. Conclusions and recommendations......55
topic of LPG safety in the cooking fuel sector. This
leads into a detailed discussion in the following
Appendix 1 – Safety First..........................59
section regarding the safety considerations at each
step of an LPG cylinder’s lifecycle, setting the stage
for identifying existing and emerging technological References................................................. 61
innovations that could be utilized as market levers by
the private sector, policy-makers through regulatory
interventions, and in partnership with consumers
through education and training. The subsequent
chapters present the findings of in-depth surveys
of the advantages and disadvantages of each of
the eight solutions described above, together with
an assessment of their potential to enhance safety
and for market roll-out. The report concludes with
actionable recommendations for the different
stakeholders in the LPG sector.
The Clean Cooking Alliance launched the inception
of this report in the context of its Clean Cooking
Forum 2019, held in Nairobi on November 5-7, 2019.
2
Internet of Things - A network of Internet-connected objects able to collect and exchange data. Photo: Proto Energy
7 | CLEAN COOKING ALLIANCE TABLE OF CONTENTS | 8
1. CONTEXT Per capita consumption of LPG for cooking is extremely
low in most sub-Saharan African countries, averaging
to ensure public safety and private sector
confidence to invest.
less than 5 kg in most countries, compared with a
world average of 17 kg and over 65 kg in Morocco. 2. Finance along the value chain: Lack of access
LPG is used by just 17% of households in urban areas to financing and concessional funding for LPG
Liquefied petroleum gas (LPG) as a cooking solution is relatively mature
of Tanzania and 26% in Ghana (Table 1), with the businesses can inhibit market expansion.
compared to other options in terms of market maturity, yet a few critical hurdles penetration in rural areas remaining even lower.
remain that hinder market growth in many countries. 3. Affordability: The upfront cost of purchasing
In countries where residential use of LPG remains an LPG “starter pack,” including the burner,
limited and LPG business growth slowed, the cause cylinder, and first refill of gas, as well as the
stems from issues broadly related to supply, demand, recurring costs of cylinder refills, continues to be
Clean cooking challenges and the A high rate of switching to LPG has already occurred
and the policy and regulatory environment. a barrier to consumer adoption.
role of LPG in several countries, resulting in major environmental
and health improvements. A government-led program
A recent report by the Clean Cooking Alliance outlined 4. Safety: Perception of safety risks and poor
LPG is particularly well suited to domestic cooking to push households to adopt LPG in Indonesia drove
the main barriers to the development of LPG markets safety practices in the value chain can discourage
and heating because of its clean-burning attributes down fuelwood consumption for cooking from 50% to
in developing countries [13], chief among which are: consumer willingness to switch to LPG and
and practical advantages over both solid fuels 24% and kerosene from 37% to 4% between 2007 and
hinder market growth. This topic in particular has
and kerosene. LPG burns very cleanly, thereby not 2015 [1]. The net social benefits from avoided carbon
1. Regulation and market structure: Clear reg- implications for the previous three barriers and is
causing indoor air pollution experienced by the 40% emissions and reduced forest loss that resulted from
ulations and enforcement on the handling, dis- discussed in more detail in the rest of the report.
of the population (about three billion people) who rely this program are estimated at US$4.9 per household-
tribution, and dissemination of LPG are needed
on open fires or inefficient stoves to cook their food month, compared with US$1.6 for improved charcoal
[1]. Burning unsustainable biomass also contributes stoves [6]. The economic benefits could be seven
to global warming by releasing large amounts of times the cost of implementing the program [7]. Figure 1 - Per capita consumption of LPG in the household sector in selected developing
carbon dioxide (CO2) and black carbon into the countries in Asia and Africa, 2017 [12]
atmosphere [2]. Although LPG is derived from fossil Over 2.5 billion people in resource-poor settings
worldwide use LPG for some cooking tasks, including Morrocco
fuels, switching from traditional fuels to LPG can
Egypt
reduce net CO2 when considering biomass that has millions more in developed countries [8]. Rates are Indonesia
not been sustainably harvested. As an example, Kenya generally highest in developing Asia and lowest in World
loses 10.3 million m3 of wood from its forests every sub-Saharan Africa [9]. In India, around 75% of the India
population are now using LPG [10] and per capita Angola
year from firewood and charcoal consumption, a major
Viet Nam
contributor to the country’s 0.3% annual deforestation consumption has risen to around 16 kg per person Philippines
rate. Wood and charcoal fuel use, including black per year, thanks in part to recent large subsidized Senegal
carbon emissions, contribute 25 million tons of CO2 programs. In some developing countries with higher Côte d’Ivoire
average household incomes, such as Brazil and South Africa
eq. each year, approximately 40% of Kenya’s total GHG Cambodia
emissions [3]. It is estimated that LPG stoves emit Morocco, LPG penetration is close to 100%. Botswana
50% less carbon dioxide equivalent than conventional Tanzania
biomass stoves [4] [5]. Zimbabwe
Kenya
Togo
Mozambique
Table 1 - Percentage of population relying on LPG cooking [11] Niger
Nigeria
Zambia
Nigeria Kenya Ghana Senegal Ethiopia Bangladesh
Ethiopia
Urban 16% 24% 36% 55% 2%
0 10 20 30 40 50 60 70
Rural 0% 8% 9% 5% 0%
9 | CLEAN COOKING ALLIANCE 1. CONTEXT | 10
LPG safety – The role of perception Safety concerns also can discourage investment Figure 2 - Main reasons for not using LPG
and reality in the sector, particularly by large multinationals. by households in Indonesia [14]
Box 1 - Examples of surveys on LPG Ensuring zero accidents is a priority for multinationals,
When discussing LPG safety, the topic should be safety perception in emerging markets and LPG has risks which are described in detail below. 4.8
viewed from multiple angles, starting from the A lack of investment in safety measures around LPG,
sourcing of the LPG all the way to the usage of the particularly in a context of weak regulation and poor
In Indonesia, safety has been identified
cylinder in the household. enforcement therefore poses both a reputational risk
as the most important reason for
to businesses, as well as increasing operational costs.
people not adopting LPG [14].
Although LPG is a relatively safe cooking fuel, As one actor working for a major LPG player stated in
perceptions that it is more dangerous than other an interview for this study: “LPG safety is the key issue
A survey conducted in Lagos, Nigeria for us in Africa and stops us investing in the sector at
4.6
cooking solutions have proven to be a barrier to
switching and hence, market development. The
with a sample size of 519 households scale. We have even stepped back from certain countries
dramatic and devastating nature of some LPG has indicated that 90% of non-LPG due to safety concerns.”
accidents has led to sensationalist reporting and users were willing to switch to LPG
public fears about LPG. A few examples of LPG safety but cited safety issues and high cost In Nigeria, public authorities are calling upon the
perception surveys in emerging markets are compiled as potential barriers to switching [15]. establishment of public-private partnerships (such as
the upcoming one between the Ministry of Energy and 4.4
in Box 1 to the right.
In Peru, 87% of the participants Mineral Resources and Ibile Oil and Gas Corporation)
Serious accidents involving LPG are relatively of a survey reported their general to deepen LPG adoption by making sure that the
infrequent in most countries. The most common perception that it is dangerous to product is available at an affordable rate. Lagos State’s
types of accidents involve non-fatal burns caused cook with LPG due to the risk of risks Head of Service recently cited the fire incidents in the
directly by the flame from the burner or fire caused region as one of the reasons for increasing awareness
of fires and explosion [16]. In another
by the flame setting light to objects in proximity, on the proper use of the commodity as well as the 4.2
survey conducted in Puno, Peru, many
comparable to other cookstoves. More serious need to raise standards of LPG activities in the State.
participants perceived LPG stoves
accidents can occur as a result of a leakage of gas The Ministry of Energy and Mineral Resources is
as dangerous and risky, and there trying to change the narrative about LPG use in order
from the pipe or burner and the subsequent ignition of
were fears about the “possibility” of to increase penetration from the present 15% to 80%
the released gas. The most serious, yet extremely rare,
type of accident, involves the gas inside the cylinder or
an explosion, even though none of in the next five years. It is estimated that at least
storage tank exploding–an incident known as Boiling them had ever experienced any LPG $2 billion worth of investment is still needed in the
4.0
Liquid Expanding Vapor Explosions (BLEVE). This type incident [17]. sector in Nigeria to reach this target [20].
of accident can only occur if the safety valve on the
cylinder fails to release the gas inside in the event of In a market survey of 400 house- Ensuring that LPG is handled safely along the
the cylinder heating up (for example, if a fire breaks out holds in Pemba, Mozambique, 79% supply chain, from importer to the final consumer,
in the building where the cylinder is stored), increasing believed LPG to be toxic, explosive or is of paramount importance to both customer
the pressure. dangerous [18]. acceptability and investment appetite.
3.8
Less tasty
Cooking needs to be watched
Size of canister too big
Expensive
Afraid of explosion
In general, LPG-related accidents occur more
frequently in the least developed countries, where
safety standards are less respected and ill-enforced. people that live in households and use LPG for cooking
In Indonesia, where a strong regulatory environment [1]. By contrast, in Cameroon, 20,955 households
was adopted to frame the Zero-Kero program aiming experienced LPG-related accidents accounting for
at boosting LPG adoption, 582 LPG-related accidents 279 deaths and 4,270 injuries in 2004 alone [19].
were reported over the period 2007 to 2012, resulting
in 16 deaths–just three per year out of the 220 million
11 | CLEAN COOKING ALLIANCE 1. CONTEXT | 12
2. SAFETY ISSUES ALONG THE
JOURNEY OF AN LPG CYLINDER
Example of LPG two-burner modern equipment
There are a set of safety considerations at each will go through many customers’ hands, travel via
stage of the journey along which an LPG cylinder various modes of transportation, and undergo filling
travels, from the refilling plant to the final household and requalification (repair) at different facilities. This Equipment manufacturing accidents. A study analyzing burn admissions at a
section examines, in detail, the different safety risks clinic in India has shown that most of those involving
end user. Safety is also important in the supply of the
at each stage. Ensuring the quality of the equipment used for LPG cylinders were caused by leaks from the hardware,
fuel itself from the import terminal, refinery or gas-
cooking with LPG at the manufacturing stage is usually either due to cracks on the connecting hoses
processing plant to the refilling plant. A typical cylinder
the first step towards the safe use of LPG. The or defect valves and regulators [24].
most common manufacturing defects include poor
Figure 3 - Break down of the LPG cylinder lifecycle
cylinder welding (noted in interviews as the key stage Leakages of gas can also occur with the cooking
where manufacturing faults can happen), faulty valve equipment. In addition to the LPG cylinder, cooking
A Equipment manufacturing
outlets and pressure gauges, and defective cook- with LPG also requires a cookstove or a “burner”. LPG
stoves (the figure below depicts the configuration can also be used in ovens. In both cases, faulty knobs
LPG bulk transportation of an LPG cylinder and associated fittings). If manu- on the burner or oven can lead to gas escaping even
B LPG sourcing
and bulk storage
facturing defaults go unnoticed, leaks can occur when turned off, leading to a risk of fire.
Cylinder refilling leading to the accumulation of gas in enclosed area
and the risk of fire. New innovative cookstove equipment is emerging
C Cylinder distribution
which deals with several of these risks and is discussed
Cylinder management by retailers Studies of LPG-related incidents demonstrate that in more detail in the technology section.
poor manufacturing can be a leading cause of
Gas production, refining (e.g. in
Key stages Saudi Arabia) and bulk transportation
Throughout the lifespace D Last-mile delivery
of a cylinder, ranging Figure 4 - LPG cylinder and associated fittings [21] [22] [23]
from 20-40 years, it will End-customer usage
repeatedly go through
stages C & D to be
refilled numerous times Installed
(typically once every 2-6
months) Used for cooking
Bulk storage of Liquid Petroleum
Stored when not in use Gas (LPG)
Refilled/replaced when empty
Transport to cylinder testing facilities
Circularity
Requalification & return to market
Revalidation after repair Cylinders may be
& requalification repaired and returned to
according to state of
E Or (if too old or too damaged)
the top market to close
cylinder & regulations the loop
Scrapping/recycling
13 | CLEAN COOKING ALLIANCE 2. SAFETY ISSUES ALONG THE JOURNEY OF AN LPG CYLINDER | 14
LPG cylinder filling LPG cylinder distribution to retailers
The filling stage is a crucial step in the life of an Distribution of cylinders from refilling stations to
LPG cylinder. Any error in the way the cylinder is filled dealers and retailers is usually carried out by road
can result in a serious accident further down the transport, which results in a risk of traffic accidents. In
supply chain. addition, cylinders may be damaged during transport,
on-loading, or off-loading. Transportation can be the
Cylinder filling plants vary in scale and sophistication, responsibility of the marketer itself or contracted
but all need to follow safety standards to ensure out to logistics companies. The three main safety
safety [29]. LPG filling facilities include simple single- concerns with respect to the distribution of cylinders
station operations filling small numbers of cylinders, are as follows:
to high-technology plants serving hundreds of
thousands of consumers. Cylinder filling operations » The state of the vehicle used for transportation.
should be carried out in accordance with a reputable Resorting to second-hand trucks to transport
technical standard or code such as ISO 10691 [30]. goods is a common practice in developing
An important element of the refilling process is the countries. However, these carriers are often
testing and validation of the integrity of each cylinder antiquated and in a poor state of repair, increasing
as fit for service at every refill - before, during, and after the risk of the cylinders being damaged. Trucks
the filling process. Re-fillers must avoid over-filling regularly employed for transporting cylinders
cylinders, as this can lead to excessive pressure and should be designed or adapted to minimize
the risk of a gas leakage or explosion. To avoid such a the risks of the cylinders being damaged. They
risk, a cylinder must never be filled beyond 85% of its should be inspected before they enter service
liquid capacity [31]. and be properly maintained [29].
Illegal, unlicensed refilling operations that do not » The conditions under which the cylinders are
respect safety standards, sometimes involving transported in the vehicle. Cylinders must
Men cooking with rudimentary LPG stoves in Jaipur, India. adulterated gas, is a serious problem in some always be transported in a vertical position to
emerging LPG markets. These operations put the prevent damage and over-pressurization in the
lives of those working in the plant and further down the event of a shock. Whenever possible, full and
LPG sourcing can lead to fires and, in exceptional circumstances, supply chain at risk (see “Cylinder requalification and empty cylinders should be segregated on the
explosions. Accidents at this stage of the LPG supply cylinder scrapping” paragraph below for a discussion truck. Cylinders should be loaded onto the truck
At the first stage of the distribution chain, LPG is chain can prove to be very harmful for the operators, of counterfeit equipment and the grey market). in crates with anchorage holes, straps, or ropes
transported in bulk into the country, typically by ship, the economic viability of the investments, and the (natural hemp not nylon) to restrain the carried
rail, or road. It is then transported to major storage reputation of the sector, undermining confidence in Consistent training and regular checking and cylinders and prevent them from being damaged.
facilities within the importing country. LPG is stored future investment. Anecdotal evidence suggests that maintenance of the filling equipment according to Valve caps are particularly important at this stage
in bulk at the port terminal, refinery, or gas-processing they can also undermine confidence in the safety of strict procedures is vital to ensure its functionality in helping prevent moisture and dirt from entering
plant before being transferred to regional hubs and using the fuel at the household level, even though the in the long-term. For instance, at the post-filling the valve of the cylinder, in addition to providing
facilities, ready for filling activities or industrial use. consequences of household accidents are generally stage, a fixed seal (shroud or dust cap), usually made protection from any potential impact [33].
The largest spherical storage tanks each hold up to much less severe (cf. introductory chapter). This is of plastic, is normally fitted to the valve to protect it.
100,000 tons while mid-scale storage sites usually store what was observed in Accra, the capital city of Ghana, Increasingly, LPG marketers are fixing a tamper-proof » A lack of training and absence of emergency
between 50 and 1,000 tons. Improper management of in the wake of an explosion at a gas station [28]. seal to the cylinder valve after refilling to reassure action plans. Drivers and operators share the
storage facilities can result in spillages. Coverage of such accidents by mainstream media future customers of the integrity of the cylinder [29]. responsibility of ensuring safety and minimizing
can further exacerbate these fears and concerns, the likelihood of accidents on the road. Drivers
Leakages of LPG from bulk storage or transportation discouraging switching to LPG cooking. should receive proper instruction and training
facilities, when in contact with an ignition source, from their employer or vehicle operator [34].
15 | CLEAN COOKING ALLIANCE 2. SAFETY ISSUES ALONG THE JOURNEY OF AN LPG CYLINDER | 16
LPG cylinder management by retailers
Safety is also a concern at the point of delivery of
cylinders to retail premises and their storage on site.
When taking deliveries, retailers may not check for
irregular markings and logos on the cylinders. Labelling
of cylinders by marketers ensures compliance with
national regulatory frameworks or industrial best
practices. This includes information such as the exact Common last-mile LPG cylinder delivery practices in India [41], China [92] and Jordan [94].
content of the cylinder (propane or butane), the name
of the supplier, the volume or weight of the gas in the
cylinder, and a warning of the flammable nature of the Injuries can also occur in lifting cylinders, especially and installed by distributors in 2014 [37]. In other
contents using symbols or text in the local language. if they are heavier than the weight marked on the countries, like India, self-installation is common: in the
The retailer should check this information, as well as outside. A full steel cylinder weighs about twice that state of Uttar Pradesh, only 29% of households obtain
checking for defects when they receive the cylinder. of an empty one, i.e. a full 6 kg cylinder weighs up to their cylinders through home delivery [38]. Where self-
Doing so reduces the risk of accidents and the 12 kg [35]. The handling of cylinders should be done delivery is common, additional efforts are required
penetration of illegally filled cylinders on the market. with mechanical lifting devices and trolleys wherever to educate consumers on the best way to carry the
Cylinder tracking, as described below in the innovation possible to avoid injuries to employees. Manual cylinders home without damaging them and how
section, is a step towards this. handling of cylinders can also lead to accidents to install them safely. Home delivery is discussed in
caused by falling of cylinders if employees do not wear more detail later in this report.
Safety concerns often arise from temperature, protective equipment such as suitable safety shoes.
pressure, and humidity conditions in the store and Chronic harm due to repetitive manual lifting is also The risk of LPG being delivered to final customers
from the way cylinders are stored. Problems can common with wrong posture causing work-related in an unsafe manner is particularly acute in rural
occur when cylinders are not stored away from direct musculoskeletal disorders (MSDs), such as pain and areas, away from modern transport infrastructure.
sunlight and sources of ignition or other flammable injuries to limbs and joints [36]. Most poor rural households do not own cars, so
materials. It is also important that they are stored they must rely on other forms of transport such as
vertically (to prevent damage to the valve), in a dry, It is essential that retailers provide staff with bus, taxi, motorcycles, animals, or boats to carry the
clean, ventilated space on a flat surface and not left adequate training and supervision. Training is cylinder. The risk of damage to the cylinder through
standing in water or in the rain. Humidity can cause the first step towards reducing employees’ risk of mishandling is inevitably that much greater in those
corrosion, which in turn can leads to leaks, while dust injury and ensuring that the integrity of the cylinders cases [39]. Many also travel long distances on foot
or dirt can obstruct the valves and regulators. High is preserved. For instance, valves should only be while carrying heavy cylinders, which poses a risk
temperatures can result in excessive pressure inside removed by trained personnel using procedures which of injury as well as damage to the cylinder by being
the gas cylinder, increasing the risk of leakage. ensure that the cylinder is no longer pressurized [33]. dropped. For instance, many rural LPG customers in
The way in which cylinders are handled on retail India must travel several kilometers to the nearest LPG
premises can be a source of risk. Dropping, rolling, Last-mile delivery retail outlet [38]. The long distances to LPG retailers
or dragging cylinders can result in damage to their was one of the main reasons cited for the low rate of
integrity, increasing the potential for leaks. LPG The delivery of cylinders to households either by the LPG adoption in a recent case study of Ghana’s rural
leaks can cause cold burns if the gas touches the skin. retailer or the customer themselves if they collect LPG scale-up program [40].
Propane, with its low boiling point, is more hazardous the cylinder from the retail premises is particularly
in this respect than butane which, in cold conditions, prone to safety risks. In several countries, delivery to End customer usage
is slower to vaporize and disperse. The eyes and body, the home by retailers of sub-contracted professional
when not protected, are particularly exposed when delivery companies is common. In Brazil, example, There are several safety risks involved in using LPG
A gas filling station in El Fasher, Sudan [32]. Every handling LPG [29]. 95% of the cylinders used by the country’s 42 million in the home or business, associated with the poor
morning, dozens of shop keepers come to the station households that rely on the fuel were delivered installation of the equipment, ill-adapted cooking
to collect LPG cylinders for distribution to the city.
17 | CLEAN COOKING ALLIANCE 2. SAFETY ISSUES ALONG THE JOURNEY OF AN LPG CYLINDER | 18methods, unsafe storage of the cylinder, and poor » Improper storage at the end customer’s home:
maintenance of the equipment. When not in use, the best practices for storage
of the cylinder applicable to professional retailers
» Incorrectly performed installation: As for delivery are also valid for households, especially in rural
to the home, a newly purchased or exchanged areas where houses’ vulnerability to extreme
cylinder may be installed by the customer himself weather conditions and parasites is higher. It
or by the LPG marketer or retailer. The operation is also important to note that in developing
is repeated every time the cylinder needs to be countries, many poor families live in one-room
refilled, i.e. everyone to six months depending on houses and don’t have the luxury of a separate
consumption. When the company is responsible kitchen [43]. This means there may be multiple
for installation, trained professionals can ensure cooking sources located close to one another,
that all the conditions for safe use of the cooking increasing the risk of fire.
system are met. Furthermore, this interaction
represents an opportunity for the professional to » Lack of care and irregular maintenance of Mobile money being used to purchase specific quantity of LPG
inform and educate the customers on the correct equipment: Whether the cooking equipment
use and placement of the cylinders and answer to is their property or that of the marketer, end
any questions about how to cook safely with the customers are still responsible for keeping and sometimes replacement–of the valve, a thorough tion of existing ones, as nameless re-fillers who
fuel. This greatly reduces the risk of any mishap. appliances in good condition. Failure to regularly internal and external visual inspection of the cylinder, could not be made accountable for safety breaches
When customers take care of the installation inspect the cylinder, valves, or hoses to identify a hydraulic test (for leakage), and other tests such resold cylinders [45].
themselves, there is a greater risk of inappropriate potential leaks can lead to fatal accidents. It seems as an acoustic check. After the cylinder has passed
practices, such as horizontal positioning of the obvious that leaks should never be detected using the test, a new inspection date is stamped onto the When a cylinder has reached the end of its life it
cylinder, proximity to ignition sources, hoses left a candle or cigarette lighter, yet accidents caused neck ring. Cylinders requiring urgent maintenance or must be destroyed in a safe manner. Even an empty
at the mercy of rodents, and soiling of valves by such practices still occur. Equipment must be repair should be dealt with immediately by trained and LPG cylinder will contain small amounts of hazardous
and regulators. It is of critical importance that serviced regularly by qualified professionals [42]. properly supervised employees as they are potentially vapor and therefore must be handled safely. Empty
customers are made aware of these risks and A lack of information about how to respond to a hazardous, and a backlog should never be allowed cylinders should always be treated as if they contained
how to handle disconnecting and installing the gas leak or, worse, fire can worsen the danger. to accumulate within the cylinder testing area [29]. liquid, especially if they are to be disposed of [46].
cylinders to their cooking system safely. The requalification of LPG cylinders is a government Disposal techniques include punching large holes into
Overall, poor safety practices at home due to a lack requirement in most countries, with the frequency both halves of the pressure vessel. Punching a hole
» Ill-adapted cooking methods: Another source of awareness and education create a misperception typically ranging from 1-15 years. in only one half leaves the possibility of the other half
of safety hazard resides in cooking practices. on the part of end users that LPG is dangerous and being recovered and reused. Domestic cylinders which
The most common examples of imprudence and discourage others from switching to the fuel. In a In a similar fashion to what can happen at the are re-made using the “good” halves of condemned
negligence include cooking at floor level without an study conducted in Guatemala in 2015, participants refilling station, a lack of control of the requalification cylinders present a serious risk as they are rarely heat-
elevated slab for the cooktop, leaving the cylinder reported feeling unsafe using the LPG cylinder and process can allow illicit practices to proliferate, and treated after welding [46]. This was an issue in the
valve open, or letting children play in proximity stove. They had received no information or instructions LPG cylinders showing no markings or with wrong Philippines until disposal procedures were tightened.
to the equipment. In addition, some end users on safe installation or use [44]. or misleading information may be wrongly put back
continue to use traditional fuels intermittently in into circulation. A major problem hampering safety As at other stages of the LPG supply chain, illegal
a stove placed next to the gas cylinder, increasing Cylinder end-life of requalification practices is the existence of or unauthorized operations impede efforts to build
the risk of an accident. In some cases, kerosene is parallel grey markets, adding counterfeit or unsuited a safe image of LPG and diminish the attractiveness
stored alongside the LPG cylinder. Other potential LPG cylinders typically require regular maintenance products in the market. That is why new regulations of cooking LPG generally. In addition, such practices
causes of accidents include forgetting about a to ensure they are still functioning properly. In were approved in Kenya in 2019 after it was discovered can prove to be major obstacles for corporations
saucepan placed on the stove, which can lead to addition, at periodic intervals, cylinders need to that the interchange of LPG cylinders, which had been seeking to enter emerging markets with their products
liquids overflowing, extinguishing the flame and be removed from the filling line and given a much permitted under previous regulations, had seen brands and services, exposing them to serious operational
causing a gas leak [42]. more rigorous check–a procedure known as lose track of 90% of their cylinders, discouraging and reputational risks.
“requalification.” This usually involves the removal– investment in further cylinders and requalifica-
19 | CLEAN COOKING ALLIANCE 2. SAFETY ISSUES ALONG THE JOURNEY OF AN LPG CYLINDER | 203. IMPROVING LPG SAFETY Regulatory frameworks Regulatory entities, certification agencies, and
national LPG associations all need to play a role in the
A strong and robust regulatory framework is crucial enforcement of LPG-related laws and regulations:
to ensure public safety, reassure consumers, and
At each stage of the LPG supply chain, different levers are available to mitigate give the private sector confidence in its ability to » Regulatory authorities: In Kenya, for example,
generate adequate returns on investment. As stated the Energy and Petroleum Regulatory Authority
safety risks, and different sector actors have a role in pushing those levers.
in the report “Scaling LPG for cooking in developing regulates, monitors and supervises the
markets: insights from Tanzania,” the government importation, refining, exportation, transportation,
must enforce LPG regulations concerning ownership storage, and sale of petroleum and petroleum
Several complementary approaches that can be cylinder filling, refilling, and requalification. Education and operating practices throughout the distribution products [50].
adopted to improve safety along the LPG supply is important at all stages of the chain once the network that both ensure safety and enable and
chain. They may be categorized as concerning the cylinder is in circulation. The greatest potential for encourage the private sector to make ongoing » Licensing and certification agencies: In South
regulatory framework, training, education, and aware- new technologies to improve safety lies in equipment investments, given that LPG cylinders and other Africa, LPG installers are required to register
ness, or new technology-based solutions. The first two manufacturing, filling and refilling, home delivery and equipment used in supply of fuel can be dangerous if under the SAQCCGas (South African Qualification
approaches are largely the domain of the authorities, installation, and its use in cooking. not well maintained or managed [13]. & Certification Committee for Gas) to be able
though the private sector can play an important role. to operate, and a Certificate of Conformity
The third is largely in the hands of LPG distributors or Each of these levers is described below and The LPG business is generally regulated via national (CoC) must be issued after completion of a gas
marketers, which are often privately owned. categorized as ‘major’–meaning the lever is critical to policies and laws. Whilst many parts of the LPG installation [51].
resolve the safety challenge, and ‘minor’–where these business generally fall under national energy and health
The potential for each of these levers to enhance mitigation measures can play a non-critical but helpful and safety legislation, most countries have developed » LPG industry associations: National LPG
safety in developing countries varies according to the role to improve LPG safety. This section assesses regulations specifically for LPG. Regulations often associations, whose members generally include
stage of the LPG supply chain (see Table 2 below). the principal emerging private-sector technological draw on international standards, which complement marketing companies, cylinder manufacturing
In general, regulation can have the greatest impact in solutions and their potential for improving safety in local and company-specific standards. For instance, and maintenance companies, government
ensuring the safety of equipment, LPG sourcing and developing countries based on surveys conducted. for cylinder requalification, countries usually have representatives, and consumer organizations, can
their own inspection standards [47]. For example, in contribute to regulation and policy formulation,
Table 2 - Main mitigation levers per identified safety barrier by supply chain stage the Philippines, the local PNS 03-2-2014 standard promotion of fair competition, adoption of
is used; in Indonesia, there is a combination of local international safety standards, collection and
Mitgation levers Minor Major and international guidelines (SNI1452:2011-Indonesia dissemination of information, and education and
Stage Exact process involving potential safety barriers Training, Emerging National Standard to guide cylinder design and the training [52].
Regulatory
education and technogical ISO 10464:2004-Gas cylinders inspection and testing
framework
awareness solutions
standard. In addition, LPG marketers, particularly large Policies and regulations governing the ownership of
A Equipment manufacturing multi-national corporations often also apply their own cylinders are of crucial importance to ensuring safe
B LPG sourcing standards, which are often stricter than the national practices along the LPG cylinder supply chain.
standards or regulations [48].
C LPG cylinder filling
Two LPG cylinder distribution models exist worldwide:
C LPG cylinder distribution to retailers – Standards evolve constantly over time with the branded cylinder recirculation model (BCRM)
C LPG cylinder management by retailers – changing attitudes to safety and the emergence of and the customer-controlled cylinder model (CCCM).
new technologies. For example, the Kenya Bureau of The BCRM has proven more successful, especially
C D Delivery and installation at end-customer home
Standards launched a new standard for LPG smart in early-stage markets (see the Alliance’s report on
D Cooking metering in 2019 (KNWA 2885:2019) in collaboration scaling LPG in developing countries), in large part
D Storage and care of cooking equipment
with the company PayGo Energy [49]. because it is more compatible with safety practices.
Under the BCRM, distributors and marketers are
C D Cylinder refill or replacement when empty responsible for cylinder safety—including inspection,
E Cylinder requalification or scrapping maintenance, and replacement—and refilling the
21 | CLEAN COOKING ALLIANCE 3. IMPROVING LPG SAFETY | 22cylinders throughout their lifetimes. Under the CCCM, A study carried out by the World Bank in 2011
end users own the cylinders and bring them to filling found that the downstream petroleum laws and
stations to be refilled as needed, without regard to
Box 2 - Case study: regulatory changes general regulations governing the LPG sector in Box 3 - Non-exhaustive list of good
the brand. With CCCM, cylinders in circulation tend
to improve safety in the lPG industry many developing countries are incomplete and practices for personnel working in the
to become unsafe due to a lack of incentives for the often antiquated [48]. The study assessed the legal lPG industry supply chain [46]
re-filler to inspect and repair the cylinders, as well as a framework, industry and market structures and
In 2019, the Kenyan government
lack of clear rules and incentives for customers to have practices, supply arrangements and infrastructure, At bulk distribution & storage phases:
enacted new laws aimed at putting an
cylinders properly inspected and repaired [13]. For and pricing policies of 20 developing countries around
this reason, many countries have introduced or are
end to illegal refilling by disbanding » Training should include product
the world to examine how LPG can contribute to
in the process of introducing a requirement for the the LPG cylinder exchange pool that safety and emergency response
reducing household energy poverty in developing
BCRM. For example, the Government of Ghana is previously allowed up to 50 marketers procedures;
countries. It found that regulations typically do not
currently transitioning as rapidly as possible from to sell gas to end customers and led contain specific provisions for LPG. Very few countries
to a number of illicit cylinder refill- » Housekeeping should be under-
CCCM to BCRM to reduce deaths caused by LPG have special regulations for LPG, though many have
ing operations springing up. The aim taken regularly.
accidents and to attract investment to scale up its issued at least some national standards and/or
LPG industry [13] [53]. is to protect consumers from acci- formally adopted international or regional standards At refilling plants:
dents caused by damaged and faulty for quality control and protection of occupational
In practice, the establishment of a traditional cylinders, which have been on the health, safety, and environmental (HSE). International » Having adequate parking space
regulatory regime for LPG distribution is not always rise in the last decade. The reform standards are often applied by the regulators and and good traffic flow for vehicles
effective in preventing accidents and ensuring safety, allows oil marketing companies to the industry as a matter of fact, but without having a moving through the plant reduces
especially in the poorest developing countries: get together and form a mutual formal legal basis. Whether the rules are really applied the risk of a collision;
LPG exchange agreement to enhance and enforced depends more on the institutional
» The regulatory framework is not always clear
their access to the LPG cylinder structures and capacities of the authorities than on » Cylinder-filling plants can be noisy
or stringent enough: For example, In Nigeria, the completeness and sophistication of the regulatory facilities–it is important to protect
market [54].
a review of downstream petroleum industry framework, as well as on the characteristics of the workforce from high noise levels
operations revealed the “limitations of the the suppliers and distributors in each country. The for their health and to maintain
framework such as incoherent laws, overlaps, subsidiaries of major international oil companies good levels of concentration.
duplications, and conflicting regulatory functions” and well-organized local operators, privately or state-
[55]. For example, there may be a lack of clarity » Corruption and smuggling undermine safety owned, tend to apply their own basic standards At the requalification premises:
between the roles of government ministries, and regulations: For instance, illicit cross-border regardless of the mandates and efficiency of the
national petroleum corporations in the monitoring activities in Thailand, mainly in the form of state- applicable legislation in the country [48]. » Destroying beyond repair when
and enforcement of LPG safety regulations. subsidized LPG being smuggled into Myanmar scrapping cylinders.
and Cambodia, have led to an increase in Training, education, and awareness
» A lack of a safety culture and poor enforcement accidents involving cylinders [57] [58]. At the dealers’ and retailers’ level:
of regulations: According to the World LPG Engaging in education and awareness campaigns
Association, the withdrawal of some of the » Budget constraints impede the development and on how to handle LPG safely is essential to promote » Cylinders should be stored in well-
larger multinational companies from the global enforcement of regulations: In Kenya, setting up and spread impactful messages on best practices ventilated and secure areas that
LPG business over recent years has increased requalification centers or obtaining certification with regard to LPG for cooking. Such awareness have good access for emergency
the need for enforcement of safety regulations, from official regulated entities can prove to be raising and education can bring down accident rates removal in the event of an incident.
including heavy penalties for non-compliance very expensive for certain organizations [59], substantially and eradicate misunderstandings
[56]. For example, poor enforcement of illegal even where distributors systematically comply and misconceptions about safety that continue Set up service agreements to provide
refillers not only damages the reputation of the with the national industry’s standards. In addition, to discourage households in many markets from delivery of the cylinder and connection
sector, reducing customer demand, but also governments and regulators often do not have switching to LPG [60] [61]. to the appliance if requested by the
leads to below-market prices, reducing the ability adequate budget to properly enforce standards. customer.
of investors to achieve a return on investment.
23 | CLEAN COOKING ALLIANCE 3. IMPROVING LPG SAFETY | 24You can also read
