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LPG Supply Master Plan for Cambodia

LPG Supply Master Plan for Cambodia
25 June 2024
Ministry of Mines and Energy, Government of Cambodia, ERIA
LPG, Energy, Cambodia, Master Plan

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LPG demand in Cambodia has been increasing rapidly over the past 20 years. One reason is the remarkable increase in LPG use for road transport, particularly in major cities such as Phnom Penh, due to the explosive rise in the number of three-wheel tuk-tuks, known as Pas-APP. These vehicles, produced in India, are imported into Cambodia. Additionally, LPG use in residential and commercial sectors has significantly increased, shifting from biomass such as fuelwood to LPG due to rising income levels. While LPG demand is currently concentrated in urban areas, it is expected to penetrate rural areas in the future.

According to this report, Cambodian LPG demand will increase 3.6 times from 2021 to 2040 across the entire country. Therefore, this study analysed whether the current LPG delivery network will be sustainable in the future. Currently, there are four major LPG import points: Sihanoukville (receiving LPG from Singapore), Phnom Penh (via the Mekong River), and the borders with Viet Nam and Thailand (land transport). The Viet Nam border is the dominant import route (65%), followed by Sihanoukville (23%).

This study sought to identify an optimal LPG transport network (i.e. cost-minimised) from these four major import points to the capital city of each province by 2040, using the Linear Programming tool. After the LP calculation, several policy implications were derived to inform the General Department of Petroleum, Ministry of Mines and Energy, Cambodia.

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