UAE Liquified Petroleum Gas Market to Double by 2033, Hitting $13.7 Billion

🚀 Agricultural and Associated Gas Growth Fuel UAE Liquified Petroleum Gas Market at 5.8% CAGR

WILMINGTON, DE, UNITED STATES, July 8, 2025 /EINPresswire.com/ --

According to a new report published by Allied Market Research, the UAE liquified petroleum gas market size was valued at $6.6 billion in 2023 and is projected to reach $13.7 billion by 2033, growing at a CAGR of 5.8% from 2024 to 2033.

Liquified Petroleum Gas (LPG) is a versatile energy source made primarily from propane and butane, produced during natural gas processing and petroleum refining. It is stored and transported in liquid form under moderate pressure, making it suitable for heating, cooking, transportation, agricultural, and industrial uses.

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📌 Key Takeaways

The UAE liquified petroleum gas market is set to double in value, reaching $13.7 billion by 2033.

Associated gas is the fastest-growing source, expected to grow at 6.4% CAGR.

The agriculture sector is emerging as a key consumer, with 8.6% CAGR projected through 2033.

Demand is driven by clean energy transition, off-grid energy needs, and sustainable farming practices.

Key players like ADNOC, Brothers Gas, and Emirates Gas are investing in smart LPG infrastructure and delivery.

⚙️ Market Dynamics

🔋 Demand Drivers

The growing need for clean, efficient, and accessible energy across sectors like residential housing, commercial complexes, agriculture, and industry is fueling the UAE liquified petroleum gas market. Key benefits of LPG include:

High calorific value

Clean combustion with lower emissions

Portability and ease of storage

Compatibility with existing gas infrastructure

As part of the UAE’s energy diversification strategy, LPG plays a vital bridging role—offering cleaner combustion than coal and oil while leveraging existing infrastructure.

🌞 Renewable Energy Competition

However, the rise of solar and wind power projects in the UAE poses a competitive challenge. With the government heavily investing in zero-emission energy as part of its net-zero ambitions, LPG faces increasing competition from renewables.

Additionally, high upfront costs for refinery setup and modernization remain a challenge for full-scale LPG infrastructure deployment. These factors could temper the growth rate of the UAE liquified petroleum gas market over the long term.

📈 Growth Opportunities

Despite challenges, opportunities abound due to:

Leveraging existing oil & gas infrastructure

Strong demand from off-grid and rural areas

Government push for agriculture modernization

Shift toward cleaner transport fuels in logistics and agriculture

All of these trends are expected to support long-term growth across both traditional and emerging LPG applications.

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🔍 Segment Insights

🔗 By Source

The UAE liquified petroleum gas market is segmented into:

Refinery

Associated Gas

Non-Associated Gas

The associated gas segment is projected to grow at the fastest CAGR of 6.4% through 2033. This type of gas is produced as a byproduct of crude oil extraction and includes components like methane, ethane, propane, and butane.

As global regulations increasingly discourage gas flaring, associated gas is now seen as a valuable resource. The UAE government is enacting policies to support gas capture technologies, which will further boost the utilization of associated gas for LPG production.

Key regulatory enablers:

Flaring reduction targets

Emission standards

Incentives for carbon-neutral fuel infrastructure

These developments are expected to stimulate further investment in associated gas handling and processing capabilities.

🧪 By Application

The market is categorized into:

Residential

Commercial

Agricultural

Industrial

Transportation

Others

Among these, the agricultural segment is expected to grow at the highest CAGR of 8.6% during the forecast period.

🌾 Why Agriculture?

LPG is gaining prominence in UAE agriculture for its role in:

Crop drying

Pest control

Greenhouse heating

Water pumping & irrigation

Fueling tractors and farm equipment

As the UAE pursues its National Food Security Strategy, the demand for clean, efficient energy sources in agriculture is climbing. LPG enables sustainable farming by offering low-emission alternatives to diesel and petrol-based systems.

🏢 Competitive Landscape

Leading companies in the UAE liquified petroleum gas market include:

Abu Dhabi National Oil Company (ADNOC)

Brothers Gas

Emirates Gas LLC

Emarat

Sharjah National Oil Corporation (SNOC)

Al Fanar Gas

Dubai Fuel Supply LLC.

Shield Gas Systems

Plumblend

TotalEnergies

These companies are focusing on:

Expanding distribution networks

Enhancing safety and storage systems

Launching mobile LPG delivery solutions

Partnering with smart energy and agritech startups

With strong government backing and a stable oil and gas infrastructure, UAE-based players are well-positioned to meet rising LPG demand across both domestic and export markets.

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🦠 Impact of COVID-19

The UAE liquified petroleum gas market faced short-term disruptions during the COVID-19 pandemic due to:

Supply chain delays

Reduced industrial and transport activity

Postponement of new infrastructure projects

However, residential consumption remained resilient, and with post-pandemic recovery, LPG demand from commercial and agricultural sectors has surged again—paving the way for long-term stability and growth.

✅ Conclusion

The UAE liquified petroleum gas market is poised for robust growth, doubling its size by 2033 as demand rises across residential, industrial, and especially agricultural sectors. Despite growing competition from renewable energy and the high cost of refinery infrastructure, LPG remains a vital component of the UAE’s transitional energy strategy due to its flexibility, cleaner emissions, and compatibility with existing systems. Segments like associated gas and agricultural applications are leading the momentum, supported by strong government initiatives and regulatory backing. As sustainability, energy security, and rural development gain priority, LPG will continue to play a critical role in shaping the UAE’s balanced and diversified energy future.

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About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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Allied Market Research
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