The production of Liquefied Petroleum Gas (LPG) in Malaysia has shown variability over the years. In 2023, the production stood at 2.7068 million metric tons. Between 2022 and 2023, the year-on-year variation was a slight increase of 1.09%, reflecting a recovery from the minimal decline recorded in 2022. Observing the last five years, the compound annual growth rate (CAGR) from 2018 to 2023 was approximately -0.11%, indicating a relatively stable but slightly declining trend. Forecasts from 2024 are suggesting a modest growth, with the production expected to reach 2.7805 million metric tons by 2028, representing a forecasted 5-year CAGR of 0.43%.
Future trends to watch for include:
- Technological advancements in LPG extraction and processing that could enhance production efficiency.
- Government policies and regulatory changes that could impact the energy sector, either positively or negatively.
- Fluctuations in global oil prices that could influence the cost and investment in LPG production infrastructure.
- Shift towards renewable energy sources which might affect the demand and production strategies for LPG.
