LPG for industrial energy conversion

In Morocco, TotalEnergies Marketing Maroc is seizing the opportunity offered by the energy transition to help companies convert to LPG. This alternative makes it possible to reconcile reduced CO2 emissions with enhanced energy performance. Bouchra Bel Abbes, the subsidiary's Gas Director, shares the best practices implemented to offer manufacturers less carbon-intensive energy in line with climate objectives.

Since 2018, TotalEnergies Marketing Maroc has been working to persuade industrialists in the BtoB sector to switch from fuel oil to LPG. This strategy is in line with the Company's climate ambition and meets the economic and security of supply challenges. It is also in line with the country's national roadmap for energy transition.

Energy-intensive industries generally use fuel oil, but are faced with maintenance problems and growing environmental concerns. TotalEnergies Marketing Maroc offers BtoB customers the opportunity to switch from fuel oil to LPG by identifying prospects ready to take the plunge and tailoring its sales pitch to each of them. This approach has proved its worth in recent years.

Potential customers targeted include manufacturers using 7* fuel oil, as well as those operating in urban areas who need to invest heavily to reduce emissions and nuisances. Industries with fuel-related maintenance costs more than $30,000 a year, or 5% of their total energy bill, are also targeted. TotalEnergies Marketing Maroc also targets subsidiaries of multinationals with a global environmental strategy.

The subsidiary also offers a hybrid solution with a mixed oil/LPG burner for undecided customers. It assumes the cost of installation to help them discover the advantages of LPG. Raising awareness of the intrinsic and environmental advantages of LPG is often enough to convince manufacturers.

However, the difference in cost between fuel oil and LPG is a major obstacle to conversion. Moreover, the volatility of LPG prices creates economic uncertainty. The exclusivity clause imposed on LPG customers can also give rise to hesitation. Regulatory constraints in terms of health, safety and the environment can also compromise the conversion of certain customers. Despite these challenges, TotalEnergies focuses on safety and quality, reinforcing the Company's image with customers. Converting to LPG requires specific commercial and technical skills, supported by in-house training.

In Morocco, in 2022, 444,000 tons of LPG were sold, including 402,000 tons in packaged form (butane, propane) and 42,000 tons in bulk, with a potential of 10,000 tons in the coming years.

Converting from fuel oil to LPG offers environmental and energy benefits for manufacturers. Despite the economic, regulatory and safety obstacles, TotalEnergies is committed to supporting the Moroccan industrial sector's energy transition towards a more sustainable solution.