• A step forward for LPG's industrial energy conversion Morocco

Fuel for Thought

A step forward for LPG's industrial energy conversion Morocco

Aug 15 2023

During the ongoing energy transition, TotalEnergies Marketing Maroc is helping industrial companies in Morocco make the shift to LPG (liquefied petroleum gas). This alternative energy source not only offers a reduction in CO2 emissions but also enhances energy efficiency. Bouchra Bel Abbes, the Gas Director of the subsidiary, has launched the innovative strategies used to provide manufacturers with a less carbon-intensive energy solution that aligns seamlessly with climate objectives.

Since 2018, TotalEnergies Marketing Maroc has been advocating for a transition among industrial players in the B-to-B sector, urging them to transition from conventional fuel oil to more sustainable LPG. This strategy finds its roots in the company's strong climate commitments, whilst addressing the economic and supply security challenges. Furthermore, this also aligns with Morocco's national roadmap for energy transition.

Industries that thrive on energy-intensive processes have had to rely on conventional fuel oil; however, they have faced mounting challenges in terms of maintenance and environmental issues. TotalEnergies Marketing Maroc is now offering B-to-B customers the chance to pivot from fuel oil to LPG. This is achieved by identifying prospects primed for this change and tailoring the sales approach to cater to each organisation’s unique requirements. This approach has proven its efficacy over the recent years.

The prospective clients encompass a wide variety of manufacturers, from those employing 7* fuel oil to urban-based operations seeking substantial investments to reduce emissions and disturbances. Notably, the focus extends to industries grappling with fuel-related maintenance costs exceeding $30,000 annually, which equates to 5% of their total energy expenses. The subsidiary also casts its gaze towards subsidiaries of multinational corporations with global environmental strategies in place.

Notably, TotalEnergies Marketing Maroc have introduced a hybrid solution featuring a dual oil/LPG burner for clients on the fence. The installation costs are absorbed by the company to grant these entities a hands-on experience of the benefits intrinsic to LPG. Often, the simple act of highlighting the environmental and inherent advantages of LPG serves as a compelling factor in clinching conversions.

Despite the undeniable merits of transitioning, the cost differential between fuel oil and LPG emerges as a formidable barrier. The volatility of LPG prices further compounds economic uncertainties, and the exclusivity clauses tied to LPG contracts occasionally create hesitancy. Additionally, regulatory prerequisites encompassing health, safety, and environmental considerations can cast a shadow of uncertainty for certain clients. However, TotalEnergies remains steadfast in its commitment to safety and quality, bolstering the company's reputation among customers. To ensure seamless transitions, the company emphasizes specialized commercial and technical prowess, fortified by rigorous in-house training.

In 2022, Morocco saw the sale of 444,000 tons of LPG, including 402,000 tons in packaged forms (butane and propane), with an additional 42,000 tons in bulk. The trajectory indicates a potential surge of 10,000 tons in the forthcoming years.

The transformation from fuel oil to LPG offers a dual benefit - one of environmental consciousness and energy efficiency - to manufacturers. Despite the array of economic, regulatory, and safety challenges, TotalEnergies remains completely committed to spearheading Morocco's industrial sector towards a more sustainable future. In doing so, the company not only secures a resilient energy landscape but also contributes substantively to the broader global objective of mitigating climate change.

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