Victorian Govt To Support Study Into LPG Conversion Facility Proposal

Mike Stevens | May 26, 2014

A proposal to develop a “world-class” LPG conversion facility for new cars, creating up to 500 jobs, has won the backing of the Victorian Government this week.

The plan, proposed by Gas Energy Australia and the Victorian Automobile Chamber of Commerce and first revealed in December last year, then found the support of Victorian Premier Denis Napthine.

Now, the state government has confirmed it will back a steering committee to further investigate the plan to launch a centre for the research, development and harmonisation of LPG vehicle manufacturing standards.

“Given that Ford, Holden and Toyota will cease car manufacturing in Australia at the end of 2017, we must seize all employment, production and regeneration opportunities in the automotive industry,” VACC Executive Director, David Purchase, said today.

The proposal initially included facilities in Melbourne, Geelong and Adelaide, although the South Australian Government has yet to announce further plans.

It is hoped that the new program will boost the ‘image’ of LPG by establishing design and manufacturing quality standards, along the lines of programs already in place in Europe and the US.

With a capacity for around 45,000 vehicles each year, the program could also help to reduce Australia’s dependence on overseas oil.

The program would focus on new vehicles only - particularly among fleet buyers - allowing existing businesses to continue with conversions of used and older cars.

“We hope support for this project in Victoria will lead to automotive industry partners coming on board and also stimulate interest from the Federal Government,” Gas Energy Australia boss Mike Carmody said.

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Filed under: victoria, vacc, lpg, News, industry

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  • Urban Slime says,
    1 year ago
    Good luck... You will need it.
  • tony reed says,
    1 year ago
    good idea , but why grow this industry if australians pay the same price for lpg as the rest of the world (price set from singapore) so whats the advantage , just because we have abundance of lpg and sell it for 6 cents a litre to japan and china ( i think i read that) , and if people turn to lpg the government will just do what they always do and jack up the prices like they have done so unless their is a guarantee don't bother
    • MotorMouth says,
      1 year ago
      1 like
      The simple answer is that it is not about making driving cheaper for you. LPG is a much cleaner burning fuel than petrol, it is an environmentally sound choice. As for selling LPG to China for 6c a litre, I'm sure they'd do you a good price if you were buying several gigalitres at a time, too, but you're not which puts another two or three links in the supply chain, each of which has costs that have to be recouped.
  • Andy says,
    1 year ago
    Good idea, but we should set our own (cheaper) prices, stuff the rest of the world. Why on earth is our price set by Singapore!!!! We should look after our own.
    • MotorMouth says,
      1 year ago
      Our price is set by Singapore because the automotive LPG we use today comes from refining crude oil, not from the gas fields of the Northwest Shelf.
  • martin says,
    1 year ago
    hey, we have two local manufacturers making fine examples of factory LPG cars! ....oh, hang on, we're shutting them down soon aren't we.
  • Rebe says,
    1 year ago
    As long as LPG prices are tied to international prices, their is no point in the average family converting their car to LPG. Friends in the LPG conversion market have told me conversions numbers have dropped significantly, and taxis have started switching to hybrid cars in greater numbers. It,s time for LPG to RIP.
  • Bob says,
    1 year ago
    One word for you: CNG

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