Where does LPG come from?

It all starts with nature. Propane and butane, which make up LPG, are naturally occurring. The majority of LPG is recovered during natural gas and oil extraction whilst the remaining 40% is a co-product of oil refining or made from waste or renewable vegetable oils.

Episode 2

Story of LPG

Natural Gas Processing

Oil Refining

BioLPG

Natural Gas Processing

Most natural gas wells are ‘wet’ wells. As natural gas comes out of the ground, it contains a number of other Natural Gas Liquids (NGLs) that represent up to 10% of the total volume. These include, amongst others, propane, isobutane and butane, also known as LPG. Before natural gas is marketed, some NGLs, including propane and butane, are separated out of the unprocessed gas stream.

Worldwide, gas processing is the source of approximately 60% of LPG produced.

Oil Refining

LPG is also a co-product of oil refining. In an oil refinery, LPG is produced at various stages: atmospheric distillation, reforming, cracking and others.

The LPG produced will represent between 1 and 4% of crude oil processed. This yield will depend on the type of crude oil, the degree of sophistication of the oil refinery and the market values of propane and butane compared to other oils products.

Worldwide, refining is the source of approximately 40% of LPG produced.

BioLPG

Recently, new methods of producing LPG from renewable sources and waste have emerged. These forms of BioLPG combine all the benefits of LPG with extremely low carbon emissions.

BioLPG, or Renewable LPG, is created from renewable and waste materials. The feedstocks undergo a series of sophisticated treatments to purify their energy content.

BioLPG/Renewable LPG is chemically identical to conventional LPG. It can replace conventional LPG but the two can also be blended and used by existing appliances.

Although tied to the production of natural gas and crude oil, LPG has its own distinct advantages and can perform nearly every fuel function of the primary fuels from which it is derived. The fact that it can be easily liquefied makes LPG a highly versatile energy alternative and thanks to a wide variety of packaging and storage options, LPG has numerous fuelling applications.