What is Propane?
Propane — also known as liquefied petroleum gas, or LPG, and Propane AutoGas — is a compressed gas that is stored as a liquid. Propane is nontoxic; it is not harmful to water or soil if a spill were to occur. Propane is also colorless and virtually odorless; an odorant is added so it can be detected. Propane is frequently used for space and water heating, for cooking, and as fuel for engines such as forklifts; however, its uses are quickly growing due to technological advances. When used as vehicle fuel, propane is known as Propane AutoGas.
Where Does Propane Come From?
Propane is byproduct of domestic natural gas processing and crude oil refining. U.S. propane supplies are becoming increasingly abundant due in large part to increased supplies of natural gas.
- 97% of Propane is produced domestically, while the remaining is imported from Canada.
- Strong growth in propane supply is projected to come from the Marcellus shale play in the northeastern U.S. Industry insiders estimate the Marcellus shale single-handedly can supply more than 2 billion gallons of propane per year.
- Because of the extreme growth in U.S. sources of propane, the U.S. produces more than enough propane to meet current demand.