How is Propane Produced?

How is Propane produced?

Propane processing has changed in many ways since its early years, and there are two main ways propane is produced today – refining and natural gas production.

Propane from natural gas production

Propane and butane are extracted from liquid components during natural gas processing to prevent condensation in natural gas pipelines. Since propane is 270 times denser than gas, the extracted propane is stored and transported as a liquid.

The next step is to add an odorant to the propane because it is naturally colorless and odorless. It ensures that you can easily work out where it’s coming from in the rare event of a propane leak.

Get Propane Refills on a Schedule

Refilling your tank might make you think of a propane truck backing down your driveway to fill your tank at your house. However, propane refill is also used to describe filling propane tanks at a propane provider or retail location. For example, with a propane refill in Santa Fe Springs, you bring your propane tank, most often a grill tank, to a propane provider or a retailer to fill it.

Retailers who offer propane refill in Riverside have a large propane tank with special equipment called a dispenser, allowing them to refill your propane tank safely.

Why propane gas retailers change prices with the unexpected weather patterns and demand?

The supply and demand of any commodity determines its prices. In simple terms, what does it mean that when there is enough supply, the prices will drop, and prices will increase if the commodity is scarce. Contact United Propane, if you are searching for the propane gas retailers near me.

residential propane services

A similar idea applies to propane prices also. It means the prices will rise during the high demand, usually in the cooler months, and prices will fall when the weather is warm.

Unique circumstances govern wholesale propane prices in the USA. Many factors can influence its price, which is different even from other energy sources.

The main factors affecting the sales price are crude oil and natural gas prices, supply proximity, production, exported volumes, weather, and cyclical demand periods .

Crude Oil and Natural Gas Prices

Liquid petroleum gas is a byproduct of crude oil refining and natural gas processing. Approximately 70 percent of the U.S.’s propane supply is produced by processing natural gas. Therefore, if there are fluctuations in the price of crude oil, it will reflect the wholesale price of the propane.

residential propane gas

United propane offers residential propane tank services for your operation from multiple propane terminal locations to ensure competitive pricing and supply surety. Although we have rich experience in the propane industry, we know what supply sources are most reliable and how to buy competitively. Contact us today.

Proximity of Supply

Transportation costs can have a significant impact on the prices of propane. For example, propane prices in the USA are based on the distance from the large’s storage hubs. If you live closer to areas with a propane storage hub, you will likely