|
LP Gas
is a derivative of two large energy industries:
natural gas processing and crude oil refining.
When natural gas is drawn from the earth, it is a
mixture of several gases and liquids. Methane, which
is sold by gas utilities as “natural gas” constitutes
about 90 percent of this mixture. Of the remaining 10
percent, 5 percent is propane and 5 percent is other
gases such as butane and ethane. Before natural gas
can be transported or used, the LP Gases (which are
slightly heavier than methane, the major component of
natural gas) are separated out. Depending on the
”wetness” of a producing gas field, gas liquids
generally contain 1%-3% of the unprocessed gas stream.
Some LP Gases are also trapped in crude oil. In order
to stabilise the crude oil for pipeline or tanker
distribution, these “associated” or ”natural gases”
are further processed into LP Gas. Worldwide, gas
processing is a source of approximately 60% of LP Gas
produced.
In crude oil refining the LP Gases are the first
products produced on the way to making the heavier
fuels such as diesel, jet fuel, fuel oil, and
gasoline. Roughly 3% of a typical barrel of crude oil
is refined into LP Gas although as much as 40% of a
barrel could be converted into LP Gas. Worldwide,
crude oil refining is the source for the other roughly
40% of LP Gas supplies although the ratio between gas
processing and refining varies among regions.
LP Gas production from these sources is a natural
derivative. That means production of LP Gas is assured
since the primary motive for gas processors and
refiners is to produce fuels other than LP Gas but
first the LP Gases are produced. Although tied to the
production of natural gas and crude oil, LP Gas has
its own distinct marketing advantages and can perform
nearly every fuel function of the primary fuels from
which it is derived. |
