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How is LPG produced?

23 Jun, 2023 | Business LPG, Residential LPG

In this article:

A quick summary of LPG production, transport and forms in which it is used
LPG Production

 LPG Gas Manufacturing Process from Fractional Distillation of Crude Oil

LPG is one of the refined products obtained from this LPG gas manufacturing process (NGL fractionation process).

After desalting, the heated crude oil is pumped into the distillation tower for fractional distillation of crude oil.

In the LPG gas manufacturing process, fractions of the flow are obtained from the side of the distillation tower at various heights between the bottom and the top.

Each extraction point in the LPG gas manufacturing process (NGL fractionation process) is temperature controlled to obtain a specific fraction including gasoline, naphtha, kerosene, diesel, light gas oil and heavy gas oil.

These are then sent to unique streams for storage or possible further processing. See LPG processing image HERE.

LPG Gas Manufacturing for Refining

LPG, with the lowest boiling point, is obtained from the top of the distillation tower, using the LPG gas manufacturing process (fractional distillation of crude oil).

This LPG product component can be used as a mixture or further separated into its three primary parts: propane, butane and isobutane.

How is LPG Transported

To transport or store it, LPG gas needs to be liquefied under pressure. LPG can be stored or transported in LPG gas cylinders or vessels. LPG (propane) can be transported in a number of ways, including by ship, rail, tanker trucks, intermodal tanks, cylinder trucks, pipelines and local gas reticulation systems.

LPG Ready to Use


In Australia, LPG is propane. Propane is the gas that is supplied to virtually all homes and most businesses that purchase LPG in Australia. LPG is supplied in gas cylinders that are either exchanged or refilled on site by LPG tankers. Large users may utilise bigger LPG storage tanks. The chemical formula for propane is C3H8.

LPG products go by a number of names in Australia including LPG, LPG gas, bottled gas, propane, BBQ gas, camping gas and LP gas. However, no worries, as it’s all the same gas.


Butane is also considered to be one of the LPG products. Butane is supplied to businesses that require butane, as opposed to propane. Butane has some specific applications where it has advantages over Propane. Aerosols and greenhouses both typically use butane. The chemical formula for butane is C4H10.

In conclusion

For something that exists naturally, the LPG gas manufacturing process (LPG production process) is complex and takes a lot of work to get LPG products to the point of use.

However, its clean burning, portability and versatility truly makes LPG worth the effort.

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