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How is LPG produced?

23 Jun, 2023 | Business LPG Blogs, Residential LPG Blogs

In this article:

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

Manufacturing Process from Fractional Distillation of Crude Oil

LPG is one of the refined products obtained from the 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 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 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 the processing image HERE.

Gas Manufacturing for Refining

LPG, with the lowest boiling point, is obtained from the top of the distillation tower.

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

How is it transported

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

Forms of Use


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

Other names in Australia include 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 manufacturing process (production process) is complex and takes a lot of work. However, its clean burning, portability and versatility truly makes LPG worth the effort.

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