One of the advantageous of LNG vs Propane for industrial end users is that the price is very stable and easy for long term hedging. The price of LNG is based on the price of the underlying commodity which is natural gas, liquefaction costs and transportation costs.
In most cases, an Industrial end user can save between. Pioneer LNG works with many industrial end users looking to convert because of the fuel savings involved. Another major motivation for end user to convert is the ability to lock in prices with multiyear contracts. One of the hardest budgeting costs is energy because of price fluctuations.
Pioneer LNG solves that problem by offer long term fixed price contracts. With long term supply deals we can offset most infrastructure costs. To burn LNG at a site a cryogenic tank needs to be installed with a vaporizer.
A common question is can I use the existing propane tank on site and the answer is no, it must be a cryogenic tank. The foot print for the LNG tank is generally same if not smaller than a propane tank on site.
And although sometimes people tend to use them as synonyms, there are big differences between them. In this article, we compare natural gas to propane and highlight the greatest differences between them.
Natural gas is a non-renewable, odourless, colourless, flammable, and non-toxic hydrocarbon. There are other gases in the mixture as well: propane, butane, and ethane. Once natural gas is extracted from the ground it needs to be combined with crude oil to get the fuel we use on a daily basis. During this process propane, butane, and ethane are extracted. Propane is a non-toxic, colourless, and odourless gas, which is usually compressed and stored in liquid form.
Gas production is generally a chemical process. But is LPG the same as natural gas, given that other gases come about due to chemical composition? That question is only answerable after an in-depth look at the elements that make up each of the two fuels.
Technically, the two energy sources have different chemical compositions. LPG is liquefied petroleum gas which is either propane or butane with a heat content of On the other hand, natural gas is primarily methane and has a heat content of Both are crude oil products, but the energy content and density are different.
LPG comes in cylinders while natural gas in pipelines. The only similarity between the two is that they are both highly combustible. However, the fact that LPG gas has a higher calorific value means that a little bit of it goes a long way than natural gas.
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