Ontario Propane Blog

The Propane Story: Your Complete Guide Propane and its Uses

Posted by James Callow on Wed, Mar 31, 2021 @ 01:49 PM

Whether you are buying a new property off the grid, looking to find a new cost-effective way to power your business or simply need a gas supply to operate your barbecue, you have probably heard of propane gas before. 

Yet despite having used it, or perhaps even purchased it, many consumers in Ontario still don’t really know what propane is and why it’s more efficient, environmentally-friendly and cost-effective than more traditional sources of power. 

That’s why here at Budget Propane Ontario we have created this guide of everything you need to know about propane, including what it actually is, how it’s made, what its applications are and how much it costs. 

We hope it helps, and if you have any further questions we would love to hear from you. Please do contact us with any questions that you may have.

What is Propane?

Propane is a liquified petroleum gas (LPG) and is one of the cleanest-burning fossil fuels available on the market. It can be used in both residential and commercial applications as an alternative energy source, and is significantly more cost-effective than other fuels.

Propane is one of the cleanest, most affordable and versatile fuels, meaning it can be used to both save money as well as to reduce your residential or commercial carbon footprint for a more environmentally-friendly power supply. 

How is Propane made?

Propane is a by-product of natural gas processing and crude oil refining, with almost equal amounts of production derived from each of these sources. Due to Canada’s vast oil and gas industry, there is an abundant supply of propane in the country.

Propane from natural gas production

Propane is extracted from liquid components during natural gas processes to prevent condensation in natural gas pipelines. The extracted propane is stored and transported as a liquid, and an odorant is added to its naturally colorless and odorless state so that it is safer for both residential and commercial use. 

Propane from crude oil refining

During the oil refining process, fractional distillation is used and heavier hydrocarbons sink to the bottom and lighter hydrocarbons, including propane, are removed from the top layer of the mix. Butane and propane generally constitute around 1 to 4 percent of processed crude oil. 

What are the uses of Propane?

Propane is one of the most versatile fuels on the market with a wide range of applications. It can be used to power water heaters, home appliances, commercial appliances, vehicles, pool heaters, generators and so much more. 

In fact, hundreds of thousands of Canadians rely on propane for their home, businesses, farms and fleets, according to the Canadian Propane Association. Here are just a few of the many applications of propane, as published by the CPA.

At home:

  • Heat air and water
  • Fireplaces and cooking
  • Fridges and dryers
  • Pool heaters and generators

On the road:

  • School and transit buses
  • Taxis and courier vans
  • Police cars and other fleet vehicles

In agriculture:

  • Barn and greenhouse heating
  • Powering irrigation systems
  • Grain drying

In industry:

  • Mining operations
  • Construction heating
  • Powering forklifts
  • Metal processes

Here’s a breakdown of propane demand across Canada:

  • 28 percent - mining and oil and gas extraction
  • 24 percent - commercial/institutional
  • 17 percent - petrochemical and producer’s own use
  • 11 percent - residential
  • 8 percent - transportation
  • 7 percent - agriculture
  • 6 percent - manufacturing and construction

How much does Ontario propane cost?

If you’re looking to purchase propane, one of the things you have probably discovered is that propane prices fluctuate throughout the year. That’s because a number of factors impact the price of propane, including supply and demand, the price of natural gas and crude oil and the location in which it was produced. 

The good news? Canada is one of the cheapest places in the world to purchase propane. That’s because it is the seventh largest producer of propane in the world, with nearly 100 percent of the propane produced in Canada also used in Canada. 

Because of this, propane prices are actually relatively stable in Ontario. The biggest factor in which supplier you choose to purchase your propane from, particularly if you are looking for a long-term partner, is reliability. 

Budget Propane Ontario is a family-owned business that prides itself on excellent service and customer satisfaction throughout the central Ontario region. If you’re looking for a reliable and cost-effective propane supplier, contact us today!

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