LPG vs Natural Gas in Australia: What You Need to Know
Gas is a common energy source in Australia, used for cooking, heating, and BBQs. Households and businesses mainly use two types: Liquefied Petroleum Gas (LPG) and natural gas. While they can power similar appliances, they differ in cost, availability, performance, and environmental impact. In cities, natural gas is popular because it’s supplied through pipelines. In rural or off-grid areas, LPG is more accessible and commonly used. Understanding these differences can help you choose the right option for your needs.
What Types of Gas are Available in Australia?
In Australia, the two main types of gas for household and business use are LPG and natural gas. Each gas type has its advantages and disadvantages, depending on factors like location, price, and environmental considerations. LPG is widely available across the country, especially in rural or remote areas, while natural gas is more prevalent in cities and larger towns. There are many gas providers all around Australia that carry both types of gas, but what is the difference and which is better?
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What is LPG?
Liquefied Petroleum Gas (LPG) is a mixture of propane and butane gases, which are byproducts of oil and natural gas production. LPG is stored in pressurized containers that keep it in liquid form. It is commonly delivered to homes in tanks or cylinders and is used for various purposes, including cooking, water heating, space heating, and BBQs.
One of the key advantages of LPG is its portability. Since it is stored in bottles or cylinders, it can be transported to remote areas where natural gas pipelines are not available. This makes LPG ideal for rural homes or businesses and for outdoor cooking and heating appliances. In Queensland, companies like Agas National provide reliable LPG delivery services, ensuring homes and businesses have a steady supply of gas.
LPG burns hotter than natural gas, which can be beneficial for cooking applications. It also tends to produce fewer harmful pollutants compared to some other fossil fuels, though it does have a higher carbon content per unit than natural gas.
What is Natural Gas?
Natural gas is primarily composed of methane, a lighter and less dense gas than the propane and butane found in LPG. It is extracted from underground reservoirs and transported to homes and businesses through an extensive network of pipelines.
Natural gas is commonly used for indoor cooking, water heating, space heating, and even cooling in some cases. Unlike LPG, which is stored in containers and needs regular refills, natural gas is delivered continuously through pipelines, making it a more convenient option for households with access to the grid.
One of the biggest benefits of natural gas is its lower cost per unit of energy compared to LPG. It also produces fewer greenhouse gas emissions per unit of energy, making it a more environmentally friendly choice. However, natural gas availability is limited to areas with pipeline networks, which are primarily in cities and urban areas.
What is the Difference Between LPG and Natural Gas?
Gas is a common energy source in many households and businesses, but not all gases are the same. The two main types of gas used are Liquefied Petroleum Gas (LPG) and natural gas. They have some key differences that affect their performance, cost, and environmental impact. Understanding these differences can help you choose the best option for your needs.
Composition:
LPG is made up of propane and butane, which are heavier gases. These gases can be easily compressed into a liquid, allowing them to be stored in pressurized tanks. On the other hand, natural gas is primarily methane, a lighter gas that remains in its gaseous form under normal conditions.
Energy Content (Calorific Value):
LPG has a higher calorific value than natural gas, which means it produces more heat per unit. This makes LPG more efficient for tasks like cooking or outdoor heating, as a small amount can create a hotter flame than the same amount of natural gas. However, natural gas tends to be cheaper per unit, so despite having a lower calorific value, it can still be a more affordable option for larger or continuous energy use.
Which is More Environmentally Friendly?
When it comes to environmental impact, natural gas generally has the edge over LPG. Natural gas produces lower carbon dioxide emissions per unit of energy, making it a more climate-friendly option. This is because methane (the main component of natural gas) burns more cleanly than the heavier hydrocarbons in LPG.
That said, LPG still burns cleaner than many other fossil fuels, such as coal and heating oil. In rural areas where renewable energy options are limited, LPG can be a relatively eco-friendly choice. For households looking to reduce their carbon footprint, natural gas or renewable alternatives may be the better option.
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Where is LPG Available?
LPG is widely available throughout Australia, particularly in rural and remote areas where natural gas pipelines are not accessible. In Queensland, LPG can be delivered to homes and businesses in pressurized tanks or cylinders. Many suppliers offer regular delivery services to ensure a steady supply.
Some of the major LPG suppliers in Australia include:
- Origin Energy: One of Australia’s largest LPG suppliers, offering delivery services to most regions. They are also convenient because it is easy to contact their customer service to switch to cheaper rates.
- Elgas: Known for its wide distribution network, reliable delivery services, and easy to contact customer service.
- Kleenheat: Supplies LPG across various regions, especially in Western Australia and Queensland. Their customer service is easy to contact to get the cheapest rates.
Because LPG is portable, it’s a great choice for households or businesses in off-grid locations.
Where is Natural Gas Available?
Natural gas is more common in urban and suburban areas with established pipeline infrastructure. In Queensland, cities like Brisbane, the Gold Coast, and Toowoomba have extensive natural gas networks. However, rural areas may not have access to natural gas pipelines and must rely on LPG or other energy sources.
The major natural gas suppliers in Australia include:
- AGL: Offers natural gas connections and competitive pricing in Queensland and other states.
- Origin Energy: Provides natural gas services in addition to LPG.
- Alinta Energy: Known for its affordable gas plans and customer service.
If you’re unsure whether natural gas is available at your property, contact your local distributor or use their online availability checker tools.
Which is Cheaper? LPG vs Natural Gas
Natural gas is generally cheaper than LPG per unit because it is distributed through pipelines and doesn’t require storage or delivery. This cost advantage makes natural gas a more economical option for households with high energy usage.
However, there are some additional costs to consider for natural gas, such as connection fees if you don’t already have a pipeline connection. LPG, while more expensive per unit, offers the flexibility of portable tanks and is ideal for those who don’t have access to natural gas infrastructure.
Which is cheaper per state/territory?
The cost of LPG and natural gas can vary significantly depending on where you live in Australia. Factors like supply availability, distribution infrastructure, and regional demand all impact the prices. Let’s break down the typical pricing by state and territory and mention where the major providers operate.
LPG vs Natural Gas per state / territory
Queensland
In Queensland, natural gas is often cheaper than LPG, especially in urban areas with extensive pipeline networks like Brisbane, the Gold Coast, and Townsville. Rural regions rely more on LPG due to the limited availability of natural gas pipelines.
Suppliers:
- Origin Energy: Available in both LPG and natural gas.
- Elgas: Provides LPG throughout Queensland, including rural and regional areas.
- AGL: Offers natural gas plans for urban and semi-urban households.
- Agas National: A dedicated LPG supplier in Queensland that offers reliable delivery services for households and businesses.
New South Wales (NSW)
New South Wales has one of the most extensive natural gas networks, especially in cities like Sydney and Newcastle. Natural gas is generally more cost-effective for regular use compared to LPG. However, LPG remains a popular choice for rural or off-grid areas.
Major Suppliers:
- Origin Energy: Supplies both natural gas and LPG across NSW.
- Elgas: Widely available for LPG customers.
- AGL: Offers natural gas services in major urban areas.
Victoria
Victoria has one of the highest rates of natural gas usage in Australia, thanks to its well-developed pipeline infrastructure. In cities like Melbourne and Geelong, natural gas is typically much cheaper than LPG. However, rural areas may still rely on LPG due to limited pipeline connections.
Major Suppliers:
- Origin Energy: Provides both natural gas and LPG in Victoria.
- Elgas: A major supplier of LPG across the state.
- Alinta Energy: Offers natural gas plans in Victoria.
South Australia
South Australia has a well-developed natural gas network in Adelaide and surrounding areas. Natural gas is generally cheaper than LPG for continuous use, though LPG is still popular in rural areas.
Major Suppliers:
- Origin Energy: Supplies both LPG and natural gas.
- Elgas: A key LPG provider in South Australia.
- AGL: Provides natural gas plans for households in urban and semi-urban areas.
Western Australia
Western Australia is unique because of its abundant natural gas resources. In cities like Perth, natural gas is widely available and very cost-effective compared to LPG. Rural areas rely more on LPG due to limited pipeline infrastructure.
Major Suppliers:
- Engie: A major LPG and natural gas provider in WA.
- Origin Energy: Supplies LPG in many parts of the state.
- Alinta Energy: Offers competitive natural gas plans in urban areas.
Tasmania
Tasmania has more limited natural gas infrastructure compared to mainland states. Natural gas is mainly available in Hobart and a few other urban areas, making it more expensive than in states like Victoria or NSW. LPG is the more common choice across the state.
Major Suppliers:
- Solstice Energy: The main LPG provider in Tasmania.
- Aurora Energy: Supplies LPG but not natural gas in most areas
Australian Capital Territory (ACT)
The ACT benefits from its proximity to New South Wales’ natural gas infrastructure. In Canberra, natural gas is generally cheaper and more accessible than LPG. However, LPG remains popular for BBQs and off-grid uses.
Major Suppliers:
- Origin Energy: Provides both natural gas and LPG in the ACT.
- Elgas: Supplies LPG in Canberra and surrounding areas.
- AGL: Offers natural gas services in the region.
The overall cost comparison between LPG and natural gas typically follows this trend across most regions:
- Natural Gas: Generally cheaper per unit in states with extensive pipeline infrastructure (e.g., Victoria, NSW, WA).
- LPG: More expensive per unit but often the only option in rural and remote areas.
For households in urban areas with access to natural gas, switching to natural gas is typically more cost-effective. However, for rural households, LPG offers flexibility and convenience where pipelines are unavailable.
By knowing which suppliers operate in your state or territory, you can better compare costs and choose the most suitable energy source for your needs. Always check with local suppliers for the latest pricing and availability before making a decision.
How to Switch from LPG to Natural Gas
Switching from LPG to natural gas can be a simple process, but it requires a few key steps to ensure everything is set up correctly.
- The first step is to ensure that natural gas is available in your area. Natural gas is usually supplied through a pipeline network, so it’s essential to confirm that your property is connected to this network.
- Reach out to your current gas supplier or a natural gas provider. They can guide you through the switching process and may offer new contracts or rates.
- A qualified gas technician or plumber is required to make the switch. They will need to safely disconnect your LPG system and install the necessary components for natural gas, such as regulators and new gas lines if needed.
- Not all appliances that work with LPG can automatically work with natural gas. Some appliances may require modification or replacement of certain components (e.g., gas burners, pressure regulators) to be compatible with natural gas. Your technician can help with these adjustments.
- Once the installation is complete, a final inspection is needed to ensure everything is working properly and safely. Your gas provider may require this before activating the natural gas supply.
Cooking and Heating Performance
LPG is often preferred for outdoor cooking and BBQs because of its portability and the strong, hot flame it produces. Many BBQ enthusiasts favor LPG for its ability to reach high temperatures quickly, making it ideal for searing meats and grilling vegetables.
For indoor cooking and heating, both LPG and natural gas are effective. LPG’s higher calorific value means it can produce a more intense flame, but natural gas is more cost-effective for long-term use due to its lower price per unit.
Should I use LPG or Natural Gas?
Choosing between LPG and natural gas depends on your location, energy needs, and environmental priorities. If you live in an urban area with pipeline access, natural gas is often the more cost-effective and environmentally friendly option. However, if you’re in a rural or off-grid location, LPG offers flexibility and convenience.
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1300 483 503FAQ LPG vs Natural Gas
How do I know if I have LPG or natural gas?
You can typically tell by checking your appliance or gas meter. Natural gas is supplied through a fixed pipeline connection, while LPG is delivered in tanks or cylinders.
Is LPG being phased out in Australia?
There are no immediate plans to phase out LPG. However, Australia is shifting towards renewable energy sources, so future energy options may change.
What are the disadvantages of LPG?
LPG is more expensive per unit than natural gas, requires regular refills or deliveries, and produces more carbon emissions per unit of energy.
Which is better for BBQs: LPG or natural gas?
LPG is generally preferred for BBQs because it’s portable and produces a strong, hot flame.
Which is cheaper: LPG or natural gas?
Natural gas is typically cheaper than LPG due to its lower production and distribution costs.
