How is LPG made

Where Does LPG Come From? How is LPG Made? What is the Production Process?

  • LPG comes from drilling oil and gas wells.
  • It is a fossil fuel that does not occur in isolation.
  • LPG is found naturally in combination with other hydrocarbons, typically crude oil and natural gas.
  • LPG is produced during natural gas processing and oil refining.
  • It is isolated, liquefied through pressurisation and stored in pressure vessels.
  • The typical LPG gases – propane and butane – are regarded as Natural Gas Liquids - NGLs.
  • However, not all NGLs are LPG.
  • LPG is made during natural gas processing and oil refining.
  • LPG is separated from unprocessed natural gas using refrigeration.
  • LPG is extracted from heated crude oil using a distillation tower.
  • This LPG can be used as is or separated into its three primary parts: propane, butane and isobutane.
  • It is stored pressurised, as a liquid, in cylinders or tanks

LPG is Refined from Oil & Natural Gas


  • LPG is produced during natural gas processing and petroleum refining.
  • Propane does not occur naturally in isolation.
  • LPG processing involves separation and collection of the gas from its petroleum base.
  • LPG is isolated from the hydrocarbon mixtures by separation from natural gas or by the refining of crude oil.
  • Both processes begin by drilling oil wells.
  • The gas/oil mixture is piped out of the well and into a gas trap, which separates the stream into crude oil and "wet" gas, which contains LPG and natural gas.
  • The heavier crude oil sinks to the bottom of the trap and is then pumped into an oil storage tank for refining.
  • Crude oil undergoes a variety of refining processes, including catalytic cracking, crude distillation, and others.
  • One of the refined products is LPG.
  • Once refined, LPG is stored as a liquid under pressure in gas bottles - cylinders or tanks.
  • The natural gas, which is mostly methane, is piped to towns and cities for distribution by gas utility companies.
  • The petrol is shipped to service stations