What’s the Difference Between Natural Gas and LPG?

ATCO’s energy analysis reveals that converting from LPG to natural gas can lead to annual savings of up to 38%. But how do you know which one is the best fit for your needs? And what exactly sets them apart?

In this blog, we’ll explore the difference between LPG and natural gas, highlighting their characteristics and advantages. By the end, you’ll have a clearer understanding of which option works best for your home.

An Overview of LPG and Natural Gas

If you are wondering “what is LPG?”, LPG stands for Liquefied Petroleum Gas. It’s a fuel that’s derived from natural gas processing and crude oil refining. It’s most commonly used in areas that aren’t connected to mains gas, making it a go-to solution for those living in rural or remote locations.

On the other hand, natural gas is a fossil fuel composed mainly of methane, a compound that occurs naturally in underground reservoirs. Natural gas is supplied via an underground pipeline, known as the mains gas supply. Most urban and suburban areas are connected to the mains, which makes natural gas an easy and reliable energy source for homes in these areas.

What Type of Gas Is Used in Homes?

Both natural gas and LPG are commonly used to power household appliances:

• Natural Gas: Natural gas is used to fuel cooktops, ovens, heating systems, and hot water systems. It provides a steady energy supply for households with moderate to high gas needs.
• LPG: An excellent alternative for homes that require flexibility, LPG is used in much the same way as natural gas. It’s especially useful in homes where portability is needed, such as for outdoor appliances like BBQs or if appliances need to be moved around.

Natural Gas vs LPG: What’s the Difference?

1. Supply and Storage

• Natural Gas: Supplied through pipelines directly into your home. It’s continuous and doesn’t require storage tanks.
• LPG: Stored in pressurised tanks. You’ll need to monitor your levels and arrange for refills.

2. Cost

• LPG: In Sydney, the refill price for a 45kg LPG starts around $150-180. Prices can vary depending on your supplier and delivery charges.
• Natural Gas: Natural gas price range is between $1.50 and $4.00 per gigajoule (GJ), depending on factors such as location and supplier. For a typical household, monthly costs for natural gas can range from $22.50 to $60.00 for low usage (around 15 GJ per month) and from $60.00 to $160.00 for higher usage (around 40 GJ per month).

When comparing natural gas to LPG, 45kg of LPG is equal to about 2.07 GJ. Given that LPG can cost around $150 to $180 per refill (for 45kg), this makes LPG a more expensive option in terms of cost per gigajoule, especially for households with higher energy consumption.

3. Efficiency

• Natural Gas: While it burns at a lower temperature than LPG, it’s still an effective and efficient choice for a variety of applications.
• LPG: LPG burns hotter than natural gas, which makes it particularly suitable for cooking and heating.

4. Environmental Impact

• Natural Gas: Considered to be a cleaner fossil fuel, natural gas produces fewer emissions than coal or oil-based energy sources.
• LPG: LPG burns cleanly and also produces fewer emissions compared to other fuels like coal or oil. However, it has a slightly higher carbon footprint than natural gas due to the refining process involved in its production.

Common Myths About LPG

Myth 1: LPG is Only for Outdoor Use

A common misconception is that LPG is only suitable for outdoor appliances. In reality, LPG is also a great choice for indoor appliances, as long as proper ventilation and gas leak detectors are used.

Myth 2: LPG Tanks Are Difficult to Manage and Maintain

Another myth is that LPG is difficult to manage. While it’s true that LPG tanks need to be monitored and refilled, many suppliers offer convenient delivery services and refill reminders to ensure you never run out unexpectedly.

Myth 3: LPG is Dangerous to Use

LPG is a safe and widely used fuel when handled correctly. It has built-in safety features, such as odorants to detect leaks, and appliances are designed to minimise risks. Natural gas, while generally safe, also carries risks and requires regular maintenance and safety checks.

How Do I Know If I Have LPG or Natural Gas?

It’s easy to find out whether you have LPG or natural gas in your home. Here are a few simple ways to check:

• Check your gas meter: For mains gas supply, a gas meter will be installed by your provider, often near your driveway or in a utility area.
• Look at your gas appliances: Gas appliances are designed for either LPG or natural gas. Check the labels or manuals on your appliances to see which type of gas they require.
• Ask your supplier: If you’re still unsure, your gas supplier should be able to confirm what type of gas you have based on your address.

Final Thoughts: LPG or Natural Gas?

Choosing between LPG or natural gas really depends on your needs and location. If you live in a major city like Sydney and have access to mains gas, natural gas is the more cost-effective option. However, for those in rural or remote areas, LPG offers a reliable solution.

If you’re unsure about the best option for your property, speak to our qualified gas fitter Sydney who can guide you based on your needs. You can call us at 1300 319 275 or submit our online form for a consultation. Our team will ensure you get the best advice and service, making your gas installation hassle-free.