About Propane. Propane is an alkane which occurs naturally in petroleum and natural gas. Propane is in the group of liquefied petroleum gases (LPG) along with butane, propylene, butylene, and isobutylene. It is hardly found in nature besides petroleum deposits. Propane was discovered in 1857; however, it only became industrially produced in the start of the twentieth century, when it started being a component in gasoline in the United States. It is widely used in domestic applications and in the chemical industry worldwide.

Propane trade can proceed in the spot market for immediate delivery. Spot prices, unlike contract prices, depend on commodity availability and are vulnerable to disruptions like plant closures, natural disasters, supply shortages, or changes in regulations by country governments. Conversely, lower demand and increased producer inventories tend to drive spot prices down.

Propane Handling. Propane should be stored in cylinders as a liquid with a vapor space above, in cool, dry, well-ventilated areas, away from direct sunlight. Bulk quantities of Propane are usually transported by pipeline, rail, ships, barge, or tankers. The maximum capacity of a pressurized ship transporting Propane is limited to about 2,000 m3 due to high manufacturing costs. Semirefrigerated ships usually hold 2,500 – 5,000 m3, with fully refrigerated ships having capacities up to 100,000 m3. Alternatively, cargo may be transferred into smaller coastal tankers for delivery of refrigerated products to smaller terminals which cannot receive large oceangoing ships.

Propane Uses. Propane is mainly employed as fuel for engines and heating applications (domestic and industrial); in the production of a host of organic chemicals in steam cracking; as a refrigerator; and as a propellant.