CNG, LPG and biogas distribution and Conventional oil and gas production

Energy flows from conventional oil and gas production to CNG, LPG and biogas distribution; their prices have moved together.

CNG, LPG and biogas distribution (energy) and Conventional oil and gas production (energy): 2 relationships.

How they are linked

1. Energy flow

Physical flow · Direct · Conventional oil and gas production → CNG, LPG and biogas distribution

Gas processing separates propane and butane for LPG.

2. Price link: co-product

Cost and price · Strong · Both ways

Propane and butane are separated from oil and gas at processing plants and refineries, and LPG export prices often follow crude. Mont Belvieu propane and the crude proxy correlate at 0.66 monthly and 0.81 yearly.

• 0.66 monthly change correlation
• 0.81 12-month change correlation
• 0.65 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.