# 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.

Source page: https://www.materialinsights.org/links/cng-lpg-and-biogas-distribution-and-conventional-oil-and-gas-production/

[CNG, LPG and biogas distribution](https://www.materialinsights.org/energy/e_cng_lpg/) (energy) and [Conventional oil and gas production](https://www.materialinsights.org/energy/e_oil_gas_conv/) (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.