CHARTS

Historical Price Facts - Propane versus Gasoline
(Average Monthly prices)

Previous page

Supply Security

• Propane is a bi-product of both natural gas plant and oil refining processes
• Fortunately Canada is very deep in both gas processing facilities and Natural Gas reserves
• With a large and expanding market for natural gas available in the U.S., an abundant supply of propane for Canadian consumption is assured in the year 2000 Canada exported via pipeline networks more than 3.1 trillion cubic feet of natural gas
• Consequently, 85% of Canada's total propane production was derived from natural gas processing

Canadian Propane Domestic Demand vs. Export
000's of litres

Canadian Sources of Propane Production

• Wholesale supply prices are set by producers such as BP Canada and Shell Canada at major supply points in eastern and western Canada. The posted SarniaGate  and Edmonton Gate  FOB prices establish the standard for producer prices to wholesale distributors and propane marketing organizations in eastern and western Canada respectively
• Seasonal spikes can be severe but history indicates that while these are sharp, they are usually short-lived
• Fleet managers can minimize the risk inherent in these seasonal spikes by entering into medium to long-term pre-buy arrangements for estimated fuel needs during price-sensitive periods
• Other options available include becoming a member of a fuels buying group and leveraging group buying power with wholesale suppliers

Positive Environmental Impact

Numerous historical studies have drawn similar conclusions regarding the environmental advantages of propane versus gasoline.

Now the Department of Energy in the U.S., through Argonne Laboratories, has made available an interactive, dynamic comparative emissionsmodel for estimating the complete life cycle impact of various fuels on the environment. This Greenhouse Gases, Regulated Emissions, and Energy use in Transportation model referred to in acronym form as GREET allows researchers to evaluate various engine and fuel combinations on a consistent fuel-cycle basis.

Based on the results from the GREETmodel, the Chart below shows the emissions outcomes of near-term technologies using LPG vehicles relative to baseline gasoline vehicles fueled with conventional unleaded gasoline.The numbers clearly indicate that LPG (propane) offers significant emissions benefits compared to gasoline vehicles across the full spectrum of major emissions elements.

GREET Model of Propane Emissions
Relative to Gasoline

Web reference: www.transportation.anl.gov

Other Propane Advantages

• Longer Engine Life, Less Maintenance
• Propane is a uniform fuel which has a consistently reliable 20 25% higher octane value than regular gasoline without the need for fuel additives the variation in octane values which occurs in gasoline amongst a range of suppliers, additives and production quality ranges will generally tend to shorten engine life
• The result of consistently higher octane values is cleaner burning and more consistent ignition dynamics with less overall wear and tear (knock) on major engine components
• Cylinder wear is also lessened since there is no liquid fuel to collect on cylinder walls and wash down during fuel-rich starts
• Engine oil stays cleaner longer as propane combustion emits lessparticulate matter than gasoline
• Overall the result is extended engine life often 1-3 years longer than gasoline-powered engines -and the need for less maintenance

On-Site Storage and Refueling Advantages

• Propane refueling storage and dispensers can be installed on-site above ground which substantially eliminates environmental contamination concerns for fleet operators this means typically less risk and less cost for these facilities compared to underground gasoline storage systems
• Propane's pumping rate, 45 to 50 litres per minute, is comparable to that of gasoline. Propane is delivered through a sealed system, with a simple screwed connection thus protecting the environment. Evaporative emissions from gasoline have negative environmental effects.

Safety

• Propane has an enviable safety record due to the stringent codesand regulations developed by the propane industry in conjunction with the American National Fire Protection Association (NFPA).
• Propane has a narrow range of flammability, meaning the propane/air mix must contain from 2.2% to 9.5% propane vapour to ignite. Anyless than that and the mixture is too lean to burn; any more than that and the mixture is too rich to burn.

Studies Available

• Propane Production and Supply in Canada Report prepared by Chandra Prakash, Ph.D. November 2001
• Environmental Assessment of Propane as a Motor Vehicle Fuel Report prepared byChandra Prakash, Ph.D. November