Natural gas vehicles (NGVs) use natural gas as an alternative fuel to traditional gasoline and diesel. These alternative fuel vehicles have been around since the 1930s but were overtaken by gasoline and diesel-powered vehicles. With the growing need for sustainable solutions, NGVs are experiencing a resurgence.

Today, the global presence of natural gas vehicles is over 23 million, while the United States has over 135,000 NGVs on its roads. This guide highlights how these alternative vehicles work, some of their benefits, challenges and available infrastructure.

How Natural Gas Vehicles Work

Natural gas vehicles work the same way gasoline vehicles do since they have spark ignition combustion engines. In these engines, fuel mixed with air enters the combustion chamber, where it’s compressed and ignited by a spark plug. Compressed natural gas (CNG), which is typically stored in a fuel cylinder at the back or under the vehicle, flows through a high-pressure fuel line into a pressure regulator that reduces the pressure to match the engine’s system before the fuel enters the combustion chamber.

Once ignited, the expansion of CNG inside the combustion chamber forces the piston to move, generating the torque needed for the vehicle to operate.

Types of Natural Gas Used

Natural gas is present in diverse forms. NGVs are designed to run on distinct versions of these gases. Here are the different types of natural gas and their uses in NGVs:

Compressed natural gas (CNG): This gaseous fuel is composed mainly of methane and compressed to a high pressure of about 3,000 to 3,600 psi, making it less than 1% of its volume. CNG is the most preferred natural gas fuel for NGVs.
Liquefied natural gas (LNG): This is natural gas cooled into liquid form at about minus 260 degrees Fahrenheit (minus 161.5 degrees Celsius). In this state, LNG offers higher energy density than CNG and is best suited for heavy-duty vehicles like long-distance trucks.
Adsorbed natural gas (ANG): This is natural gas stored in a porous adsorbent system and is designed to counter the storage limitations of CNG and LNG.

Components of a Natural Gas Vehicle

Natural gas vehicles have various components that work together for the vehicle to operate. Here are the key components of NGVs:

Fuel tank: Like gasoline or diesel tasks, these tanks store the vehicle’s fuel, which in this case is compressed natural gas.
Fuel line: A tube, metallic or otherwise, that allows the flow of fuel from the fuel tank to the fuel system.
Pressure regulator: A device directly below the fuel tank that lowers CNG pressure to a level compatible with the engine’s fuel injection system.
Natural gas fuel filter: A filtration system that eliminates contaminants and byproducts from CNG to prevent damage or blockage inside the engine system.
Fuel injection: A fuel system component responsible for injecting fuel into the combustion chamber.
Internal combustion: Engine configuration where fuel is combined with air in a combustion chamber or intake manifold and ignited by a spark plug.
Exhaust system: A system designed to flush exhaust gases from the engine through the tailpipe.
Transmission: A medium that transmits power from the engine to the wheels.
Electronic control module: A control unit that manages engine performance. It monitors and regulates fuel injection, ignition timing and other key engine processes. 
Battery: Like other fuel-based vehicles, NGVs also have batteries that supply electricity to kick-start the engine and power other electronics.

Benefits of Natural Gas Vehicles

Natural gases, whether renewable or conventional, have unique qualities over gasoline and diesel. It’s these qualities that make up the benefits of NGVs such as:

Fuel Efficiency

Alternative fuels and energy efficiency are key when considering NGVs. While these vehicles are similar to their diesel and gasoline-powered counterparts in terms of power, speed and acceleration, they may offer better fuel economy. The reason is that CNG engines have a higher pump octane number compared to gasoline.

Environmental Impact

Natural gas is one of the cleanest fuels available, making NGVs better for the environment than diesel and gasoline vehicles. When fueling NVGs, these gases produce 20% fewer greenhouse emissions. Additionally, NVGs can’t release evaporative emissions since CNG fuel systems are sealed.

Cost Savings

Generally, NGVs are more cost-effective than vehicles powered by traditional fuel, and that is due to the low retail price and stability of natural gas. The U.S. has vast reserves of natural gas, allowing domestic price-setting and eliminating market fluctuations common with crude oil. As of October 2024, the retail price of CNG was lower than that of gasoline and diesel.

Challenges of Using NGVs

One of the attractive aspects of natural gas vehicles and their functioning is their great potential to reduce carbon emissions. However, NGVs have challenges holding back their adoption, such as:

High upfront costs: NGVs are still more expensive upfront because their systems cost more to produce. The fuel tanks, for example, must be sturdy enough to support high-pressure gas, making its production costly.
Limited fueling infrastructure: There are still few natural gas fueling stations across the nation, most of which are located in areas that service long-haul trucks.
Performance issues: NGVs typically have a lower driving range than their crude oil counterparts due to the low energy density of natural gas.
Limited driving range: Unlike large commercial trucks, smaller NGVs have small tanks, which limits driving range due to the need for refueling.

Infrastructure and Support for NGVs

The support and infrastructure for NGVs in the U.S. are increasing, and the aim is to promote their adoption and improve the nation’s energy and fuel conservation measures. Some of the strategies in place are increased availability of fueling Infrastructure and government incentives.

About 1,000 natural fueling stations are available to the public across the country. The majority of those offer CNG, with about 50 offering the alternative LNG. For business and fleet managers, the increased availability of reliable natural gas suppliers provides an opportunity to install small fueling equipment and source gas in bulk.

Several states have provided incentives, such as tax credits, rebates and vouchers for NGVs and infrastructure owners, to encourage the adoption of natural gas vehicles.

Adopting Natural Gas Vehicles for Your Business

If you’re wondering how to adopt NGVs for your business, consider these two factors:

Fleet optimization: Converting your fleet to utilize natural gas has unique advantages that positively affect your bottom line. Qualities like fuel efficiency and the low cost of retail gas will help improve fleet performance while cutting down on fuel costs.
Cost-benefit analysis: Purchasing NGVs or converting traditional vehicles to use natural gas is costly upfront. However, natural gas is often less expensive, and there are tax credits and incentives that contribute to a good return on investment (ROI).

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Get Reliable CNG Supply From Meritus Gas Partners

NGVs are a step toward a more eco-friendly future, aligning with the global sustainability movement. Besides this critical aspect, NGVs are similar to diesel and gasoline-powered vehicles in terms of operation. That means switching to natural gas may offer more benefits than downsides to your business.

At Meritus Gas Partners, we partner with trusted gas suppliers nationwide. With the right gas supplier and installation of a private fueling facility, you’re unlikely to notice challenges related to fueling NGVs, ensuring optimal fleet performance. Contact Meritus Gas Partners for more information on CNG supply!

Propane and natural gas are locally produced fossil fuels. Both are colorless, odorless, clean-burning and cost-effective alternatives to electricity. They may be used interchangeably for a variety of residential, commercial and industrial applications ranging from heating homes, cooking, water heating and powering appliances, machinery and vehicles.

While they have many similarities, they also differ, including their chemical composition, energy efficiency and storage and distribution methods. Below are the main factors that distinguish propane and natural gas so you can make the right choice for your home, business or industrial use.

What Is Propane?

Propane is a clean, colorless and odorless fossil fuel that’s compressed and stored in liquid form. In this state, it’s also referred to as liquified petroleum gas (LPG) or LP gas.

It’s a byproduct of natural gas that’s extracted through refrigeration. It can also be processed from crude oil through distillation. While it’s virtually odorless, an odorant called ethyl mercaptan is typically added after extraction to give it a skunk or rotten egg smell that makes it easy to identify gas leaks. 

Propane accounts for up to 2% of the total energy consumption in the U.S. Its most common uses include household use like cooking and water and home heating. It’s also used to power industrial machinery, cut metal, produce plastic and run agricultural equipment.

What Is Natural Gas?

Natural gas is a combustible, colorless, odorless and nonrenewable gaseous fossil fuel. It’s a combination of hydrocarbons. Like propane, odorants are added to help with gas leak detection. It makes up at least 40% of total utility energy consumption in the U.S.

As a fossil fuel, natural gas is obtained from sedimentary rocks, like shale. These rocks form from the remains of plants and animals combined by heat and pressure over millions of years into an oxygen-deprived gaseous substance found near coal and oil deposits. There are two main categories of natural gas based on their origin and location:

Conventional natural gas: The deposits of conventional natural gas are found in the cracks between layers of overlying rock and close to oil reservoir deposits. It’s easy to mine using well drilling and other traditional pumping techniques.
Unconventional natural gas: It’s sometimes referred to as tight gas or shale gas. Unconventional natural gas deposits are located in tiny pores within sedimentary rocks such as shale, sandstone and coal seams. 

What Is Liquified Petroleum Gas (LPG)?

Liquified petroleum gas is a mixture of light hydrocarbons that exist as gases at room temperatures and liquefy when pressurized or cooled. LPG’s primary constituents include propane and butane. Other minor hydrocarbons, such as isobutane, propylene and butylene, can also be present. This versatility means LPG can be customized to suit different applications and environments. 

Liquefied petroleum gas and its variants are extracted when refining crude oil or separated during natural gas processing. LPG is typically stored and transported in a liquid state under moderate pressure, and it converts rapidly into a vapor upon release. LPG’s composition varies based on geographical location, climate and intended application. It is adaptable for numerous uses — from residential heating to vehicle fuel.

Is Liquified Petroleum Same as Propane? 

While propane is a type of LPG, the two are not identical. LPG includes a range of hydrocarbons, with propane as its most significant component. LPG’s additional constituents change its inherent properties and usage. In contrast, propane is a single compound with a specific chemical formula.

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The Differences Between Propane, LPG and Natural Gas

While propane and natural gas share numerous similarities and are used for many of the same applications, they also differ in composition, infrastructure and storage, cost, efficiency and environmental impact.

Chemical Composition

The chemical compositions of propane, natural gas and LPG are very distinct. Propane consists of three carbon atoms bonded by eight hydrogen atoms. Hence, its chemical formula is C3H8, while natural gas is made up of one carbon atom and four hydrogen atoms (CH4). 

LPG can be made up of propane, butane (C4H10), isobutane (i-C4H10), propylene (C3H6) and butylene (C4H8). LPG’s exact mix of gases depends on the source and the intended application. 

Propane’s chemical composition ensures it can exist in gaseous form at room temperature or when the atmospheric pressure doesn’t exceed (14.6 psi). At higher pressures of between 100 and 200 psi, propane condenses and exists in a liquid state. It has a high octane rating and calorific value, meaning it works great for spark-ignited internal combustion engines and produces more energy than natural gas. 

Generally, natural gas includes hydrocarbons — highly combustible organic compounds found in fossil fuels — and non-hydrocarbons — acid gases that are considered impurities in fossil fuels. 

When it is extracted, natural gas is usually wet because of the hydrocarbons, which include ethane, butane, propane and pentane and the nonhydrocarbons, such as CO2 and water vapor. These wet ingredients must be removed during processing to produce pure natural gas that consists of almost pure methane (60-90%). The hydrocarbons or natural gas liquids (NGLs) are not disposed of. Instead, they’re sold as valuable natural gas byproducts. 

Transportation Infrastructure and Storage

One of the most profound differences between propane, LPG and natural gas is their transportation and storage methods, which are determined by their natural state.

Propane

After processing, propane is pressurized and compressed into a liquid that’s stored in underground pipelines with controlled conditions at production and distribution sites. Propane is more portable than natural gas because the compressed liquid is distributed through a network of pipelines, barges, tractor-trailers, railcars and tanker trucks. 

Propane is stored in lightweight pressurized tanks made of steel and other corrosion-resistant materials that vary in size based on application. Tank sizes range between 100 to 1,000 gallons for residential tanks and 1,000 to 30,000 gallons for commercial and residential tanks, which can be under or above ground. These tanks have a pressure valve that releases the pressure and converts propane back into its gaseous state to facilitate residential, commercial and industrial uses. 

Propane’s portability makes it highly reliable because even in extreme weather, propane tanks can continue delivering heat to power homes and facilitate its other uses.

LPG

Similarly, LPG is normally stored as a liquid under moderate pressure, making it highly portable. It can be stored in pressurized tanks or cylinders of various sizes, from small household containers to large commercial storage tanks. The relatively direct condensation of LPG makes it easier to store and transport over long distances, particularly in rural or off-grid areas where pipeline infrastructure is unavailable.

Natural Gas

Natural gas is transported through an extensive and complex network of underground pipelines. These pipelines facilitate its collection for processing, storage and delivery to the end consumer. They can be categorized into three types:

Gathering pipelines: These are small-diameter low-pressure pipelines used to collect raw natural gas from wells and transport it to processing plants.
Interstate/intrastate pipelines: These transport the processed natural gas from plants within and across state borders to main distributors.
Distribution pipelines: These are underground utility pipes used to deliver natural gas to end-consumers, including residential, commercial and industrial customers.

Pipelines are made of either strong carbon steel materials or highly advanced plastics that don’t corrode easily. Hard plastic is preferred for pipelines that require easy replacement and flexibility.  

Compressed natural gas (CNG) is highly pressurized during transportation, and compressor stations powered by motors, engines or turbines are strategically placed along the pipelines to maintain that pressure. Pipelines also have metering stations to detect leaks while monitoring flow and pressure changes. Natural gas can also be stored in its uncompressed state under extremely cold temperatures for niche applications.

Cost and Efficiency

Because these three are fossil fuels, their prices fluctuate over time to meet supply and demand. Generally, propane is more expensive than natural gas on a per-unit basis because its cost is measured per gallon, while natural gas is valued per cubic foot. 

Hence, natural gas is cheaper per unit of energy than propane. However, propane has a higher energy content per cubic foot, with approximately 2,500 British Thermal Units (BTUs) per cubic foot. Natural gas only produces approximately 1,000 BTUs per cubic foot. This means you need to purchase twice the amount of natural gas to produce the same amount of heat as propane.

BTU is a measure of heat produced by fuels or energy sources. It represents the heat required to increase the temperature of 1 pound of water by 1 degree Fahrenheit. While propane may cost more per unit, it burns cleaner and boasts more heating efficiency.

Producers can fine-tune LPG blends to optimize energy density depending on the ratio of butane to propane. Blends with higher butane levels generally yield higher energy density and lower costs in moderate to warm climates than pure propane. However, their performance declines substantially in cold conditions.

Combustion Characteristics and Environmental Impact

Propane, LPG and natural gas are generally considered clean-burning fuels with a low environmental impact.

Propane

Propane has a significantly lower carbon content than other fossil fuels and petroleum products like gasoline and diesel. When combusted, propane produces only about 12.61 pounds of CO2, almost half of what gasoline emits. Substituting propane for other fuels, such as coal, also minimizes the emission of air pollutants like carbon monoxide and nitrogen oxide. 

In case of leaks, propane does not build up in soil or water, a common environmental hazard of many fossil fuels. Propane’s high heat efficiency also ensures less energy is used to power appliances. 

LPG

LPG shares propane’s clean-burning characteristics. However, depending on the exact mix of propane and butane, LPG normally has a slightly higher environmental impact than pure propane due to the higher carbon content of butane.

Natural Gas

Natural gas is a relatively clean burning fuel that does not leave ash or toxic mercury or sulfur oxide emissions. However, methane in natural gas is a highly potent greenhouse gas that releases CO2 and water vapor when combusted. Fortunately, these emissions remain to be significantly lower than those produced by burning coal and petroleum products. 

Natural gas may contribute to environmental pollution when it leaks into soil, water and the atmosphere. These leaks are often a result of drilling accidents, pipeline leaks and abandoned gas wells. Strict industry standards and federal regulations are in place to minimize leaks and ensure safe processing, storage, distribution and use of natural gas.

Applications of Propane Vs. Natural Gas

Propane and natural gas have numerous residential, commercial and industrial uses ranging from indoor heating and cooking to being used as alternative fuels for vehicles, agricultural equipment, welding and generating electric energy. The difference in performance in all the applications is negligible, and the choice typically comes down to your location because natural gas utility pipelines are not available everywhere. 

However, propane is a portable alternative that a certified professional can deliver and install on your residential, commercial or industrial property. Switching between the two fossil fuel options is generally an investment because they need different equipment and accessories to facilitate the pressure differences, but the changes can prove beneficial. Some of the appliance modifications that may be necessary include burners, conversion kits and regulators.

Compressed propane and natural gas versions can be used as alternative automobile fuels. LPG and propane autogas are among the top transportation fuels thanks to their high-octane rating that makes them ideal for powering spark-ignited combustion automobile engines. Compressed natural gas or liquified natural gas are relatively affordable alternatives to gasoline and diesel. However, these vehicles may be expensive because they need large, heavy and insulated tanks due to the dense nature and cold storage temperatures required.

Propane is also ideal for use in the welding industry thanks to its high combustion temperature of 3,596 F. This means it can be used to melt metals such as brass, bronze and aluminum, as well as metal jewelry like silver and gold. 

Frequently Asked Questions 

Here are some of our most frequently asked questions to help you decide which gas is right for your application:

Which Is Better, Propane or Natural gas?

Propane is generally better because it’s a clean-burning fuel that’s more energy-efficient than natural gas. It’s also a low-emission fuel that’s better for the environment because it produces fewer greenhouse gases and air pollutants.

Is Propane Safe?

Propane is relatively safe, nontoxic and reliable for indoor and outdoor use. Contrary to popular belief, propane tank explosions are not common, provided you follow all safe handling and storage instructions.

What Are the Disadvantages of Propane?

One of the main disadvantages of propane is the logistics for transporting it. While with natural gas, you only need to pay your utility bill to keep it on, scheduling for propane tank refills may be time-consuming unless you find a reliable supplier who’ll refill your tank when you need it. Even with a reliable supplier, supply chain and transportation issues can sometimes prevent it from getting to you on time. Propane prices also fluctuate based on market trends, weather conditions and supply and demand.

What Are the Disadvantages of Natural Gas?

Natural gas is nonrenewable, meaning it’s not a sustainable energy source because its supply will eventually deplete. It also contributes to the emission of greenhouse gases and can be toxic to humans when it’s inhaled in large quantities in case of leaks. 

Which Is More Flammable?

Propane gas is more flammable than natural gas, meaning it is more susceptible to causing injuries and accidents when you don’t implement strict handling, storage and usage precautions. However, propane is not flammable when pressurized in its liquid state.

Which One Is Better for Residential Use?

Propane is preferable for residential use because it’s convenient, versatile and cost-effective. Its low carbon footprint and greenhouse gas emissions also appeal to many homeowners. Either option may prove more affordable for your home depending on the current market prices, your location, frequency of use and delivery and how much gas you typically consume in a given period.

Contact Meritus Gas Partners for Your Propane, Natural Gas and LPG Needs

Knowing the differences between propane, LPG and natural gas is critical to choosing the right fuel for your application. Propane is ideal for applications requiring high heat and portability, especially in cold climates. LPG, being a mixture, offers versatility and can be tailored for different uses and climates. Natural gas is readily available, but it may not heat as efficiently as propane and LPG. 

Meritus Gas Partners provides a comprehensive and flexible gas supply for propane, LPG and natural gas that matches your residential and industrial applications. Our wide network of local distributors offers attentive customer service coupled with the resources and expertise of a large company. Contact us today to learn more.