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Propane-Air Systems Poised for Comeback
Pro pa ne-Ai r Systems Po i sed fo r Co meba c k

By: Jacob Peterson
ropane-air systems mix vaporized propane and
air to create synthetic natural gas that can be
used as a direct replacement of pipeline meth-
Pane for combustion applications. Propane-air
is relied upon by individual businesses and natural gas
distribution companies when natural gas stocks are
scarce or expensive. For decades, these air plants have
been viewed as a reliable and economic peak shaving
strategy for local gas distribution companies (LDCs).
According to recently finalized data from
the Energy Information Administration (EIA), in 2024
propane-air systems in the U.S. supplied 609 million
cubic feet of synthetic natural gas, or approximately Alabama's Propane-Air Systems:
6.9 million gallons of propane to energy costumers. In • In 2023, 22 million cubic feet of synthetic natu-
2024, propane-air facilities supported the natural gas ral gas was supplied in Alabama via propane air
distribution system in nine states: Connecticut, Hawaii, plants.
Indiana, Maryland, Massachusetts, Minnesota, Nebras- • In 2023, propane-air systems across Alabama
ka, Vermont, and Virginia. Maryland, Nebraska and Vir- supplied 250,000 gallons of propane that were
ginia accounted for 87 percent of supplied propane-air. vaporized and turned into pipeline quality synthet-
Propane-air plants are located in 30 states across the ic natural gas for businesses and local natural gas
country, from Hawaii to Vermont. At its peak in 1980, distribution companies.
propane-air plants supplied 20.4 billion cubic feet of • At its peak in 1981, propane-air systems across
synthetic natural gas, or approximately 233 million Alabama supplied 1.03 million gallons of propane
gallons of propane that year. that were vaporized and turned into pipeline qual-
While the use of propane-air ity synthetic natural gas for businesses and local

plants has waned during the natural gas distribution companies.
21st Century, the build-out of Source: EIA data)
data centers that are connected Key Applications & Benefits:

to the natural grid presents a • Standby Fuel: Ensures continuous operations for
new opportunity to reevaluate industrial facilities (manufacturing, food processing,
glass industry) during natural gas interruptions,
this technology. saving on potential downtime losses.

Data centers consume vast amounts of energy • Peak Shaving: Helps companies manage natural
– electrons and molecules. Data center operators, and gas loads by reducing usage from the main supplier
the LDCs that serve them, should look at the economic during high-demand, high-cost periods.
and resilience benefits of locating propane-air plants • Infrastructure Compatibility: Allows businesses to
onsite to help provide necessary energy to these mas- use their existing natural gas piping, burners, and
sive computing centers. And propane marketers should controls without needing to change to oil-based
be ready to engage these new customers. backup systems.

For more information on propane-air facilities, • Reliability: Serves as a reliable, onsite energy
please contact NPGA’s Senior Director of State Advoca- source that can be easily stored for long periods,
cy & Affairs, Jacob Peterson.■ unlike relying on pipeline infrastructure.

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