Propane Production Cost Analysis Report, Raw Materials Requirements, Costs and Key Process Information, Provided by Procurement Resource

Updated Nov 24 


Christeen Johnson
By Christeen Johnson

5 Articles


The latest report titled Propane Production Cost Report by Procurement Resource, a global procurement research and consulting firm, provides an in-depth cost analysis of the production process of the Propane.


Report Features Details
Product Name Propane
Process Included Propane Production From Petroleum Refining
Propane Production From Natural Gas
Segments Covered
  • Manufacturing Process: Process Flow, Material Flow, Material Balance
  • Raw Material and Product/s Specifications: Raw Material Consumption, Product and Co-Product Generation, Capital Investment
  • Land and Site Cost: Offsites/Civil Works, Equipment Cost, Auxiliary Equipment Cost, Contingency, Engineering and Consulting Charges, Working Capital
  • Variable Cost: Raw Material, Utilities
  • Fixed Cost: Labor Requirement & Wages, Overhead Expenses, Maintenance Charges
  • Financing Costs: Interest on Working Capital, Interest on Loans
  • Depreciation Charges
  • General Sales and Admin Costs
  • Production Cost Summary
Currency US$ (Data can also be provided in local currency)
Pricing and purchase options Basic: US$ 1499
Premium: US$ 2999
Enterprise: US$ 4799
Customization Scope The report can be customized as per the requirements of the customer
Post-Sale Analyst Support 360-degree analyst support after report delivery


Procurement Resource study is based on the latest prices and other economic data available. It also offers additional analysis of the report with detailed breakdown of all cost components (capital investment details, production cost details, economics for another plant location, dynamic cost model). In addition, the report incorporates the manufacturing process with detailed process and material flow, capital investment, operating costs along with financial expenses and depreciation charges.


Procurement Resource’s detailed report describes the stepwise consumption of material and utilities along with a detailed process flow diagram. Furthermore, the study assesses the latest developments within the industry that might influence Propane production cost, looking into capacity expansions, plant turnarounds, mergers, acquisitions, and investments.

Procurement Resource Assessment of Propane Production Process:


1. Propane Production From Petroleum Refining: This report covers a detailed cost analysis of Propane production using Petroleum Refining. During the process, a gas trap is used to separate oil and wet gas from crude oil. The compounds are separated by the fractional distillation method at different temperatures. Next, the petroleum gas is evaporated, which evaporates at a temperature below 110°C and is cooled down. The petroleum gas's liquefied state undergoes the process of cracking and reforming in order to separate the gases like butane, propane, and isobutane.


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2. Propane Production From Natural Gas: This report presents the economics of Propane production from Natural Gas. Using this method, crude oil derived from oil wells is sent to a gas trap where wet gas and oil are separated. The wet gas gets piped to a gasoline absorption plant where it is pumped via an absorption oil which is separated from the mixture, called wild gasoline. Wild gasoline is divided into liquid gasoline and LPG. The LPG is further separated into butane, propane, and isobutane.


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Product Definition:

Propane or liquefied petroleum gas is colourless, nontoxic, and virtually odourless, which gets an odour added, so it is identifiable. It is a clean, safe, reliable, and powerful fuel that is used as energy worldwide. It's a three-carbon alkane gas (C3H8) stored under pressure inside a tank.

Market Drivers:


The Propane market is rapidly expanding as the demand for it from various industries is rising. In addition, the high demand for clean-burning fuels as a result of growing environmental concerns is boosting the market's demand. It is also employed in many industrial applications, including soldering, shrink-wrapping, heat treatment, cutting and brazing, and preheating, which will bolster the market demand.


Furthermore, the increasing adoption of propane in the energy sector for electricity generation will propel the market further. Other factors, including rapid industrialization, product innovations, the growing popularity of propane-based agricultural engines, ongoing research, and development (R&D) activities, and technological advancements, will likely to augment the industry's expansion.

Key Questions Answered in the Propane Production Cost Report:


• What are the key drivers propelling the Propane market?
• What are the various processes used for Propane production?
• What are the raw materials required to produce Propane?
• What are the different operations units involved in the production of Propane?
• What are the manpower and utility requirements in the production process of Propane?
• What are the various costs engaged in the production of Propane?
• What are the construction costs involved in setting up a Propane production facility?
• What are the working capital requirements?
• What is the process of raw material procurement for Propane production?
• What is the time frame for Propane plant start-up?
• What is the pricing mechanism of Propane?

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About Us:

Procurement Resource ensures that our clients remain at the vanguard of their industries by providing actionable procurement intelligence with the help of our expert analysts, researchers, and domain experts. Our team of highly seasoned analysts undertakes extensive research to provide our customers with the latest and up-to-date market reports, cost models, price analysis, benchmarking, and category insights, which aid in simplifying the procurement process for our clientele.


Procurement Resource work with a diverse range of procurement teams across industries to get real-time data and insights that can be effectively implemented by our customers. As a team of experts, we also track the prices and production costs of an extensive range of goods and commodities, thus, providing you with updated and reliable data.


We, at Procurement Resource, with the help of the latest and cutting-edge techniques in the industry, help our clients understand the supply chain, procurement, and industry climate so that they can form strategies that ensure their optimum growth.

Contact Us:

Company Name: Procurement Resource
Contact Person: Christeen Johnson
Email: sales@procurementresource.com
Toll Free Number: USA & Canada - Phone no: +1 307 363 1045 | UK - Phone no: +44 7537 132103 | Asia-Pacific (APAC) - Phone no: +91 1203185500
Address: 30 North Gould Street, Sheridan, WY 82801, USA

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