When it comes to heating your home, powering appliances, or providing reliable hot water, there are plenty of energy options available. Two of the most common choices across Australia are natural gas and LPG (liquefied petroleum gas).
Many homeowners wonder if LPG and natural gas offer the same capabilities. And, while they’re often used for similar purposes, each has its own unique characteristics, advantages, and considerations and understanding the differences can help you make informed decisions about your gas needs.
Whether you’re building a new home or considering a switch in energy source, it’s important to know how these two fuel types compare. In this post, we discuss what sets natural gas and LPG apart, their pros and cons, and how to decide which one might be the best fit for your home and lifestyle.
Fuel Composition: What’s Actually in the Gas?
Natural gas is primarily made up of methane, with smaller amounts of other hydrocarbons like ethane, propane, and butane. It’s a fossil fuel that forms naturally over millions of years from decaying organic matter subjected to heat and pressure underground. Before it reaches your home, natural gas is processed to remove impurities and odourless compounds, and an artificial scent is added so leaks can be easily detected.
LPG (Liquefied Petroleum Gas), on the other hand, mainly contains propane and butane, which are by-products of refining petroleum or processing natural gas. This difference in composition makes LPG burn hotter than natural gas, which means it can heat your water or cook your food more quickly.
Are LPG and Propane The Same?
In Australia, LPG is often used interchangeably with propane, and they are essentially the same thing here. While LPG can refer to a blend of propane, butane, or isobutane in other countries, Australian households almost exclusively use propane. It’s particularly well-suited to colder climates, as it performs better in low temperatures than other LPG types.
Natural Gas vs LPG
1. How It’s Delivered: Pipelines vs Bottled Supply
One of the most practical differences between natural gas and LPG is how they get to your home.
- Natural gas is delivered via an underground pipeline network. Australia has around 42,000 km of natural gas transmission pipelines. Once your home is connected to the mains supply, gas flows directly and continuously, no need to worry about running out or scheduling refills. It’s convenient, consistent, and generally low-maintenance once set up.
- LPG, however, comes in pressurised bottles or tanks. These range in size from smaller bottles to larger 45kg, 90kg, or even 210kg cylinders for whole-house use. You’ll need to monitor your LPG levels and arrange refills or exchanges as needed, either through delivery trucks or swap services. LPG systems also require dedicated outdoor space for cylinder storage and regular safety checks.
Is LPG better for off-grid homes?
LPG is ideal for rural or remote properties not connected to the gas grid. Stored in tanks or cylinders on your property, LPG offers all the convenience of a gas-powered home without relying on pipeline infrastructure. It’s also a great option for holiday homes, since the fuel doesn’t degrade over time.
2. Energy Efficiency and Usage
When it comes to gas, not all fuels are created equal, especially when you look at how much energy they produce. One of the biggest differences between LPG and natural gas is their energy content per unit, which directly affects how efficiently they power your appliances and how much you’ll end up paying over time.
LPG (Liquefied Petroleum Gas) contains significantly more energy per cubic metre than natural gas:
- LPG: 93.2 megajoules per cubic metre (MJ/m³)
- Natural Gas: 38.7 megajoules per cubic metre (MJ/m³)
That means LPG offers more than double the energy of natural gas. In practical terms, LPG appliances can produce the same amount of heat while using less fuel, making them more efficient for certain household needs. For example, LPG cooktops and heaters have smaller jets because they require less gas to deliver the same heating output.
To put it into another perspective:
- 1 cubic foot of LPG (propane) delivers around 2,516 BTUs
- 1 cubic foot of natural gas provides roughly 1,030 BTUs
But, what is a BTU? A BTU (British Thermal Unit) is a standard unit of measurement for heat. It represents the amount of energy needed to raise the temperature of one pound of water by one degree Fahrenheit. The higher the BTU rating, the more heat the fuel can produce.
This efficiency becomes especially noticeable in heating applications. LPG burns at a slightly higher flame temperature than natural gas (between 1,967°C vs 1,950°C) which may seem like a minor difference, but it allows LPG appliances to heat water faster and warm rooms more quickly. In colder climates or homes that rely heavily on gas for heating, this can make a noticeable impact on comfort and energy use.
So, while LPG may have a higher per-unit cost, its superior energy density often makes it the better option for:
- Homes with lower gas consumption
- Properties needing fast, responsive heating
- Off-grid homes where efficient fuel use matters most
- Households that mainly use gas for cooking or hot water
However, natural gas, with its lower per-unit cost and mains supply convenience, may still be the better fit for high-use homes connected to the pipeline.
3. Cost Breakdown and Budget Planning
When weighing up natural gas vs LPG, it’s easy to focus on the per-unit price. But to truly understand what each option means for your wallet, you’ll need to look at the full picture, including service charges, usage habits, installation costs, and long-term value.
At first glance, natural gas appears cheaper because it has a lower cost per megajoule (MJ) compared to LPG. However, natural gas connections come with daily supply charges, which apply regardless of how much gas you use. While pricing is dependent on gas price tariffs in your area and typically cost as much as AUD 1.22 per day or AUD 446 per year.
LPG, on the other hand, has a higher per-MJ cost, but much lower fixed charges. If you’re using bottled LPG, you’ll generally pay a rental fee per cylinder. Depending on your usage, this could mean significant savings, particularly for smaller households or low-volume gas users.
Let’s look at a real-world example:
- Cooking only (natural gas): Up to AUD 540.00/year (including supply charge)
- Cooking only (LPG): Often under AUD 200.00/year
For homeowners who don’t use much gas, LPG often works out as the more budget-friendly choice, even though the price per unit is higher.
4. Installation and Conversion Costs
It’s also important to consider upfront costs when setting up a new gas connection or switching from one fuel type to another.
Natural Gas Setup
Connecting to the mains gas network can be expensive. Costs vary depending on property location, how far you are from the existing pipeline, what work is required to complete the installation and what you are installing
- Estimated cost range: AUD 1,000 to AUD 10,000 for complex projects
This may include trenching, restoring surfaces like driveways, and traffic management if necessary.
LPG Setup
Setting up an LPG system is usually more straightforward and less expensive, startng as low as AUD 290 for a gas cooktop. Most homes need:
- A regulator
- Gas pipes installed to appliances
- Cylinders or tanks placed in an accessible outdoor area
This makes LPG a more attractive option for properties that aren’t already connected to the gas grid.
Switching Between Systems
If you’re moving from natural gas to LPG (or vice versa), you’ll also need to factor in conversion costs.
Each gas appliance must be adjusted to work with the new fuel type, which involves purchasing conversion kits, hiring a licensed gas fitter, connecting to local pipelines (if necessary), etc.
5. Environmental Impact and Sustainability
While both LPG (propane) and natural gas are fossil fuels, they differ in how they impact the planet, and exciting developments in renewable alternatives are shifting the conversation even further.
Surprisingly, propane (LPG) is considered one of the cleaner-burning fossil fuels available. It produces significantly fewer greenhouse gases and air pollutants compared to coal, oil, and even petrol. It’s non-toxic, won’t contaminate soil or groundwater in the event of a leak, and burns without leaving behind soot or heavy emissions.
That said, propane does emit more carbon dioxide per unit of energy than natural gas. So while it performs better than most fossil fuels, it’s not the lowest-emission option on the market. In environmental terms, LPG sits somewhere in the middle—a cleaner choice, but not entirely green.
Methane Emissions from Natural Gas
Natural gas, made up mostly of methane, burns even more cleanly than propane. This gives it an edge in terms of lower CO₂ emissions during combustion. However, methane’s environmental impact gets complicated quickly.
Methane is a potent greenhouse gas, with a global warming potential over 25 times greater than CO₂ over a 100-year period. Even small leaks throughout the supply chain, during extraction, processing, and distribution, can significantly offset its low-emission advantage.
In the U.S. alone, residential gas appliances are responsible for roughly 21 gigagrams (Gg) of methane emissions each year! These often come from incomplete combustion or appliance start-up spikes, particularly in older stoves, heaters, and hot water systems.
So, while natural gas may look cleaner on paper, real-world methane leaks can make its environmental performance more harmful than expected.
6. Safety, Storage, and Maintenance
Whether you use natural gas or LPG at home, safety should always come first. Understanding how each fuel is stored, monitored, and maintained can help you avoid issues, keep your household safe, and ensure your gas systems perform at their best.
How Each Fuel Is Stored and Monitored
Natural gas is delivered straight to your home via underground pipelines, so you don’t need to store it on-site. These systems include built-in pressure regulators and gas meters that monitor your usage and detect sudden pressure drops, an early warning sign of leaks or system malfunctions. It’s a low-maintenance setup that quietly works in the background.
LPG, by contrast, needs to be stored in pressurised cylinders or tanks on your property. These range in size from small BBQ bottles to large tanks that fuel an entire household. For safety:
- Cylinders must be kept upright at all times
- They should sit on a solid, fireproof base such as concrete or pavers
- Cylinders must be secured with chains or straps to prevent tipping or impact
This setup requires more attention than natural gas, but it also offers flexibility, especially in off-grid or remote locations.
Safety Features and What to Do in an Emergency
Both LPG and natural gas are naturally odourless, but manufacturers add a distinctive smell (like rotten eggs) so leaks are easier to detect. If you ever notice that smell indoors, treat it seriously.
What to do if you smell gas:
- Turn off the gas supply immediately, either at the meter (for natural gas) or cylinder valve (for LPG)
- Avoid using anything that could ignite a spark, such as matches, lighters, or even flipping a light switch
- Keep lights on if they’re already on, don’t touch them
- Open windows and doors to allow gas to disperse
- Evacuate the area if the smell is strong or doesn’t go away
- Call a licensed gas fitter or emergency services to investigate the issue
Note: LPG is heavier than air, so it tends to sink and collect near the floor. In contrast, natural gas is lighter and will rise and dissipate more easily. That’s why with LPG, it’s especially important to ventilate low-lying areas thoroughly.
Maintenance Tips for a Safe and Reliable Gas System
Regardless of which fuel you use, regular maintenance by a licensed gas fitter is essential. Gas systems, when well-maintained, are safe and efficient, but neglect can lead to costly or dangerous issues.
Here are some key maintenance guidelines:
- Heaters and gas appliances should be serviced every two years, or yearly if they’re over a decade old
- Natural gas systems generally require less hands-on upkeep but still benefit from periodic safety checks
- LPG systems need more regular attention, especially around hoses, regulators, and connections
You can do a basic soapy water test at home to check for leaks on LPG systems:
- Spray the soapy water on cylinder connections and valves
- If you see bubbles, you may have a leak and should turn off the gas and call a professional
Also, don’t forget to check cylinder expiry dates. In Australia, any LPG cylinder older than ten years must be professionally tested and recertified before continued use.
At Hardie & Co Plumbing, we offer safe, compliant gas fitting services across Sydney. From installations to maintenance and emergency repairs, our experienced team ensures your system is in top condition, giving you confidence and peace of mind.
Choosing Based on Household Needs and Location
Both fuels can power the same types of appliances, cooktops, hot water systems, heaters, and more, and both can be more cost-effective than electricity, depending on usage. The best choice often comes down to where you live and what your household needs.
1. Location: Where You Live Matters Most
- Metro or suburban areas: If your home is already connected to a natural gas pipeline, sticking with mains gas is usually the most cost-effective and convenient solution. It offers a steady supply with minimal effort.
- Rural or off-grid areas: LPG is ideal for homes without access to natural gas infrastructure. It can be delivered almost anywhere and stored in cylinders or tanks onsite, giving you the freedom to enjoy gas-powered appliances even in remote locations.
2. Safety Considerations
Both fuels are safe when installed and maintained correctly, but their physical properties behave differently in a leak.
- Natural gas is lighter than air. In the event of a leak, it rises and disperses through ventilation, making it less likely to collect dangerously in enclosed spaces.
- LPG is heavier than air and tends to sink and pool in low areas such as basements, drains, or under floors. That means extra care is needed in storage and ventilation.
Both fuels have added odorants to help you detect leaks early. While these gases aren’t poisonous, inhaling large amounts in a confined space can cause dizziness or breathing issues due to reduced oxygen levels, making proper airflow and ventilation essential.
3. Appliance Compatibility & Conversion
Appliances are typically built for one type of gas, LPG or natural gas, and using the wrong one can lead to safety hazards and damage.
- Each fuel requires different pressure levels, so you can’t switch fuels without converting the appliance.
- Some appliances can be converted with a certified conversion kit, but not all are compatible. Always check the manufacturer’s specifications or data plate before making a purchase.
Need help with conversions or installation? At Hardie & Co Plumbing, we provide expert gas fitting services across Sydney. Whether you’re switching fuel types or installing new appliances, our licensed team ensures everything runs safely, efficiently, and to code.
4. Lifestyle and Practical Considerations
The best fuel source also depends on how you live and how involved you want to be in managing your supply.
LPG offers greater flexibility and portability, especially for:
- Holiday homes
- Off-grid living
- Properties with low or seasonal gas usage
Its bottled format allows you to store and manage your energy independently, but it does require monitoring gas levels and organising regular refills.
Natural gas is better suited for households that:
- Use gas regularly and consistently
- Prefer a “set-and-forget” energy supply
- Don’t want to worry about deliveries or running out
In other words, if you prefer continuous fuel access without thinking about tank levels or refills, natural gas offers that convenience, provided you’re connected to the network.
A Quick Comparison Table
| Characteristic | Natural Gas | LPG |
|---|---|---|
| Main Composition | Mostly methane mixed with small amounts of ethane, propane, and butane | Mostly propane and butane |
| Energy Output | 1,030 BTUs per cubic foot | 2,516 BTUs per cubic foot |
| Delivery Method | Continuous supply through pipeline networks | Tanks/cylinders that need manual refills |
| Storage | Pipeline-based system needs no on-site storage | Storage tanks or cylinders must be kept on-site |
| Burning Temperature | 1950°C | 1967°C |
| Behaviour When Leaked | Rises and disperses because it’s lighter than air | Sinks and collects in low areas as it’s heavier than air |
| Availability | Only in areas with pipeline networks | Easy to get almost anywhere, perfect for off-grid areas |
| Environmental Impact | Less CO₂ when burned, but methane leaks pose risks | Burns cleaner than coal or oil, safe for soil and water |
| Cost Structure | Daily charges cost more, units cost less | Service charges cost less, units cost more |
| Best Suited For | Cities with gas networks, high-volume users | Off-grid homes, low-volume users, remote areas |
| Maintenance Needs | System checks needed regularly, less upkeep overall | Tanks, hoses, and cylinders need regular testing |
Key Takeaways
Choosing between natural gas and LPG ultimately comes down to your unique needs and circumstances; there’s no one-size-fits-all answer. Each fuel offers distinct advantages that shine in different situations.
Your location plays a primary role in your decision; if you live in a city or suburb with established gas pipelines, natural gas is often the easiest and most economical choice. For rural or off-grid homes, LPG provides a flexible and reliable alternative.
How much gas you use also matters; large families with high gas consumption typically save money with natural gas despite higher fixed fees, while LPG can be more cost-effective for households that use gas primarily for cooking or occasional heating.
At Hardie & Co Plumbing, we specialise in gas fitting services across Sydney, catering to residential and commercial properties alike. From installing gas hot water systems and kitchen cooktops to ongoing maintenance and repairs, our experienced team ensures your gas appliances are connected safely, work efficiently, and meet all compliance standards. Get in touch today to learn more!
