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Propane Distribution

Propane (also known as liquefied petroleum gas or LPG) is shipped from its point of production to bulk distribution terminals via pipeline, railroad, barge, truck, or tanker ship. Propane dealers fill trucks at the terminals and distribute propane to end users, including retail fueling stations.

U.S. Energy Information Administration schematic of propane distribution showing propane originating from three sources: 1) gas well and gas plant, 2) oil well and refinery, 3) imports. Propane from each of these three sources then moves to underground storage, pipeline station, pipeline terminal, transport (10,000 gallon tanker truck shown), retail plant (30,000 gallon stationary tank shown), transport via bulk truck (3,000 gallons) or cylinder truck, and finally to the retail customer (shown as a residential home).

Schematic of a typical propane distribution route (Source: EIA)