1. Introduction to LPG for UK businesses
Liquefied petroleum gas (LPG) is a clean-burning fuel derived from refining natural gas or processing crude oil. Composed of propane and butane in various mixtures, it is stored and transported as a liquid under pressure, vaporizing at ambient pressure and temperature. LPG differs from natural gas, which is delivered to the end user by pipeline, and from diesel, its closest fossil-fuel alternative. Although LPG occurs naturally in oilfields, commercial supplies are manufactured. The UK business sector used an estimated 5733 GWh of LPG in the form of 483 million litres in 2020, with relatively small volumes accounting for nearly three-quarters of business consumption.
Many UK businesses use LPG as a primary fuel, because natural gas isn’t available, or because of excess running costs associated with diesel as either a transport fuel or mobile heating equipment. Common applications for LPG include outdoor cooking and heating equipment in the hospitality sector, construction site space heating where overhead gas blowers are used and for barbecue events, general site preparation, e.g. burning stubble on agricultural land, and also as a backup power source in remote areas.
1.1. What is LPG and how it differs from natural gas and diesel
Liquefied petroleum gas (LPG) is a by-product of crude oil and natural gas production, and is also produced from natural gas. Derived from sources deep below the earth’s surface, LPG is a mixture of hydrocarbons—primarily propane and butane with small quantities of iso-butane and propylene. LPG is transported to where it is needed in a liquid form; it vaporises rapidly and, when ignited, burns with a clean-radiating flame. LPG can be regarded as a portable energy source, enabling industry to operate where it is not possible or practical to connect to a gas network or another source of power.
The fuel gas in LPG differs from that burnt in natural gas because both propane and butane have different heat values. LPG can also be seen as a replacement for diesel, especially for off-road diesel equipment in agriculture and construction. The case for switching from diesel to LPG is growing, particularly for industrial, commercial and temperature-dependent applications, due to the comparative total cost of ownership, a substantially lower carbon footprint and improvement in health risks associated with exposure to exhaust emissions from diesel engines. LPG can be used in existing diesel engines with relatively simple conversions that make use of seed stock of dual-fuel engine systems.
1.2. Why businesses choose LPG: key advantages and use cases
Liquid Petroleum Gas (LPG) is recognised as a low-carbon energy source with many practical advantages. Its properties make it more versatile than natural gas and it can be employed in a wide range of applications, lending it appeal beyond that of being a natural gas alternative. From catering to construction and leisure to standby power for infrastructure networks, LPG provides businesses with flexible energy solutions. Cost-cutting and lower emissions have driven its application in a range of natural gas replacement scenarios, particularly those encountering difficulties because of the high cost of connecting to the gas grid.
Establishing whether LPG is the right solution requires an overview of the specific advantages and the practical uses. LPG is a low-carbon, versatile energy source with particular appeal in locations far from the gas grid. Certain industrial applications also lend themselves to natural gas substitution with LPG—especially those in the hospitality, agricultural, and outdoor events sectors. LPG’s relatively low cost, ability to burn cleanly and produce high calorific values, and the fact that sources and supply chains have become increasingly diversified are also driving this interest. The increased range of districts and businesses now faced with greater charges under the UK’s carbon pricing regime also supports a search for viable alternatives.
2. Regulatory and safety landscape
Regulation and safety landscape
In Great Britain (England, Scotland, and Wales), LPG operations must comply with relevant regulations, such as the Health and Safety at Work Act 1974 and the Dangerous Substances and Explosive Atmospheres Regulations 2002 (DSEAR). Employers have a duty to reduce risk to staff and others as far as is reasonably practical. Local authorities usually enforce regulations. The Health and Safety Executive (HSE) provides comprehensive and accessible information on health and safety regulations that govern the supply, storage, delivery, use, and burning of LPG and must be consulted early on.
In addition, fire and rescue authorities ensure compliance with the Regulatory Reform (Fire Safety) Order 2005, which requires all non-domestic premises to have adequate fire safety measures in place. This is normally achieved by a fire risk assessment of the premises and the activities that take place there. These risk assessments must evaluate the likelihood of a fire breaking out and the risk of a fire spreading to other properties. Separate processes apply in Northern Ireland, where the Health and Safety Executive for Northern Ireland (HSE NI) enforces relevant regulations. The Department for Agriculture, Environment and Rural Affairs is the enforcing authority for agriculture and forestry.
Local authorities should also be consulted where LPG is expected to be used for catering on beaches or at public events. The various bodies with responsibilities, including other local authority departments, must work together to ensure any necessary permissions are obtained and aligned with the safety plan. Where construction work is taking place, planning, building regulations, and licensing arrangements apply to as new buildings and/or roadways, fire safety arrangements, and any necessary traffic management plans.
The LPG assessment checklist helps businesses consider the need for permissions, licenses, and inspections as early as possible. The checklist also highlights how these activities relate to a safe LPG operational plan, which is usually developed at the early planning stage.
2.1. GB standards and compliance basics
Practical compliance with safety legislation in Great Britain, and associated operational standards, is a multi-phase process that establishes staff safety as a precondition for responsible adherence to Regulation 7(1) of the Gas Safety (Management) Regulations 1996. Considering LPG supply, Regulation 4 of the Gas Safety (Installation and Use) Regulations 1998 defines both the obligations of a person who has control over the premises and the principles of “operational procedures” necessary for LPG installation use in refrigerators, water-heaters, and space-heating appliances. Aside from these dedicated rules for LPG, other key phases of the compliance framework are Regulation 3 of the Management of Health and Safety at Work Regulations 1999—”a risk assessment prepared for the task must consider safety in relation to the source of ignition,”—and the common rules applied to natural gas in Regulation 15(1) of the Gas Safety (Installation and Use) Regulations 1998.
Essentially all energy supply, transportation, construction, or municipal planning activities require a specialized license or permit, and operational inspection or licensing by the Factory Inspectorate within the Health and Safety Executive or the Scottish Office is a prerequisite for a Gas Transporter. All practices and potential hazards related to LPG, as with natural gas, must be addressed in an operation’s risk assessment; the legislative principles of risk assessment and gas operation are thus distinct but not unrelated. Operational, practical, and personal safety principles must coincide for true safety; completion of various dedicated operational activities or procedures does not alone guarantee safety where monitoring and staff briefing and responsibility are deficient. A supportive “agreement of the responsible person” bolsters this safety approach and must therefore justify the monitor role assigned in the operational procedures.
2.2. Safety responsibilities and best practices for staff
Standards in Great Britain concerning gases and regulations in place for businesses using gas are determined by the Health and Safety Executive (HSE) and the relevant technical standards. Their objective is to ensure the safety of the end-user and members of the public.
All staff should adopt procedures to ensure that the risks from LPG are properly controlled. All hazards must be taken seriously and the written details must reflect ongoing processes. Staff with responsibilities for the delivery activities will need to prepare written procedures to cover, as appropriate:
– communicate to others any prior experience with the third-party supplier – agree the method of performing the first delivery – confirm to the appropriate manager any changes in the supplier’s operation from previous deliveries – check the weather forecast at the planning stage – agree action to take in adverse weather or other conditions that could affect the delivery – check that the delivery is not to be made into a cave, tunnel or similar structure
During the delivery, all staff should maintain a good lookout and communicate effectively. The driver of the delivery vehicle should complete a post-delivery vehicle check, with the action notes being reported back to the appropriate manager. Driver activities will also encompass routine vehicle driving and parking activities.
2.3. Licensing, permits, and inspections
LPG
LPG is subject to numerous regulations and standards in Great Britain, yet it is not particularly heavily regulated compared to other areas of risk management. Key standards are based on the British Standard BS 5482 Code of Practice for the Use of Liquefied Petroleum Gases in Domestic, Residential and Commercial Appliances and Equipment and the Liquefied Petroleum Gas Association’s Model Code and Guidance Notes, both of which offer practical guidance to be followed fully or, if deviated from, risk an unsuccessful and costly investigation. The duties and responsibilities for the safe use of LPG are shared, with the user taking the principal role and the supplier having similar duties as for all other gas supplies to ascertain whether the equipment is suitable for the application and the location. The owner of the property in which the LPG is used is responsible for ensuring the condition of the supply and for exercising control over that supply.
Numerous licenses and inspections apply. Fire and rescue authorities need to be notified whenever storage reaches 250 litres, while tanks weighing in excess of 3,000 kg require a special exemption. The HGV driver must hold an appropriate Dangerous Goods Driver’s Certificate. Special consents from the local fire and rescue authority, and often from the health and safety authority, are required for ground-mounted VRV systems. Environmental permits, Risk and Safety Statements (RASEs), and Hazardous Substances Consent are compulsory for every supply provider. Local authorities should approve every visit and are responsible for ensuring that no undue risk or damage is caused by the use of LPG at an outdoor event. The Fire and Rescue Service requires notification of any event employing more than 500 litres. These obligations support planning, safety, and financial management activities discussed in section 1.
3. Market and supply chain
The UK LPG market has a small number of suppliers, with Calor Gas and Flogas dominating the market. Set against this concentration, the gas is delivered to commercial customers in several different ways. The pricing for LPG fuel in the UK is less dynamic than that of natural gas and often dependent on a wholesale pricing agreement with Calor or another large supplier. In the UK, deliveries are made in either cylinder form for smaller use or by bulk storage delivered by truck. Customers with ongoing demand greater than the delivery capacity of a single truck will have a bulk storage vessel suitably sized for the required burn rate, along with a delivery cycle that matches their requirement. Deliveries may be cryogenic in liquid form, with vapour extracted and heated to gas, or in vapour form, with liquid LPG evaporating in the storage tank. For back-up power, small storage cylinders are the norm, with higher-capacity cylinder banks in the larger remote-site installations.
Delivery frequency, weather conditions, customer behaviour and storage capacity all play a part in determining the optimum delivery cycle. Transport capacity per day is also limited by the maximum bulk delivery vehicle size and the number of days of operation feasible in the year, heavily influenced by winter road conditions. Fuelling of remote sites is also constrained by the need to balance the high cost of delivery, particularly for sites too small to justify a bulk delivery, with transport availability and cost. In addition, the delivery pattern for temporary applications is dictated by the need for very short-term but high-volume drops of fuel rather than the typical just-in-time scheduling pattern employed by permanent remote sites. All these complexities mean that the burn pattern in a single application often has a significant influence on the average price charged for the fuel.
3.1. LPG suppliers and gas networks in the UK
Business and government bodies actively consider the use of liquefied petroleum gas (LPG) as an alternative to petroleum products and natural gas. LPG is a highly versatile energy source, facilitating a wide range of applications across varied sectors, from catering and agriculture to manufacturing and hospitality. Interest in the use of LPG includes both the economic considerations of total cost of ownership and the growing pressures of carbon reduction in response to legislation and public sentiment. Such demands are pushing business sectors to look at alternative fuels for space heating, process heat and standby power. Gas-derived products are regulated in Great Britain and structured networks oversee supply. LPG supply and distribution are subject to strict monitoring and testing to ensure that the risks to the user or public are managed and controlled.
Major suppliers include Calor Gas, Flogas, and Supagas. The gas suppliers’ networks reflect the position of remote-natural-gas users. LPG pricing is governed by the oil market price (shown in US$ but traded in £s). Budgeting requires consideration not only of fuel costs but also of rental expenses for bulk storage, delivery costs and consumption. Businesses and regulators must address storage, delivery and logistics aspects of using LPG, as these considerations influence procurement strategy and implementation.
3.2. Pricing structures, tariffs, and budgeting
Business owners consider LPG for a variety of reasons. Candidate applications and settings include hospitality (catering kitchens, temporary outdoor catering, events and festivals) and associated supply chains; primary heating and cooking in the agriculture and construction sectors; support operations in manufacturing; additional heating for power generation; and use at remote sites. Businesses in these areas might have already made some commercial decisions or, at least, instinctively feel that LPG could work for them. The economics, however, should not be overlooked.
The basic unit of volume measurement for LPG is the tonne. Forecourt and delivered prices are quoted in pence per litre (ppl), with a simpler “per kg” conversation actually being less complex and more accurate — assuming allowances for density are understood. LPG is measured in kilogrammes because that’s the actual volume of the fuel. Current highway diesel pricing forms the average level against which LPG is assessed. Road diesel is a primary reference price because, for many potential LPG users, diesel is already in use; LPG simply provides a “direct” alternative heat source. The total cost of ownership of LPG should be compared to the full cost of diesel use, including vehicle and equipment capital costs as well as loss of use revenue.
3.3. Storage, delivery, and logistics considerations
Total delivered price agreements combine operating overhead, market conditions, transportation, and delivery costs, then add margin. For smaller customers supplying own tanks, own transport, and loss risk, price is unit cost plus a simple transport charge. Price can be reviewed quarterly.
Storage volume depends on delivery logistics, consumption profile, supply tanker size, and demand variation. A larger stationary storage tank can reduce delivery requirement, or additional tanks at the delivery point ease scheduling. If unpredictable usage spikes create supply issues, consider a second tank for high-demand periods. Positioned for refill on alternate weeks, a 4,500- to 9,000-litre tank can usually meet unexpected volume.
Logistics planning identifies storage delivery volume and timing. Deliveries can occur day or night. Industrial users provide information on complete seasonal behaviour, supporting more precise scheduling. Making a hydraulic follow-on available for events helps avoid hasty installation before they begin. Roadtoe Mat H issued for one-off, short-term, sticky-soil jobs delivers a quick low-cost solution and leaves the site relatively mess-free.
Guarantee service-level agreements and completions in the event of a customer’s own shortfall, plant breakdown, or force majeure. Any requirement list engages suppliers and support network at an early stage, helping to avoid problems later.The total cost of ownership should feed into any decision-making process.
4. Industrial and commercial use cases
LPG supports a range of major industrial and commercial applications across the UK economy. Hospitality and catering sector companies use LPG cookers and patio heaters in restaurants and hotels, often providing heating and cooking facilities at outdoor events such as expos and festivals. Construction and agricultural equipment sometimes use dedicated LPG models, while LPG-fuelled heaters warm buildings or drying operations. Manufacturing processes such as product paint shops, plastic processing, and ceramic drying favour LPG for its high-temperature characteristics, and LPG can also provide standby power for remote sites. Applications like these, where LPG is burned for heat, are suitable for new installations, while existing equipment can often be converted from or dual-fuelled with diesel.
Cost economics and UK environmental policies support these use cases. Users depend on volume, not metered supply, leading to fixed pricing around 80% of sales relative to diesel in recent years. Permits under the Environmental Permitting (England and Wales) Regulations 2016 for LPG combustion plants typically include more favourable thermal efficiency conditions than Diesel Particulate Emissions Regulations for equivalent diesel plants. Urban Air Quality Management areas drive concurrent interest in Alternative Fuel Trial Permits that enable modified equipment not currently available with either gas or diesel.
4.1. LPG in hospitality, catering, and outdoor events
LPG is ideal for catering: versatile, compact, and portable. It supports cooking, heating, and hot water, as well as supplying energy-efficient appliances for hotels and restaurants. Attractive for events, many outdoor wedding venues, festival caterers, and pop-up restaurants are adopting it.
Consider outdoor space configuration when deploying LPG. Most units use propane cylinders, making siting flexible. Verify that electrical systems meet requirements and that pipework is bundled correctly. Compliance with the Supply of Machinery (Safety) Regulations is essential for any appliance fed from a supply, including bottled cylinders and multiple units in series. LPG is also popular among farmers and industry for equipment such as hot-boxes and thermal lances.
4.2. Agriculture, construction, and manufacturing applications
Liquid petroleum gas (LPG) powers equipment across the hospitality, catering, and outdoor events sectors. These industries often rely on outdoor catering equipment to prepare food for outdoor activities and special events, as much as for fairs, sporting events, and expos. LPG fuels generators or light towers at agricultural shows, outdoor festivals, and sporting events. Storage tanks act as service points for catering businesses and market stalls without permanent facilities.
Agricultural and construction equipment heat hot-water systems, dry materials, and control insects and pests. LPG offers an efficient fuel source for heating drying tunnels, portable showers, and site accommodation. Road works, bridges, tunnels, and road or pipe maintenance also use LPG-powered portable heaters. Gas heating systems are even used in prefabricated building processes. Construction-and-maintenance site drying-off activities similarly use LPG for heating buildings and structures.
LPG-fuelled gas torches also serve in road construction and repair, welding, thawing, and removal of road-tar products. In the manufacturing sector, air-conditioning systems have used gas-driven compressors and absorption machines, and sootless burners operating on LPG are now widely applied. By enabling high combustion efficiency, the soot-free operation encourages LPG use to improve indoor air quality and worker productivity. Emission cuts to meet tighter environmental standards have also made LPG attractive in this sector.
4.3. Backup power and remote-site solutions
While businesses often select LPG as an alternative fuel as an environmentally- permissible substitute for traditional fuels, others try to avoid the impracticalities of connecting to a utility gas supply. UK companies that are too small or too remote to justify a mains gas connection typically use bottled gas for cooking and heating, but, for much of the rest of the economy, liquefied petroleum gas compressed into cylinders or stored in tanks offers a reasonable approximation of a utility supply. Balancing the quality of service, pricing, and environmental impact, temporary backup power for sites without three-phase electricity is often satisfied by a tri- or quad-cycle Internal Combustion Engine (ICE) generator set powered by diesel, but sensitive applications can require a backup power scheme to be as clean and silent as possible. In such cases, diesel is a fuel of last resort, and site-assembled generator sets using LPG or natural gas in reciprocating Engines are often rented.
A wider range of temporary heating and power solutions meets the needs of outdoor events, construction, demolition, and civil engineering projects. The diversity of supply responses to the diversity of LPG plant outputs and the realities of storage logistics and fuel delivery specially afforded by the use of cylinder storage; cost pressures to develop the lowest-cost solutions in a competitively-priced market; and the desire to provide as near a utility supply as practicable have custom-built novel rental and delivery solutions for practical situations. Examples include the use of a heat-transfer unit in place of a temporary hot-water boiler for use in a night-time disposable-heat application, a cylinder-stored mains-pressure compressed air system meeting the demands of a finishing contractor, and the adaptation of a 500-kg-to-a-bar dual-fuel ICE engined site-removal hoe to run on compressed natural gas or diesel.
5. Technical and operational considerations
Because LPG can be burned in any appliance designed for natural gas, existing systems can usually switch fuels without major modification. However, burners built for liquid fuels should not use LPG without proper advice, because they must be adjusted for this gas. If cost-effective, plant and equipment should always be modified to improve total operating costs.
Procedures should be introduced to ensure that LPG is used safely and efficiently throughout the organization and to minimize the risk of emissions contributing to large external energy bills for neighboring companies. Such procedures should cover:
1. Compatibility with Existing Plant and Equipment: Companies should ensure that LPG can be used in all existing plant and equipment, or obtain the necessary information to support a change.
2. Energy Efficiency: LPG systems often operate at a higher overall thermal efficiency than when using diesel because heating plant typically can achieve lower flue gas exit temperatures. Savings from this source should be fully exploited.
3. Maintenance Procedures: Drainage and other serving procedures recommended by service providers should be followed. Regular delivery schedules should be maintained to ensure that the LPG remains fresh.
4. Monitoring: LPG use should be regularly monitored. If delivery schedules are inadequate and the gas is stored for prolonged periods, gas quality should be checked before it is transferred into critical process heating equipment. Such testing can be carried out using a portable equipment. A major advance in LPG boiler technology is in the area of auto-ignition burners and evaporators fitted with state-of-the-art control equipment. Use of such equipment should be considered to minimize diesel consumption on standby plant.
5. Leak Detection: Dry and properly mounted hoses should be inspected weekly and connections at least once a month. Leaks, when detected, should be reported and, if possible, isolated before the specialist service provider is called to undertake repairs.
5.1. Equipment compatibility and conversion basics
Long-term performance evaluation of LPG-fed gas burners has not shown any noticeable deterioration in different parts of the burners. In contrast, it was observed that burners fired with natural gas for long periods were found to have severely eroded and corroded parts. At higher altitudes, conversion of LPG burners back to natural gas requires optimal adjustment to maintain performance, as LPG performs differently than natural gas in combustion performance. Before converting burners, the feedways and feed devices must be examined, cleaned, and repaired as necessary.
Logistics and delivery plans should specify where the gas will be used, the quantity needed, any seasonal variations, and information about the delivery foothold. Delivery schedules may change with seasons, promotional offers, and economic factors. Variability in LPG prices needs to be planned for, along with emergency stock and equipment for freezing or switching to different fuels. Permanent installations should consider layout and storage when planning for and supporting any outside storage stations. Road and air transport, bucketing for intermittent use, and the utilization of commercial LPG services with established outlets should be included in the plan.
5.2. Energy efficiency and emission implications
Assigned for LPG appliances designed for diesel use, energy efficiency and emissions can be complex. The Generally Applicable for LPG Implementations applied for commercial catering establishments state the importance of energy efficiency and have set minimum levels of energy efficiency for such applications use. The Gas Transport and Distribution Utilities requirements may also require remedial action to improve energy efficiency of appliances installed at above 70% cooking energy load. An overall consideration, therefore, when converting diesel to LPG is the energy performance of the existing appliance(s) and the efficiency benefits from reselecting LPG appliances designed for diesel use. These may have higher energy efficiency performance than the appliance used for diesel; or conversely, may result in reduced energy efficiency.
In addition to primary energy consumption savings, the overall GHG emissions should also be carefully considered. The Carbon Trust report on replacement of red diesel with LPG in catering and hospitality applications, minus the potential energy efficiency issues at higher cooking loads being indicative, has quantified the relative advantages of LPG against red diesel. The quantification relates only to change in primary energy use and associated emissions and does not take account of other GHG emissions associated with LPG use compared with diesel. Other primary fuel switches, and alternative fuel sources such as electric ovens using renewable sources, should monitor and consider similar potential issues. Battery systems or complete replacement of disengaged cooking equipment should also be considered where feasible.
5.3. Maintenance, monitoring, and leak detection
With proper operating and leak detection controls in place, LPG provides a safe energy source with little risk of hazard to persons or property. Nevertheless, leaks can occur and present a risk. There have been cases of people sustaining serious burns or dying as a result of LPG igniting close to a leak, usually a result of their smoking or lighting a naked flame nearby. In 2021, there were six fatalities in Great Britain associated with LPG. The presence of an odour and the application of good maintenance practices have contributed to the fact there have been no known deaths from an LPG leak.
The main reason for setting up a leak detection programme at a commercial premises is the potential for injury in the event of an LPG leak. Such a programme involves monitoring for the presence of LPG in, on, or around the premises. Monitoring for leaks can be integrated into a wider health and safety risk assessment. Regular monitoring of LPG installations is important to maintaining safety. It is one of the safety precautions identified by the UK LPG industry, and it is a legal requirement of the Health and Safety at Work Act 1974, the Management of Health and Safety at Work Regulations 1999, and the Dangerous Substances and Explosive Atmospheres Regulations 2002. To ensure installations remain fit for purpose and safe, regular maintenance is also important. The CSA recommends maintenance contracts.
6. Economic and environmental impact
The total cost of ownership (TCO) for using LPG helps explain why many UK businesses are adopting the fuel. In a TCO analysis, annual costs of fuel and lubricants, other consumables, insurance, and depreciation of plant, machinery, and equipment are added together and divided by the total number of miles driven or hours worked. Jointly funded research by the Department for Transport and industry concluded that LPG is substantially cheaper than diesel when the relative costs within the costing model are taken into consideration. LPG also produces significantly lower carbon emissions than diesel vehicles when the TCO is applied on a miles-per-mile basis.
In the medium to longer term, the LPG industry must find alternatives to the fossil-based feedstock that is consumed. Government targets, the Climate Change Act 2008 and the Low Carbon Plan conversion of 20% of local authority vehicle fleets to alternative fuels—together with the expected growth in use of hybrids and all-electric vehicles—will accelerate the process of transition. Looking further forward, Royal Academy of Engineering research projected that the increase in the carbon price among the proposals for the 2050 Roadmap to a low-carbon economy might make all fossil-based fuels unattractive in about 2035 if alternatives are developed. Taken with the likely move away from direct subsidies for electric vehicles, innovation into bioLPG or even synLPG appeared ever more essential.
6.1. Cost of ownership and total cost of operation
Total cost of ownership for an LGP system from an economic standpoint is estimated by a combination of the following components: – Cost of the fuel delivered to the point of consumption, usually at the site of storage. – Cost of operation and maintenance of the system. – Cost of installation of the system.
Cost of LPG is expressed as £/kWh and TCO is expressed in functional unit £/kWh or £/year. LPG cost (total supply chain cost from plant to consumer to give price at bunkering industries) is taken from British Gas Bunkering Market. In addition LPG is prone to pricing fluctuations both in absolute currency value and respect to the other fuels it competes with, namely – oil and oil derived products such as diesel and gasoline – electricity – natural gas.
The total cost of ownership is broken down into subcategories. The diesel user has to consider the cost of transportation to and from the refuelling stations, storage at the depot and down time of the transport for delivery. The work does not include these costs for LPG since usually the bunkering industries are in close proximities to the marine terminals, while some do operate with a bunkering ship service delivering LPG to the marina along the near cost line.
6.2. Carbon footprint and regulatory trends
The total cost of ownership—a metric comprising not just price and usage but installation, servicing, storage, and delivery—is where LPG may fall short of natural gas. But the carbon footprint of a typical LPG installation, even before considering Eco schemes or the use of alternative renewables, is markedly smaller than for heating oil systems.
With the UK government imposing a ban on the sale and installation of off-grid diesel heating solutions, inspecting current heating systems for LPG compatibility and considering conversion are at least investments worth making. For those with backup heating or combined heat-and-power solutions, using LPG rather than diesel is a no-brainer.
But for many considered more, the use of LPG may eventually become redundant as hydrogen, or bio-Natural Gas, becomes freely available through the National Grid. The emerging question now is how to future-proof: it is expected that most domestic and commercial LPG- and oil-fired central heating boilers could be simply converted to operate on hydrogen. LPG may offer an interim solution even for those buildings, companies, groups where the switch to hydrogen is deemed feasible.
6.3. Alternative fuels and future-proofing strategies
Total cost of ownership is a common consideration for sustainable energy technology investment, but simply shifting to cheaper energy can mask a project’s real cost. LPG combustion is cleaner than diesel at the point of use, but the total carbon footprint—including sourcing, processing, and distribution—may be larger, especially when considering the full fuel lifecycle (including vehicle manufacture, operation, and disposal). The relative cleanliness of combustion emissions means LPG remains a fallback technology in diesel-reliant sectors such as agriculture, construction, and transport, but future-proofing directors and fleets against a tightening regulatory landscape increasingly drives investment in replacements.
Decision-makers in the hospitality and summer events space are directing resource toward clean alternatives on the back of changing weather patterns, shifting social-customer expectations, and fears of inciting protest. The economics and performance of alternative fuels remain central concerns. Hydrogen offers a direct-replacement solution but comes with higher cost, lower energy density, and stringent storage and distribution requirements; hydrotreated vegetable oil (HVO) and hybrid-electrics are comparable but supply chains are still maturing. Available and forecast costs for those fuels and technologies—and carbon pricing—will determine how quickly natural gas- or diesel-fired positions can be converted to alternatives with lower TCO. The economic implications of different energy sources, and their assessment relative to time to supply and ease of sourcing, mean companies require clear case-by-case guidance to determine the right solution.
7. Procurement and supplier selection
Expectations and operational requirements differ broadly across the LPG supply chain for industrial-scale users and smaller businesses. Therefore, choosing equipment and service providers requires careful evaluation of multiple aspects. Cost remains a primary concern but to reduce risk and achieve operational efficiency, businesses should also assess logistics and service levels. Consideration of contract terms, early engagement with suppliers, and dialogues on planned usage can shape a transparent procurement and service delivery process.
Building a relationship with suppliers on these lines reduces the service risk quotient and mitigates issues—supply chain Gordon Gekko might gladly have sold “greed is good” policy in favour of “watch is good”—the costs of leaks, spills, and other losses. Procurement choices can include the clear statement of service level agreements (SLAs) and residual risk appetite. Tariff management is a specialist service of major players with in-house purchasing desks, but support can be contracted even if the business chooses an independent distributor. Integrating the consolidation of use and procurement strongly into overall planning helps avoid overspend on logistics.
7.1. How to evaluate suppliers and service levels
Evaluating suppliers starts with defining your needs: How much gas will you use (number of cylinders, bulk or on-site storage)? What fittings and regulators do you require? How will you use it (catering, construction, heating)? On-Site Supply (OSS) installations will need more planning than a simple collection of cylinders. What level of service will you require? Emergency deliveries? Out-of-hours collections? Second-source back-up for larger users? Then assess how these needs fit with potential suppliers. For more significant companies, you should consider the logistics of delivery, collection and emergency assistance.
The supplier’s service levels should be matched to your requirements. Supply contracts with the provision of a guaranteed number of cylinders per day are atypical in many sectors, but if there is a clear understanding between customer and supplier, failure to meet agreed day delivery can provide grounds for a claim. Supply agreements here may or may not have a bespoke SLA, but day-vessel provision will have one.
7.2. Contract terms, SLAs, and risk management
In addition to service quality, effective risk management feeds into supplier selection and contract negotiations; it’s advisable to understand what could go wrong—gas supply disruption, equipment failure and repairs, accidental damage to the gas supply network—and how these risks are managed.
Clearly defined service-level agreements help protect against disruption due to negligence or supplier bankruptcy. LPG storage from multiple suppliers at a site with sufficient storage can moderate supply risk, as can installation of two or more separate gas supply systems, each fed from a different supplier’s gas pipeline. Gas shortages due to national supply disruption are more challenging to mitigate, especially for businesses not positioned to embrace an alternative fuel supply in an emergency.
8. Implementation roadmap
LPG is not for everyone. The decision to use it involves trade-offs that must be evaluated by each business. A structured process can help assess LPG’s feasibility and develop a business case when the need exists. Missing or poorly executed steps add risks and costs for all but the simplest adoptions, especially those needing significant storage or delivery infrastructure.
The first stage of the lifestyle arc, assessing feasibility, determines whether LPG use is practical. What size tanks are required? Are there sufficient connections to the supplier network? Do site logistics permit tanks of that size to be delivered? Has the local distributor indicated an intention to provide the service? When the response to a major issue is NO, the business case will not progress without considerable additional investment or compensatory benefit elsewhere in the decision. Although these questions must be answered, reconciling them simply ensures it is possible rather than sensible. As a result, the LPG fuelled equipment in earlier sections may be fully viable yet either unreliable or uneconomic. Questions like those raised in exploring total cost of ownership and environmental trends are equally relevant.
Project stages outside the feasibility check follow a lifestyle arc from preparation to decommissioning. Some stages, like scoping project preparation or decommissioning engines, are self-explanatory. Others, while general in nature, overlap with input from other sections: logistics shape delivery, maintenance is implicitly part of fuel cost, and requirements for safety and equipment inspections echo compliance work in sector standards.
Once need and timing have been assessed, a business case must be developed before work can commence. LPG does not qualify for the UK’s Plastic Packaging Tax, so a small business using it might benefit from the government funded levelling up project. Indeed, exploring options like these could be added to monitoring demand or carefully assessing the best time to change if storage seems limited. Availability is key where tanks need to be ordered, budgets resynced before the contract signed, or decisions followed by long delivery times.
8.1. Assessing viability and business case development
Establishing an LPG gas supply for commercial use is not trivial, requiring investment and commitments over time. Before any practical work is undertaken, viability should be assessed, and a business case developed. While formal approval steps will differ from one organisation to another, it is common to prepare a summary project plan as part of that process.
A project assessment/briefing should document expected requirements and costs, plus anticipated benefits. It should draw on LPG’s characteristics and regulatory requirements (section 1), local/area logistics (section 4), and full operational and pronounced maintenance considerations (section 6). Timing of implementation should also be considered. Understanding local logistics can help determine demand volumes over time (lower volume for all-year supply sources, higher for hospitality trade) and inform costs and further supplier consultation (section 3). Complex jobs—such as telecommunications upgrades preventing closure of roads dug for installation of FTTP/cat6 cabling—can benefit from careful project planning that tracks where all contractors will be and when.
The project must also attract relevant support. For the hospitality trade registered with local authorities, increased footfall especially outside normal hours is generally welcomed, and support services (police, ambulance, firefighters) can add to event attractiveness. Other businesses can try to gain similar support.
8.2. Project planning, timelines, and milestones
UK businesses must evaluate viability and develop a business case before switching to LPG. Undertaking a full project is usually straightforward and can be completed in months. Progressing through the necessary steps almost always leads to implementation, preventing wasted effort on feasibility assessments that uncover insurmountable obstacles.
Compliance with relevant regulations, appropriate logistics, and suitable equipment offer the most crucial ingredients for successful use of LPG. Cross-referencing to safety and environmental requirements (section 2), supply and storage considerations (section 3), and input-power compatibility (section 5) indicates the foundational risk assessment areas. Meeting safety responsibilities and engaging the right suppliers normally features as essential tasks in any business project. From preparation to container delivery, timelines range from just weeks to several months, depending on the work required.
Once these areas are confirmed, a formal business case can be produced. Careful project planning then ensures everything is organised for timely switch-over. Even if the changeover is ultimately delayed, having the plan in place makes it easy to act quickly when circumstances finally permit progress.
9. Case studies and real-world examples
A UK children’s party planning business set out to find an alternative to diesel generators. Maintaining an emphasis on the environment and sustainability, business owners Claire and Karl Monroe were looking to reduce noise, carbon footprint and the use of polluting generators. The weight of our industry and the party sector, whose approach to controlling sound, clear air and sunlight can often requires a sharp cost approach, is greater than that of reducing environmental impact. Achieving the perfect balance is HARD. For one of their larger installations, Claire and Karl worked with a supplier to ensure the products used had a much lower carbon footprint than traditional generators. The suppliers of sound band, lighting and AV were happy with the results. LPG was chosen because of its clear air advantages when compared to diesel. LPG products emit not only less CO2 but zero smoke and other gases associated with the incomplete combustion of diesel as well as the associated noise of a diesel generator. These advantages made LPG the preferred option for these installations.
In the hospitality sector, Mulbury Catering, also saw a similar opportunity. When catering for outdoor events where mains gas cannot be delivered, diesel appliances are often the only option when LPG cannot be used. The CO2LEX research project aims to show that catering appliances, particularly portable kitchens, equipped with a diesel burner can achieve sufficient reductions in greenhouse gas (GHG) emissions. David Mulbury and his team now offer the popular alternative – Mulbury Catering uses Liquefied Petroleum Gas (LPG) for all its heating and cooking purposes. LPG is a clean burning gas that is odourless in its natural state, it has combusted producers heat with virtually no emissions of smoke or sulphur dioxide, easy control, quick lighting and peace of mind for local communities when utilized in temporary installations. Looking to the longer-term future, Mulbury Catering has put measures in place to ensure compliance with all relevant environmental legislation without compromising our commitment to our consumer base.
9.1. Small business adoption stories
Gas-to-Gas Energy Solutions, based in Glasgow, adopted LPG after being denied access to natural gas. Two LPG-powered containers house all the services required for these popular outdoor events, including tap beer, hot food and drink, and toilets. Two hot food trailers also run on LPG, with all the necessary safety systems installed. Andrew McGowan of McGowan & McSparron Construction Limited, a specialist in repurposing derelict buildings, used LPG to provide off-grid heating for a high-end three-bedroom home in the heart of Cowal. Special porches were designed for the building so that, in summer, hot-air balloons could be removed and the large glass sides opened up for view, breezes or simply getting rid of the heat.
Scotch whisky enjoys a worldwide reputation thanks to its unmatched flavour and bouquet. In 1994, the distilling industry accounted for more than £2 billion in exports and provided about 30,000 jobs in distilleries and related GDP. Distilling in the Lowland region is largely completed during the summer months, with many distilleries using the SGS calendar for the reassurance of the food link. Many distilleries use either liquefied petroleum gas (LPG) or natural gas as a combustible medium, and all are under considerable pressure to improve efficiency and reduce fuel costs. An extensive pressurised LPG installation has already been introduced at one of the distilleries, the first of its kind in Scotland.
9.2. Mid-market and enterprise implementations
The preceding section highlighted examples of small businesses adopting liquefied petroleum gas (LPG) for diverse applications. This section looks at two larger deployments. The first involved Acorn, a major UK distributor of specialist building materials. In its Leicestershire operations, daily logistics puts pressure on productivity. Diesel was the traditional fuel for forklifts, but Acorn switched to LPG to improve efficiency and reduce risk, noting reduced running costs relative to petrol, and congestion issues on-site due to diesel fumes.
The second example features an organisation in the health and social care sector that needed business continuity solutions. Given the heightened importance of such solutions as a consequence of the COVID-19 pandemic, the risk of a loss of power due to extreme weather was underlined. LPG was chosen as the fuel source for an off-grid standby gas-fired power generator located at a critical site. The attractiveness of LPG stemmed from its inherent security of supply, and ease of refuelling, coupled with specialist gas engineering knowledge for safe installation and ongoing maintenance operations. A combination of a Lease Plan and a dedicated LPG logistics supplier were used for this particular installation.
These examples illustrate specific LPG adoption scenarios in the small business and mid-market/enterprise segments. Each use case is also embedded in the context of both logistics/supply chain, and total cost of ownership analysis, demonstrating how these fundamental influences shape the outcomes.
10. Conclusion
Although liquefied petroleum gas (LPG) is fully regulated and remains a popular energy choice for many businesses in Great Britain, LPG is becoming more common in a number of new and varied uses, including several at government facilities. These businesses are successfully adopting LPG thanks to its approved safety, increased flexibility and effective environmental policies. However, these uses are not adequately reported, communicated to prospective new entrants, accounted for in business bidding and planning or used to inform debate about the supply chain. Safety authorities and business associations concerned with gas supply and/or business sustainability should therefore consider promoting LPG use more proactively.
The adoption of LPG supplies within businesses across Great Britain has been addressed in a number of comprehensive reviews in recent years, but as LPG is not a natural gas, it is not applied in some use areas. LPG is a clear, colourless gas that is heavier than air and has a slight sweetness resulting in rotgut in low levels. LPG beneficially burns completely and has been labelled by the UK Government Committee of the Climate Change as a transition helpful energy. Furthermore, although the energy density of LPG per kg is lower than that of diesel oil, the higher cost of diesel and the expensive capital costs of advanced diesel-locating systems such as rotary distributors, high-pressure injectors and SCR can all be avoided. LPG is growing in support and level but adoption updates have not yet appeared in published succession reports or on the adoption tracking dashboard of an industry group.