Australia Propane Market Size, Share and Outlook: Forecast Trends and Growth Analysis Report (2026-2035)

Key Market Trends and Insights

• Western Australia dominated the market in 2024 and is projected to grow at a CAGR of 1.5% over the forecast period.
• By application, transportation category is expected to grow at a CAGR of 1.7% over the forecast period.

Market Size & Forecast

• Market Size in 2025: 909.81 KMT
• Projected Market Size in 2035: 1035.25 KMT
• CAGR from 2026 to 2035: 1.30%
• Fastest-Growing Regional Market: Western Australia

Market‍‌‍‍‌‍‌‍‍‌ players are increasingly focused on acquiring regional LPG assets to improve their scale, enlarge depot networks, and make last-mile service more efficient. The consolidation trend got a boost when WesCEF announced the sale of its LPG distribution business to Supagas in May 2024. This move changed supply dynamics in Western Australia propane market and the Northern Territory by transferring large customer and depot networks to a single, rapidl y growing operator.

The effect was significantly felt after the sale of the Kleenheat LPG distribution was completed in December 2024, thus allowing Supagas to fully integrate operations, rebrand distribution points, and invest in fleet alignment and customer systems through the deployment of the funds.

These consecutive deals highlight how consolidation is becoming the main leverage for growth, and integrated distributors are taking the scale they need to delivery efficiency, to better procurement terms, and to expand their Australia Propane market scope.

Recent Developments

June 2025

The Australian Pipelines & Gas Association (APGA) welcomed NGERS reforms that credit emissions reductions from certified renewable gases such as biomethane. This regulatory support is expected to encourage investment in carbon-neutral gas infrastructure, subtly enhancing the overall LPG market by promoting sustainable solutions and long-term supply reliability.

July 2025

Supagas, part of Nippon Sanso Holdings Corporation, completed the acquisition of Coregas Pty Ltd, expanding its industrial gas and LPG operations across Australia and New Zealand. This strategic move strengthens supply networks and enhances service coverage and indirectly supports Australia​‍​‌‍​‍‌​‍​‌‍​‍‌ propane market‍​‌‍​‍‌​‍​‌‍​‍‌ by improving distribution efficiency and accessibility.

March 2025

Gas Energy Australia (GEA) praised the AUD 250 million government commitment under the “Future Made in Australia” program to boost low-carbon fuels, including bioLPG. By enabling large-scale renewable LPG projects, this funding indirectly supports market expansion and adoption of cleaner propane solutions, reinforcing confidence among suppliers and consumers.

November 2023

Gas Energy Australia (GEA) urged the federal government to recognize LPG as a “renewable super gas,” noting that net-zero bioLPG could become commercially available by 2025–26. This initiative helps stimulate market confidence and encourages sustainable investment, subtly fostering long-term growth opportunities for the domestic propane industry.

Key Drivers and Trends

Strengthening​‍​‌‍​‍‌​‍​‌‍​‍‌ supply security via strategic storage

The Australia​‍​‌‍​‍‌​‍​‌‍​‍‌ propane market‍​‌‍​‍‌​‍​‌‍​‍‌ is witnessing steady growth as the energy sector increasingly focuses on building a more reliable system. As a result, downstream companies are investing in large storage facilities to protect against supply disruptions. Mobil Oil Australia took the lead, for instance, when it announced a refurbishment plan of its Melbourne terminal In November 2023 to add nearly 150 million litres of petrol and diesel capacity by mid-2025. The expansion does signal the fuel suppliers' move to energize the infrastructure proactively, thus, enabling them to perform logistics with ease and also be in a position to support the national fuel security schedule of the long run.

Sustaining upstream gas via compression projects

Upstream figures are turning towards feasible technical solution to fall pressures in reservoirs of offshore gas fields which, in turn, is influencing the development of the Australia​‍​‌‍​‍‌​‍​‌‍​‍‌ propane market‍​‌‍​‍‌​‍​‌‍​‍‌. Re-investing in compression infrastructure has become the critical lever for feedstock continuity for LPG. In October 2024, Esso Australia celebrated the completion of the Kipper Compression Project, the compression part on the West Tuna platform to maintain natural gas production was the major task. Not only that, but this project by fixing the gas supply from the Gippsland Basin is also backing the downstream LPG production, and the industrial and commercial users' supply guarantee is being done this way.

Gas reallocation to domestic market

A policy-regulated market is directing a lot more gas to the Australian domestic market, thus giving the supply side in the Australia​‍​‌‍​‍‌​‍​‌‍​‍‌ propane market‍​‌‍​‍‌​‍​‌‍​‍‌ a boost. In March 2025, the Albanese Government and APLNG signed a domestic supply deal under the Gas Code of Conduct that would secure up to 10 PJ per year through 2029. Such a commitment provides downstream LPG players with a greater degree of certainty regarding their upstream feedstock, which in turn drives prices down and promotes long-term contracts.

Consolidation through strategic acquisitions

Distributors of LPG are on a single path to consolidation that leads them to have more control over logistics and supply chains, which is boosting the growth of the Australia​‍​‌‍​‍‌​‍​‌‍​‍‌ propane market‍​‌‍​‍‌​‍​‌‍​‍‌. Elgas declared the intention of purchasing Rivet Energy, Australia's major LPG tanker fleet operator, and furthermore, announced in September 2023 that it would acquire Rivet Energy, Australia's LPG tank fleet leader, including its depots, vehicles, and staff, in one lot. All through this transaction, Elgas internalizes transport and distribution capacity, thus solidifying the national network, improving delivery efficiency, and making supply more secure for bulk as well as retail LPG customers by meeting their different needs.

Regulatory support via the gas market code

The government policies play a direct role in sustaining domestic gas supply especially through the Gas Market Code. The facility in Walloons (part of Shell's QGC business) was able in June 2024 to sign the commitment to supply an extra 40 PJ to the Australian east coast market from 2024 through 2027 under a condition of the Code. Such a regulatory shelter serves as a guarantee for downstream LPG distributors in supply ensuring they are less exposed to risks and more open to enthusiastic participation e.g., infra-sector development ​‍​‌‍​‍‌​‍​‌‍​‍‌investment.

Australia Propane Market Share

By application, industrial sector registers remarkable growth

Industrial​‍​‌‍​‍‌​‍​‌‍​‍‌ users are turning to renewable LPG (bioLPG) as a way to achieve decarbonisation. BioLPG made from HVO (hydrotreated vegetable oil) is a drop-in fuel and therefore, according to Gas Energy Australia, it can start to replace the conventional LPG from 2025-26 without any changes in the cylinders or infrastructure. This transition, which is mostly good news for the regional industries and agricultural enterprises, such as the production of tomatoes in greenhouses, where LPG is still a major source of energy, is attracting a lot of attention in the Australia​‍​‌‍​‍‌​‍​‌‍​‍‌ propane market‍​‌‍​‍‌​‍​‌‍​‍‌ as well. When companies are thinking of how to reduce their emissions in the long term, industrial players are changing their procurement strategies to include these low-carbon options.

Propane is still the main source of energy in the residential locations, which is the major factor fueling the Australia​‍​‌‍​‍‌​‍​‌‍​‍‌ propane market‍​‌‍​‍‌​‍​‌‍​‍‌ growth, particularly through regional and off-grid households that use LPG for cooking, heating, and hot water. With the growing need for sustainability, industry stakeholders are taking steps to provide cleaner alternatives that can meet long-term residential demand. According to Gas Energy Australia, in 2024, net-zero bioLPG may quickly be available for commercial supply, thus marking a significant change in the direction of household energy with low carbon emissions. Such a move gives strength to the idea that propane can still be useful while at the same time it is compatible with future climate ​‍​‌‍​‍‌​‍​‌‍​‍‌objectives.

Australia Propane Market Regional Analysis

By region, Western Australia registers remarkable growth

Western​‍​‌‍​‍‌​‍​‌‍​‍‌ Australia's propane industry is dependent on less local processing and distribution for small and heavy consumers of the gas. Clough has elevated the capacity of Wesfarmers' Kwinana LPG plant in October 2025 through a major upgrade. This upgrade involved the installation of a new gas train and a liquids extraction facility capable of recovering LPG from 120 TJ/day of natural gas at more than 97% efficiency. The expansion of the supply network in the region is a welcome development for the users in both remote and urban areas of WA who can receive their LPG supply uninterrupted.

Queensland's contributes significantly to the Australia​‍​‌‍​‍‌​‍​‌‍​‍‌ propane market‍​‌‍​‍‌​‍​‌‍​‍‌ revenue, mainly dependent on the upstream gas production, which is the primary source of LPG for the industrial, commercial, and residential sectors. The government greenlighted the plan by Senex Energy to drill over 120 new wells in the Surat Basin in June 2024. The project is expected to produce 60 PJ of gas by the end of 2025. This endeavor provides the basis for a strong feedstock supply, thus enabling increased production of the LPG downstream market and infusion of energy for the continued growth of the Queensland markets that are dependent on ​‍​‌‍​‍‌​‍​‌‍​‍‌energy.

Competitive Landscape

Major Australia​‍​‌‍​‍‌​‍​‌‍​‍‌ propane market‍​‌‍​‍‌​‍​‌‍​‍‌ players are aggressively vying to expand their capacities and carry out infrastructure renovations while deepening their regional penetration to satisfy the increasing industrial and residential demands. To ensure supply reliability, companies are investing in new storage terminals, expanding cylinder distribution networks, and upgrading processing plants. Besides this, the companies are also strengthening their national coverage and supporting long-term growth in key regional markets through strategic acquisitions and partnerships that help them enhance logistics.

To keep up with the competitive landscape of the Australia​‍​‌‍​‍‌​‍​‌‍​‍‌ propane market‍​‌‍​‍‌​‍​‌‍​‍‌, propane companies are also turning to renewable LPG, striving for better operational efficiency and using technology for supply chain optimization. Some of the efforts are pilot projects for bioLPG, advanced delivery monitoring systems, and digital tracking of cylinder inventory. By integrating sustainability measures with infrastructure and service enhancements, leading‍​‌‍​‍‌​‍​‌‍​‍‌ propane companies intend to sustain their market shares, strengthen their presence and be able to comply with both regulatory and consumer demands in all the industrial, commercial, and residential segments.

Saudi Arabian Oil Company (Saudi Aramco)

Saudi Aramco, which is a single integrated energy and chemical company of the highest order in the world, was founded in 1933 and is based in Dhahran, Saudi Arabia. With its unmatched scale and efficiency, the company is involved in exploration, production, refining, and distribution of petroleum and gas to the global markets.

BP PLC.

BP PLC, a leading global energy company that focuses on oil, gas, and renewable energy solutions, was founded in 1909 and is based in London, United Kingdom. The company operates in more than 70 countries and has a wide range of products and services that go from upstream exploration to downstream fuel distribution and sustainable energy initiatives.

ConocoPhillips Company

ConocoPhillips, an international major in oil and gas exploration and production, was founded in 1875 and is headquartered in Houston, Texas, United States of America. The company is a multipronged operator on several markets across continents including the Australia​‍​‌‍​‍‌​‍​‌‍​‍‌ propane market‍​‌‍​‍‌​‍​‌‍​‍‌, producing crude oil, natural gas, and natural gas liquids. At the same time, the company adheres to environmental standards and commits itself to operational efficiency.

Eni S.p.A

Eni S.p.A is a worldwide oil and gas company with diversified upstream and downstream operations. Established in 1953 and located in Rome, Italy, the company is open to the exploration, production, refining, and the renewable energy markets and does business with the customers of Europe, Africa, and ​‍​‌‍​‍‌​‍​‌‍​‍‌Asia.

Other players in the market includes A Nippon Sanso Holdings Corporation, PJSC Gazprom, and others.

Key Highlights of the Australia Propane Market Report

• Covers historical market performance and provides accurate forecasts through 2035.
• Offers insights into product innovations, technology adoption, and LPG solution developments.
• Provides an in-depth competitive landscape, profiling leading domestic and international propane producers, distributors, and service providers.
• Includes regional analysis of the Australia​‍​‌‍​‍‌​‍​‌‍​‍‌ propane market‍​‌‍​‍‌​‍​‌‍​‍‌, identifying emerging growth hubs and market opportunities across Australia.
• Presents an investment-focused outlook, supported by data, helping stakeholders identify profitable opportunities along the propane value chain.

Why Choose Expert Market Research?

• Trusted insights backed by extensive primary and secondary research.
• Actionable data for informed strategic decision-making.
• Region-wise and product-specific analysis to pinpoint growth opportunities.
• Supports market entry, expansion, and investment planning across the propane industry.
• Enables competitor benchmarking and identification of emerging trends.

Call to Action

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