Propane Fuels America: Louisiana

LP Gas’ yearlong Propane Fuels America series takes a deep dive into how each state benefits from the propane industry. Here’s our report on Louisiana.

Total odorized propane demand (2019): 52 million gallons

U.S. rank for gallons sold: 47

Gallon sales trend: Louisiana sold 48 million gallons of propane in 2017 and 52 million gallons in 2019, an increase of 8.3 percent.

Census region/division gallons: South: 2.61 billion/West South Central: 747 million

Propane autogas school buses/districts and contractors: 261/11

---

Market pointers

⦁ With storms, flooding and hurricanes increasing in frequency, Randy Hayden, executive director of the Louisiana Propane Gas Association (LPGA), says the state industry has seen growth in the propane-fueled generator market due to power outages.

⦁ LPGA partnered with the Miss Louisiana organization to promote propane and help mold the public’s perception of the fuel to recognize it as a clean, low-emissions fuel with many purposes. “We’ve got these incredibly smart women that are very talented and that are competing for scholarship money; then they’re affiliated with the Miss America organization,” Hayden says. “And since propane is an American fuel, we just think that it’s a great relationship.” The association has maintained that partnership for about a decade and plans to continue it for a while, it says.

⦁ The major issue affecting Louisiana’s propane industry is the natural gas industry. According to Hayden, the natural gas industry introduced a “ban the ban” state bill to protect natural gas from electrification and climate-related legislation. However, the natural gas industry did not include propane as part of that bill, and when LPGA tried to amend the legislation, the natural gas industry refused. Hayden says LPGA’s top priority is to be included in the “ban the ban” bill once the state recovers financially from the coronavirus pandemic.

⦁ LPGA sees autogas as a growth area. When Louisiana received $19 million in Volkswagen funds, Hayden says, about half went to propane autogas-fueled buses. “We’re very proud of that,” he says. “And we were very proactive in trying to make that happen quickly.”

⦁ Several of the nation’s major propane pipelines run through the state. While its propane usage is relatively small compared to other states, it is one of the leading producers in the country. In fact, it ranks as one of the top five propane-producing states in the U.S. and hopes to continue being a leader in that area, Hayden says.

---

Fast facts

State association affiliation: Louisiana Propane Gas Association (LPGA)/lapropane.org

Programs: Louisiana has a market development fund, and LPGA has been using available funds to promote propane for 30-plus years. Propane industry members contribute to the fund, and each year the association hosts sponsorships for the homebuilders association, as well as advertising via radio, television, newspapers, direct mail and billboards to bring awareness to propane in the state.

Marquee events in 2021: LPGA is set to host a joint summer convention with the Alabama Propane Gas Association June 27-30 in Pensacola Beach, Florida, and plans to conduct more in-person events with the association throughout the year as coronavirus-related concerns begin to diminish.

Before COVID-19: The propane industry in Louisiana had contributed more than $913 million to the 2018 state economy. It’s too early to assess COVID-19’s impact on the state’s gross domestic product.

“Because of the infrastructure that we’ve got, the proximity to Texas and the proximity to the Gulf, and with the interstate system and the rail system that Louisiana has, we’re one of the top five producers of propane.” – Randy Hayden, executive director, Louisiana Propane Gas Association

---

What’s the weather?

Average temperature (2020): 68.1 degrees F

Annual heating degree-days five-year average (2015-19): 1,492
U.S. average: 4,090

---

Sources: Propane Education & Research Council’s U.S. National and State Propane Market Profiles; Annual Retail Propane Sales Report; propane.com; Louisiana Propane Gas Association; U.S. Energy Information Administration’s State Energy Profiles