Propane Fuels America: Nevada

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 Nevada.

Total odorized propane demand (2019): 53 million gallons

U.S. rank for gallons sold: T-44

Gallon sales trend: Nevada has hovered around the 50-million-gallon mark for the past several years. It sold 50 million gallons in 2017 and 48 million in 2018.

Census region/division gallons: West: 1.71 billion; Mountain: 803 million

Propane autogas school buses/districts and contractors: 70/2

Market pointers

⦁ The residential sector – where only three in 100 Nevada households use petroleum products, mostly propane, for home heating – accounts for 1 percent of state petroleum consumption. Nevada’s warm climate reduces the opportunity for propane to displace other home heating fuels. In 2019, propane marketers sold about 36 percent of gallons for residential purposes.

⦁ Much of Nevada has limited natural gas pipeline connectivity, increasing the attractiveness of alternative fuels. The commercial sector, already accounting for just over 30 percent of propane sales in 2019, is likely best positioned for further propane demand growth – buoyed by moderate economic growth and healthy median incomes. Nevada’s transportation sector is the largest energy consumer in the state, followed by industrial consumption.

⦁ In order for Nevada to reach its goal of net-zero greenhouse gas emissions by 2050, the state must reduce its use of natural gas, says Gov. Steve Sisolak. Natural gas is the primary source for electricity generation in the state. The Democratic governor is calling for further review by the Public Utilities Commission of Nevada. The National Propane Gas Association labels Nevada an “imminent threat,” referring to proposed anti-gas and/or pro-electrification policies.

⦁ When it comes to natural gas, some propane marketers in the state face a “double-edged sword,” says Mike Eriksen, president of Wells Propane. Gas bans would likely impact propane marketers, but Eriksen says his company has also felt the impacts of natural gas expansion into his “backyard” in recent years.

⦁ In 2019, Nevada ranked second in the nation in electricity generation from geothermal energy and fourth in utility-scale generation from solar energy. Nevada leads the nation in solar power potential, the U.S. Energy Information Administration reports.

Fast facts

State association affiliation: Nevada Propane Dealers Association/nvpropane.net

Reno, Nevada, will host the Western Propane Trade Show & Convention on Aug. 11-13. (Photo: DenisTangneyJr/E+/Getty Images)

Programs: Safe appliance rebate program, which allows marketers to apply for rebates on behalf of their customers. … The state will resume its CETP training calendar this summer under COVID-19 protocols.

Marquee events in 2021: Nevada is among a group of states co-sponsoring the Western Propane Trade Show & Convention, scheduled this year for Aug. 11-13 in Reno, Nevada. The state association’s Hall of Flame dinner and membership meeting will be held this year in conjunction with the Western show.

Before COVID-19: The propane industry in Nevada had contributed about $196 million to the 2018 state economy. It’s too early to assess COVID-19’s impact on the state’s gross domestic product.

“The industry is very much looking forward to our in-person training provided by Eric Smith, director of education and code development and former chief inspector for the Nevada LP Gas Board, who is highly regarded in Nevada’s propane industry.” – Lisa Menante, executive director, Nevada Propane Dealers Association

What’s the weather?

Average temperature (2019): 52.4 degrees F

Annual heating degree-days five-year average (2015-19): 3,124
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; Nevada Propane Dealers Association; U.S. Energy Information Administration’s State Energy Profiles