Propane Fuels America: Texas

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 Texas.

Total odorized propane demand (2019): 449 million gallons

U.S. rank for gallons sold: 7

Gallon sales trend: Texas saw 13 percent growth in retail gallon sales from 342 million gallons in 2017 to 386 million gallons in 2018. Sales spiked again the following year, with 16 percent growth from 2018-19.

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

Propane autogas school buses/districts and contractors: 2,869/55

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Market pointers

⦁ Texas’ position as the second-most populous state in the U.S. contributes to its position in the Top 10 states for retail propane gallon sales. While heat pumps have posed a threat to space heating volumes, the state’s rapidly growing population supports residential growth opportunities, says Bill Van Hoy, executive director of the Texas Propane Gas Association (TPGA).

⦁ Border cities like Laredo, which conducts international trade with Mexico, and the major city centers of Houston, San Antonio, Dallas and Austin generate demand for forklifts and other industrial and commercial applications for propane, says Van Hoy. Texas ranks No. 2 in the country for gallon sales to commercial and cylinder markets, and No. 1 in non-forklift industrial markets.

⦁ Texas is the country’s energy hub, ranking No. 1 in both crude oil and natural gas production, according to the U.S. Energy Information Administration. As a result, it’s also a major hub for propane storage and distribution. Propane prices at the major storage facilities of Mont Belvieu are indicative of pricing trends around the country.

⦁ Texas made national news in February when a rare winter storm disrupted energy production and resulted in widespread power and water outages. Propane distribution was also delayed in some areas, but any shortages were short term, explains Van Hoy.

⦁ An abundance of funding opportunities has made Texas the No. 1 state for number of autogas school buses. Government grant programs like the Texas Emissions Reduction Plan administered by the Texas Commission on Environmental Quality are a major source of funding. “TPGA has been very active over the years to ensure that grants from state government include funding for propane vehicles,” says Jackie Mason, regulatory and senior legislative affairs director at TPGA.

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Fast facts

State association affiliation: Texas Propane Gas Association/txpropane.com

Legislative action: TPGA is monitoring more than 300 bills this Texas Legislative Session, and several impact the propane industry from downstream to midstream, says Jackie Mason, regulatory and senior legislative affairs director.

Programs: In spring 2021, TPGA launched its Texas Saves with Propane Appliance Rebate Program for homeowners and businesses. And for more than a decade, the Texas Duty to Warn Safety Mailing Program has sent safety information to more than 200,000 propane customers in Texas each year. In addition, the TPGA Scholarship Foundation has distributed $150,000 worth of scholarships over the past 24 years.

Marquee events in 2021: The 2021 Crossroads TPGA Propane Expo & Conference will be held Aug. 12-14, 2021, in Corpus Christi, Texas.

“I think people who had natural gas or propane were probably very happy to have it, whatever appliances. When you have at least the ability to cook on your stovetop or in your oven, that was a wonderful thing when the electricity went out.” – Bill Van Hoy, Texas Propane Gas Association, on February’s winter storm

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What’s the weather?

Average temperature (2019): 66.8 degrees F

Annual heating degree-days five-year average (2015-19): 1,864
U.S. average: 4,090

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