If propane and butane are major compounds required for making LPG, then how come their price rise have been attributed to KG-D6 basin, which is pure (99.9%) methane (natural gas)?
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Answer:
No way NG price hike is related to LPG price rise directly. But indirectly it may have little effect on price rise due to rise in cost of transportation, major factor for general price rise (inflation), but still not a major factor since in India major transportation cost is decided by diesel. Again must remember LPG is a regulated product.
Shashank Agnihotri at Quora Visit the source
Other answers
Actually, a new natural gas field is usually a source for "wet gases", like propane and butane. They make up a small percentage of the gas flow which is collected using "stripper plants".
Eric Hahn
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