 LPG is a derivative of two large energy industries: natural gas processing and crude oil refining. When natural gas is drawn from the earth, it is a mixture of several gases and liquids. Methane, which is sold by gas utilities as "natural gas" constitutes about 90 percent of this mixture. Of the remaining 10 percent, 5 percent is propane and 5 percent is other gases such as butane and ethane. Before natural gas can be transported or used, LPG are separated out. Some LP Gases are also trapped in crude oil. In order to stabilise the crude oil for pipeline or tanker distribution, these "natural gases" are further processed into LPG. Worldwide, gas processing is a source of approximately 60% of LP Gas produced. In crude oil refining the LPG is the first product produced on the way to making the heavier fuels such as diesel, jet fuel, fuel oil, and gasoline. Roughly 3% of a typical barrel of crude oil is refined into LPG although as much as 40% of a barrel could be converted into LPG. Worldwide, crude oil refining is the source for the other roughly 40% of LPG supplies.
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