LPG vs Natural Gas: Which One Is Right for Your Home?
If you’re building a home, replacing an appliance, connecting a BBQ, or switching energy sources, the LPG vs natural gas question comes up fast. The two fuels look and smell similar, but they operate differently, cost differently, and suit different situations. This guide cuts through the confusion so you can make the right call for your home.
What Is the Difference Between LPG and Natural Gas?
At the most basic level, LPG and natural gas are different chemical compounds delivered in completely different ways.
Liquefied Petroleum Gas
A mix of propane and butane, stored as a liquid under pressure in bottles or tanks on your property. It becomes a gas when the pressure is released. No mains connection required: your supplier delivers and swaps the bottles or fills your tank on-site.
Mains (Piped) Gas
Predominantly methane, delivered continuously through an underground pipeline network direct to your home. Available only in areas with a gas distribution network. You pay a retailer for what you use, metered at the property.
The key technical difference that matters for appliances: LPG burns at a higher pressure and has a higher energy density per unit of volume than natural gas. This is why the jet sizes inside burners, hot water systems, and heaters are sized specifically for one or the other. Swapping fuels without conversion is not just inefficient, it is potentially dangerous.
How Do You Know If Your Home Uses LPG or Natural Gas?
This is one of the most common questions homeowners have, especially when moving into a new property or buying a second-hand appliance. Here’s how to tell:
You’re on LPG if…
There is a gas bottle (small or large) or a larger LPG storage tank on the side or rear of your property, connected to an above-ground pipe running into the home. Bottles are typically 45 kg cylinders. Larger properties may have a bulk tank.
You’re on natural gas if…
There is a gas meter mounted to your external wall, fed by an underground pipe from the street. The meter has a series of dials or a digital display and belongs to your network distributor. In Melbourne, this is typically AusNet Services.
Still not sure? Check your energy bill. It will specify your retailer and the gas type being supplied. You can also call The Gas Doctor on 0488 800 693 and we can confirm during a visit.
LPG vs Natural Gas: Full Comparison
Here is how the two gas types stack up across the factors that matter most to a Melbourne homeowner:
| Factor | LPG | Natural Gas |
|---|---|---|
| Availability | Australia-wide, including rural and regional areas | Connected suburbs and streets only |
| Supply method | Bottles or bulk tank on-site, refilled by supplier | Continuous pipeline delivery, no interruption |
| Typical running cost | Higher per MJ for most households | Lower per MJ for connected households |
| Energy output | Higher heat output per volume unit | Lower heat output per volume unit |
| Appliance compatibility | Appliances are specific to each fuel type. Conversion required to switch. | |
| Supply continuity | Can run out if bottle not monitored | Continuous — no monitoring required |
| Installation | No mains connection required | Requires connection to street mains (cost and lead time) |
| BBQ use | Portable — no fixed connection | Fixed hose connection to mains, not portable |
| CO2 emissions | Slightly lower per MJ than natural gas | Slightly higher per MJ, though very similar |
LPG vs Natural Gas Cost: Which Is Cheaper?
For most Australian households connected to the mains network, natural gas is cheaper to run on a per-megajoule basis. However, cost comparisons are rarely that simple, and a few factors shift the calculation:
Natural gas advantages on cost
The wholesale price of natural gas delivered via pipeline is consistently lower per MJ than LPG purchased in bottles. There is no delivery fee per fill, and there is no risk of running out mid-use. For households with high gas consumption (hydronic heating, large families, commercial-grade cooking), the saving over LPG is material.
When LPG is the only realistic option
If your suburb or street is not on the natural gas network, the comparison is academic. LPG is your gas option. Connecting to the mains requires an extension to the gas distribution network, which can cost thousands and is only possible if the distributor decides to extend the network to your area. For properties outside the network, LPG is the practical and often sole choice.
When LPG costs less overall
For a new connection to natural gas, there is upfront infrastructure cost plus the conversion or replacement of existing LPG appliances. If you are in a property temporarily, or your gas usage is low (a small household with only a gas cooktop and no gas heating), the cost of connecting to natural gas may never be recouped versus staying on LPG.
LPG vs Natural Gas for a BBQ: Which Should You Choose?
The BBQ Question
This is one of the most searched comparisons in Australia, and the answer comes down to one thing: do you want a portable BBQ or a permanently plumbed one?
In terms of cooking performance, both fuels produce comparable heat for grilling and roasting. LPG burns slightly hotter per unit of volume, but modern natural gas BBQs are designed to compensate for this with wider burners. For most home cooks, the difference in cooking outcome is negligible.
Pros and Cons: LPG
- Available anywhere in Australia, including rural and regional areas where natural gas networks don’t reach
- No connection fee or infrastructure delay to start using gas
- Higher energy density means very efficient combustion in the right appliances
- Portable for BBQs, outdoor heaters, and caravans
- Can be stored and used off-grid
- Slightly lower CO2 emissions per MJ compared to natural gas
- Higher running cost per MJ compared to mains natural gas
- Bottles can run out unexpectedly if not monitored
- Requires dedicated on-site storage space for bottles or a bulk tank
- Delivery scheduling required — you are dependent on your supplier’s timing
- Heavier than air, so a leak in an enclosed space accumulates at floor level (a safety consideration)
Pros and Cons: Natural Gas
- Lower running cost per MJ for most connected households
- Continuous supply with no bottles to monitor or swap
- No on-site storage required
- Paid monthly via your energy bill, like electricity
- Lighter than air, so any leak disperses upward rather than accumulating at floor level
- Wide range of appliances available, from hot water to ducted heating to cooking
- Only available in areas connected to the mains distribution network
- New connection can carry an upfront infrastructure and installation cost
- Appliances are not portable (fixed to the mains supply)
- Network supply interruptions, though rare, affect all connected appliances simultaneously
- Future availability depends on the energy network continuing to expand
Can You Switch from LPG to Natural Gas?
Yes, if natural gas is available in your street. Many Melbourne suburbs are fully connected to the AusNet Services gas distribution network. If your street has a gas main, switching from LPG is entirely possible. Here’s how the process works:
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1
Confirm natural gas is available in your street
Check with AusNet Services (Melbourne’s gas distributor) or your preferred energy retailer. Not all Melbourne streets are connected, particularly in newer outer suburbs.
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2
Apply for a gas connection
Lodge a connection application with AusNet Services. They will extend the gas main to your property meter. There may be a connection fee depending on your property’s distance from the existing main.
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3
Have a licensed gas plumber convert your appliances
Every existing gas appliance (hot water system, heater, cooktop) needs to be converted from LPG to natural gas settings. This involves changing jet sizes and adjusting regulators. A licensed gas fitter must carry out this work.
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4
Decommission your LPG supply
Arrange for your LPG supplier to remove the bottles or bulk tank from the property. Any remaining gas credit is typically refunded.
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5
Connect your energy retailer
Choose a natural gas retailer and set up your account. You will then be billed monthly for mains gas usage via your meter.
Which One Should You Choose?
There is no universal right answer. The best choice depends on where you are, how much gas you use, and what you are trying to do. Here is a simple guide:
- Natural gas is the better long-term choice if your property is connected to the mains or could be connected without prohibitive cost. Lower ongoing costs, no bottle logistics, and a wider range of appliance options all favour natural gas for high-use households.
- LPG is the practical choice if natural gas is not available in your area, if you are on a rural or regional property, if your gas usage is low and the connection cost cannot be justified, or if you need portable gas for a BBQ or camping.
- If you are building a new home in a connected Melbourne suburb, install natural gas from the start. Retro-fitting a connection later always costs more.
- If you are renovating and currently on LPG, this is a good moment to assess whether switching makes sense before new appliances are installed on the wrong fuel type.
A licensed gas plumber can give you an accurate picture of what conversion would cost for your specific property and appliances. That cost, weighed against your annual LPG spend, will give you a clear answer.
Frequently Asked Questions
What is the difference between LPG and natural gas?
LPG (liquefied petroleum gas) is stored as a liquid in bottles or tanks on your property and is mainly composed of propane or butane. Natural gas is predominantly methane, delivered continuously through an underground pipeline network. They burn at different pressures, have different energy outputs, and appliances designed for one cannot safely run on the other without a proper conversion carried out by a licensed gas fitter.
How do I know if my home uses LPG or natural gas?
Look outside your home. If you have one or more gas bottles or a larger LPG storage tank on the property connected by above-ground pipe, you are on LPG. If there is a gas meter mounted to an external wall connected by an underground pipe from the street, you are on natural gas. Your energy bill will also confirm the gas type being supplied to your property.
Is LPG or natural gas cheaper to run in Australia?
Natural gas is generally cheaper per megajoule for households connected to the mains network. However, LPG has a higher energy density per unit of volume, and for properties not connected to natural gas, LPG is the only option available. Cost comparisons should factor in your specific usage, current retailer pricing, and any upfront connection or conversion costs.
Can I use LPG appliances on natural gas, or vice versa?
No, not without a proper conversion. LPG and natural gas operate at different pressures and require different jet sizes inside appliances. Using the wrong fuel without conversion results in poor combustion, carbon monoxide risk, or fire hazard. Most appliances can be converted by a licensed gas fitter, though some manufacturers do not support conversion — check with your appliance supplier before assuming conversion is possible.
Which is better for a BBQ: LPG or natural gas?
LPG is the most common choice for Australian BBQs because it is portable. You can move the BBQ anywhere in the garden and take it off-site. Natural gas BBQs connect permanently to the mains via a fixed bayonet hose, which removes the need to monitor bottles but limits where the BBQ can be placed. Both fuel types produce comparable cooking heat. The decision comes down to whether portability or convenience is more important for how you actually use your BBQ.
Can I switch from LPG to natural gas?
Yes, if natural gas is available in your street. The process involves applying for a mains connection through AusNet Services (Melbourne’s gas distributor), then having a licensed gas plumber convert or replace your existing LPG appliances to run on natural gas. Once connected, you arrange for your LPG supplier to remove the bottles or tank. The Gas Doctor can handle the plumbing and appliance conversion side of the switch. Call 0488 800 693 to discuss your property.