Natural gas is more expensive than propane gas.
While the price of natural gas is being driven to record highs by the current energy crisis, this is not the case for propane gas. Why theprice of propane gasdoes not rise? This is because it is linked to the price of crude oil, not natural gas. Since the war in Ukraine, propane gas has indeed become cheaper than natural gas. We have noticed this at OK GAS as well. For instance, commercial director Martijn Knollema stated in an interview with LTO Nederland that OK GAS is 'overwhelmed with requests'.
Consumers in urban areas are also making the switch.
And that is new. Until recently, natural gas was always cheaper than propane gas. There was no reason to switch. "Until recently, propane gas was only used when there was no natural gas connection available. There was no other reason. But now that heating with propane gas has become relatively cheaper, more and more people are making the switch."
At the time of writing, propane gas is approximately three times cheaper than natural gas. Many businesses and households want to move away from natural gas, and this shift is even being encouraged by the government. Various methods for heating buildings are being explored, with propane gas being one of them. As the waiting times for solar panels and heat pumps are also increasing, the requests are pouring in. 'Propane gas is truly gaining popularity among the average consumer.'
Propane gas as a transition fuel towards sustainability.
“Solar panels and heat pumps are no longer available. And even if you do get a chance, the costs are quite high. It’s not for everyone,” says Knollema. OK GAS can typically deliver within two to three weeks. Delivering and installing a propane tank is relatively straightforward. We will also replace the current equipment and connections.
It is a logical intermediate step for businesses and consumers to permanently transition away from natural gas. Ultimately, everyone must move away from natural gas. By switching to propane gas, you give yourself time to transition to sustainable alternatives.
What does the transition to propane gas look like in practice?
That is what Angeline Pex shares. She is the owner of a horse boarding facility and a transport company in Limburg. For her, the choice was very simple. Her business does not have a fixed connection to the natural gas network and had to look for an alternative due to high gas prices. She chose propane with OK GAS aspropane gas supplier.
In addition to heating the home, she also washes the horses that need to participate in competitions. For this, they have installed a large boiler in the horse stable. In winter, she always washed the horses with warm water. However, this changed last winter when she was still heating with natural gas. Due to the high gas prices, she was forced to turn off the hot water tap for washing the horses. "Then we'll just wash them with cold water."
Now she uses one full tank for a month and a half.
Pex, which claims to be economical in its usage, can operate for a month and a half on a full tank during the winter months. Last year, she was shocked by the gas bill due to the current gas prices. When she saw an article from LTO Nederland and discovered that as an LTO member she could receive a nice discount with OK GAS, she decided to switch quickly. Martijn visited her, and the transition went smoothly. The new tank was connected promptly. Although all the internal pipes were re-inspected, the connections were already in place. This allowed for a quick installation.
What is the cost of a propane tank?
The rental price of a propane tank from OK GAS varies and depends on the size of the tank. For a standard situation with one connection, the connection costs, including the installation of the underground piping, amount to approximately 750 euros.
Connecting the combustion equipment.
The customer is responsible for connecting the propane gas to the combustion equipment. This must be adjusted due to the difference in calorific value between propane gas and natural gas. This adjustment is usually quite simple, but it is left to the customer's installer. As a supplier of gas tanks and propane gas, OK GAS does not assume any risks associated with the installation of combustion equipment. The expertise of a true specialist is required here.
Before OK GAS installs a propane tank, customers must meet several strict conditions due to practical and safety-related circumstances. Knollema: "This includes minimum distances from buildings and property boundaries, as well as the availability of sufficient space for the tank trucks. In residential construction, it can quickly become challenging to meet these space requirements, leading to difficulties."
What does the transition to propane gas look like?
For customers of OK GAS, the step-by-step plan is very clear. A quote request can easily be submitted via the website. The suitability of the location is then checked immediately. After a quote for the tank rental, including connection costs and gas price, has been prepared, a visit from OK GAS will follow. "During this visit, an account manager will assess the situation and provide advice on what may need to be done to theplacement of the tank"and to make the connection to the buildings as easy as possible," said Knollema.
Every situation is different and requires tailored advice. Once everything is finalized, the definitive quote will follow. Knollema: "When the overall picture is approved, we will place the tank in the agreed location and ensure that the pipes run up to the door. Wherever you want us to deliver the gas, we will bring it there. After that, it is the specialist's responsibility to connect the gas to your installation."
No more worries about our propane tank.
With Angeline, OK GAS has gained a very satisfied customer. “I am extremely pleased with OK GAS and the use of propane. The propane tank has a convenient transmitter that measures the gas level and communicates it to OK GAS. This way, we don’t have to worry about refilling the tank. This was different in the past when we were with another supplier. There were no transmitters then, and things often went wrong. Sometimes it took days before we had gas again, and once we even spent nearly two weeks in the cold. I never want to experience that again. Fortunately, we now have OK GAS, and we are very happy with it.”
Did you know that…
The greenhouse horticulture sector is the ideal industry to transition from natural gas to propane gas. Heating costs are spiraling out of control as they rely on their combined heat and power systems (CHP). As a supplier of propane gas, we are in discussions with several of these companies. They can heat at an attractive rate using propane gas instead of natural gas. This makes it a very interesting and realistic alternative.
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