Propane primarily comes from two sources: natural gas processing and crude oil refining.

• During natural gas processing, propane is recovered as one of the liquid components (alongside ethane, methane, butane, and heavier hydrocarbons) when raw natural gas is cooled and pressurized, causing heavier hydrocarbons to condense into liquids that are then separated

• In crude oil refining, propane is produced both during the initial distillation of crude oil and in more complex processes like fluid catalytic cracking, where long-chain hydrocarbons are broken down into lighter molecules including propane

In the United States, nearly equal amounts of propane come from natural gas processing and crude oil refining, with most propane consumed domestically produced in North America

. Additionally, renewable propane can be produced from non-petroleum feedstocks such as vegetable oils and fats, though this is currently a smaller segment of production

. Propane is transported from production sites to distribution terminals via pipelines, rail, trucks, barges, or ships before reaching end users

. In summary, propane is a byproduct of extracting and processing natural gas and crude oil, making it widely available as a domestic fuel source in countries like the United States