Propane Fuels America: Tennessee – LP Gas : LP Gas

Propane Fuels America: Tennessee – LP Gas : LP Gas


LP Gas’ yearlong Propane Fuels America series takes a deep dive into how each state benefits from the propane industry. Here’s our report on Tennessee.

Total odorized propane demand (2019): 127 million gallons

U.S. rank for gallons sold: 29

Gallon sales trend: Tennessee sold 101 million gallons of propane in 2017 and 127 million gallons in 2019, an increase of 26 percent.

Census region/division gallons: South: 2.61 billion/East South Central: 494 million

Propane autogas school buses/districts and contractors: 124/14

Market Pointers

Tennessee passed legislation that protects consumers’ ability to select their own energy sources, including propane. (Photo: Ron and Patty Thomas/iStock / Getty Images Plus/Getty Images)

Tennessee passed legislation that protects consumers’ ability to select their own energy sources, including propane. (Photo: Ron and Patty Thomas/iStock / Getty Images Plus/Getty Images)

⦁ Tennessee has experienced a nearly 9 percent increase in population over the past decade, says Bob Wallace, state director of the Tennessee Propane Gas Association (TNPGA). The population increase provides an opportunity to grow propane gallons across several markets.

⦁ Together with the state legislature, TNPGA helped to pass a “ban the ban” bill in Tennessee when a municipality sought to ban all fossil fuels and allow only electricity to be used. The passed legislation protects the propane industry and customers’ ability to select their own energy sources to power their homes and businesses.

⦁ The state does not have ample fossil fuel reserves, nor does it produce much petroleum, Wallace says. As a result, Tennessee is dependent on national and international markets for its product, and the state has “little to no” ability to influence the price or supply of propane.

⦁ The residential market is Tennessee’s largest in terms of propane gallon sales, making up 60 percent of all gallons sold. Twenty-one counties have shown growth in the residential market for propane heating from 2014 to 2019, per the Propane Education & Research Council.

⦁ TNPGA conducts Certified Employee Training Program classes throughout the summer, with the goal of training industry members while ensuring safety for customers. The association also maintains relationships with the state’s fire marshal office through its safety committee.

Fast facts

State association affiliation: Tennessee Propane Gas Association (TNPGA)/

Programs: TNPGA established a consumer rebate program geared toward “the burner tip,” Wallace says, where rebates are offered on new and retained burner tips in new and existing homes, with varying rebates based on the type of burner tip, including furnace, water heater and more.

Marquee events in 2021: TNPGA planned to host its convention in late September in person, but the event was canceled due to concerns related to the COVID-19 delta variant. The association’s meetings were held virtually this year, and TNPGA says it looks forward to hosting in-person events in the future.

Before COVID-19: The propane industry in Tennessee had contributed more than $832 million to the 2018 state economy. It’s too early to assess COVID-19’s impact on the state’s gross domestic product.

“The Tennessee Propane Gas Association maintains a friendly relationship with the legislature in the state, which has been helpful in legislation to the industry.” – Bob Wallace, state director, Tennessee Propane Gas Association

What’s the weather?

Average temperature (2020): 59.3 degrees F

Annual heating degree-days five-year average (2015-19): 3,644
U.S. average: 4,090

Sources: Propane Education & Research Council’s U.S. National and State Propane Market Profiles; Annual Retail Propane Sales; Tennessee Propane Gas Association; U.S. Energy Information Administration’s State Energy Profiles


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