Not to be confused with propene. Propane is a three-carbon alkane normally a gas but compressible to a transportable liquid. A by-product of natural gas processing and petroleum refining it is commonly used as a fuel for engines oxy-gas torches barbecues portable stoves and residential central heating. A mixture of propane and butane used mainly as vehicle fuel is commonly known as liquefied petroleum gas (LPG or LP gas). It may also contain small amounts of propylene and-or butylene.