The term LPG stands for Liquefied Petroleum Gas. It is also known as butane or propane. It is used as a fuel for cooking purpose apart from its use in heating equipment and for powering vehicles. The LPG is prepared by refining petroleum or wet natural gas and it is mostly derived from the fossil fuel sources. It is manufactured during the refining of crude oil or it is extracted from the natural gas streams as they emerge from the ground or it is derived from petroleum products.