Choosing between natural gas and LPG (liquefied petroleum gas) is one of the first decisions you'll face when setting up or upgrading your home's energy supply. Both fuels power the same appliances — hobs, ovens, hot water systems, and heaters — but they work quite differently, and the right choice depends heavily on where you live and how you use energy at home.
What is natural gas?
Natural gas is piped directly to your home through a network managed by lines companies such as Vector or First Gas. It's predominantly methane, delivered continuously so you never run out mid-shower. Natural gas is available in most urban areas of the North Island and some parts of the South Island, but it does not reach rural or many suburban areas outside the main reticulated network.
Connecting to natural gas requires a licensed gasfitter to install an approved meter and internal pipework. All gas work in New Zealand is restricted work under the Gas Act 1992, meaning it must be carried out by a gasfitter registered with the Plumbers, Gasfitters and Drainlayers Board (PGDB). Never attempt to connect, modify, or repair gas lines yourself — this is both illegal and extremely dangerous.
What is LPG?
LPG (typically propane or a propane/butane blend) is stored in cylinders or bulk tanks on your property and delivered by truck. Major NZ suppliers include Rockgas, Elgas, and Genesis Energy. LPG is available virtually anywhere in New Zealand, making it the default choice for rural properties, lifestyle blocks, and areas without reticulated gas.
LPG cylinders come in standard 9 kg swap-and-go bottles (common for BBQs and small use) or larger 45 kg cylinders for household supply. Bulk tanks — typically 210 litres or larger — are installed on-site and refilled periodically, which suits high-use households. All LPG installation and connection work is also restricted work and must be done by a registered gasfitter.
Head-to-head comparison
| Criteria | Natural Gas | LPG |
|---|---|---|
| Availability | Urban/reticulated areas only | Nationwide, including rural |
| Supply reliability | Continuous — never runs out | Depends on tank/cylinder level |
| Energy content | Lower per cubic metre | Higher energy density |
| Running cost (guide) | Generally lower per MJ in urban areas | Typically higher per MJ, varies by supplier |
| Connection cost (guide) | Higher upfront (network connection fee) | Lower upfront (cylinder/tank install) |
| Appliance compatibility | Requires natural gas–rated appliances | Requires LPG-rated appliances (different jets) |
| Carbon footprint | Slightly lower (less carbon per MJ) | Slightly higher |
| Storage on-site | None required | Cylinders or tank on your property |
| Maintenance | Meter serviced by lines company | Tank/cylinder inspections required |
| DIY scope | None — all work restricted | None — all work restricted |
| Rural suitability | Poor | Excellent |
Cost considerations
Costs vary significantly by region, supplier, and usage, so treat any figures here as a rough guide only.
- Natural gas typically has a lower unit cost per megajoule in areas where it's available, but you'll pay a daily line charge regardless of how much you use. If your household uses gas heavily (cooking, hot water, heating), natural gas usually works out cheaper over time.
- LPG has no line charge, but the fuel itself costs more per MJ. For low-use households — say, cooking only — LPG can actually be competitive because you're not paying a daily standing charge. Bulk LPG tanks generally offer better rates than swap-and-go cylinders.
- Connection costs: Connecting to the natural gas network can involve a significant upfront fee depending on your distance from the main. LPG setup is generally cheaper to get started, though a bulk tank may involve a rental or purchase cost.
Get quotes from your local lines company and at least two LPG suppliers before deciding. Consumer NZ periodically publishes energy price comparisons that can help you benchmark.
NZ-specific considerations
Climate and location matter. In colder South Island regions like Otago and Canterbury, gas heating demand is high — and since natural gas reticulation is limited there, LPG bulk tanks are the practical solution for many households.
The NZ Building Code sets requirements for gas installations, particularly around ventilation (Clause G10) and safety. MBIE Building Performance publishes the acceptable solutions your gasfitter must follow. LPG cylinders and tanks must also be positioned according to strict setback rules from boundaries, windows, and ignition sources.
Healthy Homes Standards apply to rental properties and require adequate heating — gas heaters can contribute to compliance, but unflued gas heaters are restricted in bedrooms and living areas due to moisture and combustion by-product concerns. Check Tenancy Services for current requirements.
Appliances are not interchangeable: a natural gas hob cannot simply be switched to LPG without changing the burner jets and regulator. Always confirm with your appliance manufacturer or a registered gasfitter before swapping fuel types.
Safety — a critical note
Both natural gas and LPG are flammable and potentially explosive if mishandled. All gas installation, alteration, and repair work is legally restricted to gasfitters registered with the PGDB. This includes connecting appliances, running pipework, and commissioning systems. If you smell gas, ventilate immediately, avoid switches and flames, and call your supplier's emergency line or 111. Install a gas detector for added peace of mind — WorkSafe NZ has guidance on gas safety in the home.
Our recommendation
Here's practical guidance for common NZ scenarios:
- Urban homeowner with access to the reticulated network: Natural gas is usually the better long-term choice if you use gas for hot water, cooking, and heating. The lower running cost per MJ and continuous supply outweigh the higher connection cost over time.
- Rural or lifestyle property: LPG is your only realistic option. A bulk tank gives you the convenience closest to reticulated gas — arrange a reliable supplier and monitor your levels, especially heading into winter.
- Low-use household (cooking only): LPG cylinders or a small tank may be more economical since you avoid the daily natural gas line charge.
- Renting or short-term: Swap-and-go LPG cylinders offer flexibility with no fixed infrastructure commitment.
- Considering switching fuels: Budget for appliance conversion or replacement, and always use a registered gasfitter for the changeover.
Whatever you decide, get the work done properly. A qualified gasfitter will ensure your installation is safe, code-compliant, and signed off correctly. You can find licensed gasfitters in your area at tradedirectory.co.nz.
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