Key Takeaway
Natural gas costs roughly $1.00–$1.50 per therm compared to propane at $1.80–$2.50 per gallon (propane delivers about 91,500 BTU per gallon versus 100,000 BTU per therm of natural gas). Atmos Energy provides natural gas service to most of Odessa, Midland, and surrounding Permian Basin cities, while rural properties and areas outside the gas grid rely on propane delivery. Converting appliances between fuels costs $150–$500 per unit and must be done by a licensed gas plumber. Both fuels are safe when properly installed and maintained, but they have different leak behaviors and detection requirements.
Natural Gas and Propane in the Permian Basin
The Permian Basin sits on top of one of the largest natural gas and oil reserves in the world, yet not every home in the region has access to piped natural gas. Whether you are building a new home, renovating an older one, or simply wondering if you are using the most cost-effective fuel, the choice between natural gas and propane affects your monthly utility costs, appliance selection, and safety planning. Understanding the real differences between these two fuels—particularly as they apply to West Texas conditions—helps you make an informed decision.
At Resolv Services (TX Plumbing License #42668), we install, repair, and convert gas lines for both natural gas and propane systems across Odessa, Midland, Andrews, Big Spring, Monahans, Pecos, Fort Stockton, Alpine, Kermit, Stanton, Gardendale, and the surrounding Permian Basin. Owner Alexandro Ramirez and our licensed technicians work with both fuel types daily and can advise you on the best option for your specific situation. Call (432) 290-8511 for a consultation.
This guide breaks down the cost comparison, availability, appliance differences, conversion process, and safety considerations so you can evaluate natural gas versus propane for your home with real numbers and local context.
Cost Comparison: Natural Gas vs. Propane Per BTU
The most common question homeowners ask is which fuel is cheaper. The answer requires comparing cost per BTU rather than cost per unit, because natural gas is measured in therms (or cubic feet) and propane is measured in gallons. One therm of natural gas delivers 100,000 BTU. One gallon of propane delivers approximately 91,500 BTU. When you normalize the costs to the same energy output, natural gas is consistently less expensive in the Permian Basin.
As of early 2026, Atmos Energy residential natural gas rates in Odessa average $1.00–$1.50 per therm depending on seasonal adjustments and usage tiers. Propane delivery prices in the Permian Basin range from $1.80–$2.50 per gallon for residential customers, with prices varying by supplier, tank size, and delivery schedule. Some suppliers offer locked annual pricing, while others charge market rates that fluctuate with wholesale propane costs.
To compare directly: $1.25 per therm of natural gas delivers 100,000 BTU, which works out to approximately $12.50 per million BTU. Propane at $2.10 per gallon delivers 91,500 BTU per gallon, which works out to approximately $22.95 per million BTU. That means propane costs roughly 80–85 percent more than natural gas per unit of energy in this market. For a typical Odessa home using 60–80 therms of natural gas per month during winter for heating, water heating, and cooking, switching to propane at equivalent usage would add $50–$80 per month to fuel costs during the heating season.
However, cost alone does not tell the whole story. Propane appliances often have higher efficiency ratings for certain applications, propane burns hotter per cubic foot than natural gas, and the total cost equation changes significantly when you factor in the infrastructure costs of connecting to the natural gas grid versus installing a propane tank. If your property is more than a few hundred feet from an existing gas main, the cost of extending the gas line can be $5,000–$15,000 or more, which changes the payback calculation entirely.
Availability: Atmos Energy vs. Propane Delivery in the Permian Basin
Atmos Energy is the primary natural gas utility serving the Permian Basin. Their distribution network covers Odessa, Midland, Andrews, Big Spring, Monahans, Pecos, and most incorporated cities in the region. If your home is within city limits and was built on a street with an existing gas main, you almost certainly have access to piped natural gas. You can verify availability by calling Atmos Energy or checking their service map online.
Properties outside the natural gas grid—including rural homes, ranches, acreage properties in unincorporated Ector or Midland County, and some newer subdivisions that were built before gas mains were extended—rely on propane delivered by tank truck. Local propane suppliers serving the Permian Basin include Targa Propane, Amerigas, Suburban Propane, and several independent dealers. Most offer automatic delivery schedules based on estimated usage, and pricing varies by tank size, contract terms, and whether you own or lease the tank.
Propane tanks come in several sizes for residential use. A 120-gallon tank suits homes that use propane only for a cooktop or gas logs. A 250-gallon tank handles a home with gas heating, water heating, and cooking. A 500-gallon tank is appropriate for larger homes or properties with additional gas appliances such as pool heaters, outdoor kitchens, or workshops. Tanks can be above-ground or buried, with buried tanks costing $500–$1,500 more to install due to excavation. Tank rental from propane companies runs $50–$150 per year, while purchasing a tank outright costs $500–$2,500 depending on size.
For homeowners in Alpine, Fort Davis, and the Davis Mountains area, altitude is an additional consideration. At elevations above 4,000 feet, gas appliances require high-altitude orifices and adjusted combustion air calculations. Both natural gas and propane appliances need these modifications, but propane systems in the Alpine area are far more common because natural gas distribution is limited in the mountain communities. Resolv Services handles high-altitude gas installations and can ensure your appliances are properly configured for your elevation. Call (432) 290-8511.
Appliance Differences and Conversion Requirements
Natural gas and propane are not interchangeable without modification. Every gas appliance—furnace, water heater, range, dryer, fireplace—is factory-configured for one fuel type or the other. The key difference is the size of the gas orifice: natural gas operates at lower pressure (typically 7 inches of water column) and uses a larger orifice, while propane operates at higher pressure (typically 11 inches of water column) and uses a smaller orifice. Using the wrong fuel without converting the appliance creates a serious safety hazard, including incomplete combustion, carbon monoxide production, and potential fire or explosion.
Most major appliance brands—including Rheem, AO Smith, Rinnai, Lennox, and Frigidaire—sell their products in both natural gas and propane versions or include a conversion kit in the box. A conversion kit typically includes new orifices for the burners, a new regulator spring or adjustment, and updated rating labels. Some appliances, particularly older models and certain high-efficiency units, cannot be converted and must be replaced outright if you switch fuels.
The cost to convert an appliance from natural gas to propane (or vice versa) ranges from $150–$500 per appliance when done by a licensed gas plumber. A simple range conversion with a manufacturer-supplied kit runs $150–$250. A furnace conversion is more involved at $300–$500, because it requires changing the burner orifices, adjusting the gas valve pressure setting, and verifying combustion efficiency with a flue gas analyzer. Water heater conversions cost $200–$400. In all cases, the conversion must be performed by a licensed professional—this is not a DIY project. Texas state law requires a licensed plumber with a gas endorsement for any gas line or gas appliance work.
If you are converting your entire home from propane to natural gas (or the reverse), expect to pay $800–$2,500 for appliance conversions alone, plus the cost of new gas lines if the existing piping is not compatible. Propane systems typically use smaller diameter pipe because propane is delivered at higher pressure, so converting from propane to natural gas may require upsizing some gas lines to maintain adequate flow at the lower operating pressure. Resolv Services provides free estimates for whole-home fuel conversions. Call (432) 290-8511.
| Factor | Natural Gas | Propane |
|---|---|---|
| Cost per Million BTU | $10–$15 | $20–$27 |
| Energy per Unit | 100,000 BTU/therm | 91,500 BTU/gallon |
| Delivery Method | Piped (Atmos Energy) | Tank delivery by truck |
| Operating Pressure | 7" water column | 11" water column |
| Storage Required | None (continuous supply) | On-site tank (120–500 gal) |
| Availability in Odessa | Most city properties | Universal (any location) |
| Availability in Rural Areas | Limited to gas mains | Available everywhere |
| Appliance Conversion Cost | $150–$500 per unit | $150–$500 per unit |
| Carbon Monoxide Risk | Yes (incomplete combustion) | Yes (incomplete combustion) |
| Leak Detection | Mercaptan odorant added | Mercaptan odorant added |
| Environmental Impact | Cleaner burning | Slightly higher CO2 per BTU |
| Flame Temperature | ~1,960°F | ~2,516°F |
Safety Considerations for Both Fuels
Both natural gas and propane are safe when systems are properly installed, maintained, and inspected by licensed professionals. However, the two fuels behave differently in a leak scenario, and understanding these differences is critical for homeowner safety.
Natural gas is lighter than air—its specific gravity is approximately 0.60 compared to air at 1.00. When natural gas leaks, it rises and dissipates into the atmosphere relatively quickly, especially in well-ventilated spaces. This means natural gas leaks are less likely to accumulate in dangerous concentrations at ground level, but they can pool in attics, upper floors, and enclosed ceiling cavities if ventilation is poor.
Propane is heavier than air—its specific gravity is approximately 1.52. When propane leaks, it sinks to the lowest point in the area: basements (rare in West Texas), crawl spaces, floor-level cabinets, and low-lying exterior areas around the tank. This makes propane leaks potentially more dangerous because the gas concentrates in occupied spaces rather than rising away. A propane leak in an enclosed room can reach explosive concentrations at breathing level while natural gas would be dissipating toward the ceiling.
Both fuels are odorless in their natural state. Gas companies and propane suppliers add mercaptan, a sulfur-based compound that smells like rotten eggs, to make leaks detectable by smell. If you smell gas in your home—whether natural gas or propane—do not turn on or off any electrical switches, do not use your phone inside the house, do not light any flames, and leave the building immediately. Call 911 and your gas company (Atmos Energy at 866-322-8667 for natural gas, or your propane supplier) from outside the home.
Carbon monoxide is a risk with both fuels. Any gas appliance that is improperly adjusted, has a cracked heat exchanger, or operates with insufficient combustion air can produce carbon monoxide. Install CO detectors on every level of your home and near sleeping areas regardless of which fuel you use. Texas does not require CO detectors in all homes by state law, but the National Fire Protection Association and every fire department in the Permian Basin strongly recommend them. At Resolv Services, we include combustion safety testing with every gas appliance installation and repair. Our technicians verify proper gas pressure, check for CO production, and ensure adequate combustion air supply. Call (432) 290-8511 for gas safety inspections.
Which Fuel Is Best for Your Situation?
The best fuel choice depends on your property's location, your current infrastructure, and your budget priorities. For homes within the Atmos Energy service area with an existing natural gas meter, natural gas is almost always the more economical choice. You benefit from lower fuel costs, no storage tank to maintain, continuous supply without delivery scheduling, and no risk of running out during a cold snap. The infrastructure is already in place, so the only cost is running gas lines within the home to your appliances.
For rural properties outside the natural gas grid, propane is the practical choice. The alternatives—extending a gas main at $5,000–$15,000 or more, or relying entirely on electric appliances—are usually less cost-effective than a propane system. Propane provides the cooking performance, heating efficiency, and hot water recovery that gas-fuel homeowners appreciate, and modern propane appliances are highly efficient. A 95-percent AFUE propane furnace or a propane tankless water heater with a 0.96 energy factor delivers excellent performance.
For new construction in the Permian Basin, we recommend connecting to natural gas if the gas main is within 100 feet of the property line. Beyond that distance, run a cost analysis comparing the gas main extension cost against the long-term savings of natural gas versus propane. In many cases, the breakeven point is 7–12 years. If you plan to own the home long-term, the gas connection is worth the investment. If you may sell within 5–7 years, propane with a purchased (not leased) tank may be the better financial decision.
Homeowners in Alpine, Fort Stockton, and the Davis Mountains should factor altitude into their decision. At elevations above 4,000 feet, gas appliances lose approximately 4 percent of their rated capacity for every 1,000 feet above sea level. A furnace rated at 80,000 BTU at sea level delivers roughly 67,000–70,000 BTU at Alpine's 4,480-foot elevation. This affects sizing calculations for both natural gas and propane appliances, but it is particularly relevant for heating systems that must handle the colder winter temperatures at higher elevations. Resolv Services performs altitude-adjusted load calculations for all gas installations in our higher-elevation service areas.
Whatever fuel you choose, the installation must be performed by a plumber licensed through the Texas State Board of Plumbing Examiners with gas line endorsement. Gas line work by unlicensed individuals is illegal in Texas and creates serious safety and insurance liability. Resolv Services LLC holds TX Plumbing License #42668 and is fully insured for residential and commercial gas work. Call (432) 290-8511 to discuss your natural gas or propane installation needs.