With Australia’s energy landscape continuing to evolve, reliability, regional needs and customer expectations in the food and beverage sector are coming into sharper focus. Supagas’s national compliance manager Paul Gordon outlines five key trends shaping the LPG sector in 2026.
For Supagas, an Australian LPG suppliers, 2026 is shaped not by a single policy decision, but by the cumulative impact of regulatory reform, market dynamics and on-the-ground customer realities. According to Paul Gordon, national compliance manager at Supagas, those signals are emerging from government, industry and regional communities alike.
“There’s a lot happening at once,” Gordon said. “We’re seeing policy evolve, networks change and customer expectations rise. The common thread is that people want energy solutions that are practical, dependable and suited to their circumstances – not one-size-fits-all answers.”
Against this backdrop, Supagas is seeing five clear trends emerge that will influence the LPG and gas sector in 2026.
1. LPG recognised as a critical transition energy
As governments and planners confront the limits of rapid electrification, LPG is being recognised as a complementary, stabilising fuel – particularly where reliability and reach remain essential. The Australian government’s Future Gas Strategy confirms that even under net-zero projections, gas will still be required through to at least 2050 to support system reliability and firm renewable generation.
“Electrification relies heavily on transmission lines, and it’s extremely expensive to extend that infrastructure into remote or regional locations,” Gordon said.
“By comparison, LPG already has a distribution model that reaches those customers. Our cylinder delivery vehicles and bulk tankers rely on the road network that’s already there, so you can maintain continuity of supply without waiting years for new grid infrastructure.”
With this in mind, Supagas continues to invest in its national LPG distribution network, ensuring customers can transition at a pace that reflects local infrastructure realities rather than policy timelines.
2. Regional natural gas closures are accelerating change
In regional Australia, energy transitions are increasingly being driven by infrastructure decisions rather than long-term planning. In August 2025, an energy supplier announced plans to shut down gas supply to 10 regional Victorian towns by 2026, affecting more than 1,100 customers.
“For many regional customers, the transition isn’t optional – it’s happening to them,” Gordon said.
“The challenge is making sure people have access to alternatives that are safe, compliant and practical, and that they’re not left to navigate the change alone.”
Supagas is stepping up to the challenge by working directly with affected communities and customers, providing clear guidance on conversion to LPG, compliance requirements and safe installation – reducing disruption while maintaining essential services such as heating, cooking and hot water.
3. Market volatility and transparency are reshaping buyer behaviour
Volatility continues to shape Australia’s gas market, influencing how customers think about risk, pricing and long-term supply. The ACCC’s December 2025 interim gas inquiry report highlights ongoing price fluctuations and transparency concerns in domestic gas markets.
“When volatility becomes the norm, customers start looking beyond price alone,” Gordon said. “They want suppliers who communicate clearly, respond quickly and can help them manage uncertainty rather than add to it.”
Supagas is addressing this by maintaining supply arrangements and prioritising service responsiveness – particularly for commercial and industrial customers seeking greater predictability.
4. Tech-enabled visibility is becoming a baseline expectation
As supply chains become more complex, customers are expecting more visibility across delivery, compliance and performance.
“It’s a customer expectation now,” Gordon said. “People are used to tracking parcels they’ve purchased online, and they want that same level of transparency with their gas supply – when it’s coming, what’s been delivered, and whether their site is set up correctly and safely.”
In response, Supagas continues to invest in systems that improve visibility and operational agility across its network. Technologies such as telemetry monitoring units on LPG vessels allow the business to better anticipate demand, optimise delivery schedules and reduce the risk of customers running out of gas – particularly in regional and remote locations.
“These tools give us better insight into how customers are actually using gas,” Gordon said. “That means we can plan deliveries more efficiently, respond faster when conditions change, and ultimately provide a more reliable service.”
Supagas is also progressing investment in AI-enabled customer engagement tools designed to improve communication, service responsiveness and issue resolution – supporting customers while reducing friction across the supply chain.
5. Renewable LPG and cleaner fuels are gaining momentum
Looking beyond 2026, renewable LPG and cleaner gaseous fuels are gaining traction as viable pathways to reduce emissions while leveraging existing infrastructure. Industry modelling cited by Gas Energy Australia suggests renewable LPG could progressively replace conventional LPG over time, using the same cylinders and appliances.
“This is where advocacy really matters,” Gordon said. “We’re working closely with industry bodies such as the GEA and government departments to make sure renewable LPG is properly recognised in policy and credit schemes, so the pathway is clear for suppliers and customers alike.”
Practical outcomes, now
For Supagas, the defining question in 2026 is simple – how well can suppliers support customers through change?
“Whether it’s market volatility, infrastructure shifts or new technology, our job is to make energy simpler for our customers,” Gordon said.
“That’s where our Yes We Can mindset comes in – being responsive and doing what it takes to deliver safe, reliable supply when it matters most.”
To find out how Supagas can meet your LPG needs, click here.