Propane Gas Service Update

Published on August 01, 2023

This is a photo of a propane gas tank.

Clearwater Gas System Is Considering Selling Its Propane Operation

Clearwater Gas has been providing natural gas and propane to residents of Hillsborough, Pinellas and Pasco counties for more than 30 years. After a change in city manager leadership in 2022, we were tasked with reviewing and analyzing all our operational areas for effectiveness and quality.

As a result of this system-wide analysis, the city of Clearwater will consider a potential sale of the city's propane gas operations. Due to a number of challenges with the propane operations, it is our intention to ask the City Council if this service should continue to be provided.

At this time, our recommendation is to sell the propane gas portion of our operations, so that we can focus on natural gas growth and our other related retail services.

The City Council will be asked if they will authorize Clearwater Gas System to put out a Request for Proposal for someone to purchase the propane gas portion of our operation. If they approve, then a Request for Proposal would be issued. If we secure a qualified bidder, this could mean all propane-related operations that we currently perform would be sold off to another company. 

Frequently Asked Questions

What is the status of the possible sale of the propane gas division?

The City Council meeting on Thursday, Aug. 3, 2023, will include discussions regarding the asset evaluation of the propane operations and securing a buyer. Following the discussions, the City Council will make the determination on either moving forward with the process (i.e. the city will issue a bid/proposal advertising the sale of our propane gas operations) or possibly suspend the process.

Residents are invited to attend the meeting, which will be at 6 p.m. Aug. 3, 2023, in Clearwater Council Chambers at the Clearwater Main Library, 100 N. Osceola Ave. The meeting can also be streamed live on YouTube and the city's website.

What led to the decision to consider selling the propane gas division?

After a change in the city of Clearwater's city manager leadership last year, Clearwater Gas System (CGS) was tasked with reviewing and analyzing all operational areas for effectiveness and quality. It was determined our propane operations were not profitable as a stand-alone business unit, resulting in lower overall profits for CGS and financial return to the city.

CGS will ask the City Council if this service should continue to be provided. At this time, Clearwater Gas System's recommendation is to sell the propane gas division to allow the organization to focus primarily on natural gas growth and additional retail services and functions, which include appliance sales, installation/house piping and appliance repair.

How many propane customers could be affected?

Clearwater Gas System has more than 2,045 propane customers in Pinellas and Pasco counties that would be affected by a potential sale. In addition, all propane-related operations that are currently supported by Clearwater Gas System would be sold to another company. Below is a breakdown of our propane customers.

CGS Propane Customers

City/County Residential Commercial % Share
Pinellas County 878 11 43.5%
Pasco County 269 9 13.6%
Tarpon Springs 140 6 7.1%
Dunedin 137 5 6.9%
Clearwater 83 12 4.6%
Largo 88 4 4.5%
Safety Harbor 88 4.3%
Indian Rocks Beach 61 2 3.1%
Seminole 44 2.2%
Oldsmar 36 1.8%
Port Richey 33 1 1.7%
Belleair 30 1.5%
New Port Richey 17 12 1.4%
North Redington Beach 19 0.9%
Madiera Beach 16 0.8%
Redington Shores 16 0.8%
Pinellas Park 9 1 0.5%
Belleair Bluffs 7 0.3%
Redington Beach 6 0.3%
Belleair Beach 4 0.2%
Indian Shores 1 1 0.1%
TOTAL 1,982 64

If the propane system sells, how do I continue receiving propane fuel?

If the city sells the propane system, another propane company will take over all existing propane customers and start providing your fuel needs. This process may take 6 months to one year.

Clearwater Gas System will notify all propane customers prior to the sale in order to keep you informed about the status of the city's propane service and to let you know which company will be your new provider. No other actions are required on the customer’s part at this time.

Will the potential sale of the propane gas division impact employees' jobs?

No. Clearwater Gas System currently has more vacancies than impacted propane positions, which means no Clearwater Gas employees are in jeopardy of losing their jobs.

How can I voice my concern?

You may attend a City Council meeting at the Clearwater Main Library, 100 N. Osceola Ave., or you can email Brian Langille, Gas Executive Director, at