Gas is often purchased as a line item. Price per cylinder, price per delivery, price per contract. On the surface, this makes gas appear straightforward to compare and easy to optimise. In reality, this approach hides the true cost of supply.
The headline price of gas rarely reflects what laboratories and facilities actually pay over time. Cylinder based supply carries a range of indirect costs that accumulate quietly and persistently across daily operations.
Labour is one of the first hidden factors. Time spent receiving deliveries, moving cylinders, performing changeovers, checking inventory, and managing storage conditions rarely appears in procurement calculations. Yet these activities consume skilled time that could be directed toward higher value work.
Downtime is another cost that is often underestimated. Interruptions caused by empty cylinders, pressure drops, or delayed deliveries disrupt workflows and extend analysis timelines. Even brief stoppages can lead to repeat testing, recalibration, or lost production windows. These costs are real, but they are rarely attributed back to gas supply decisions.
Compliance and safety also carry financial implications. Cylinder storage requires space, safety measures, inspections, and documentation. Each additional cylinder increases handling risk and regulatory exposure. Over time, these requirements add complexity and operational overhead that extend well beyond the price of the gas itself.
There is also the cost of inefficiency. Cylinder based systems deliver gas in fixed quantities, regardless of actual demand. Excess gas is vented or returned. Energy is spent transporting, storing, and handling product that may never be fully used. These inefficiencies increase operating cost while adding no value.
Total cost of ownership looks beyond purchase price and considers the full lifecycle of supply. It accounts for labour, downtime, risk, compliance, waste, and long term predictability. When viewed through this lens, low cost gas often proves expensive.
On site gas generation changes this equation. Gas is produced only when required. Supply is continuous rather than episodic. Handling and storage are reduced. Labour requirements decrease. Downtime risk is minimised. Costs become predictable rather than variable.
The most cost effective systems are not always the cheapest to buy. They are the ones that reduce friction, eliminate inefficiency, and support stable operation over time. When infrastructure is designed for reliability, total cost decreases even as performance improves.
Understanding the true cost of gas supply allows facilities to make decisions based on long term value rather than short term pricing. In doing so, they move from cost cutting to cost control.
To explore how on site gas generation can reduce total cost of ownership while improving reliability, visit