LPG production to be made mandatory at gas fields

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The Petroleum Division is in the process of finalizing a new Liquefied Petroleum Gas (LPG) policy, under which the commodity production would be mandatory from all existing natural gas producing fields, to meet the increasing demand and ensure its availability at controlled price throughout the year especially during the winter season.

“A new LPG policy has almost been finalized, which will be announced in the coming weeks. Under this policy, the LPG production will be mandatory from all operational gas fields across the country to meet its increased demand and curtail the import,” a senior official privy to the petroleum sector developments told APP.

He said the production from LPG’s existing plants, installed at different fields, would be streamlined, however, a period of one to two years would be required to set up new plants at the fields where the facility was not available.

“We have the potential to increase the LPG production at domestic level and bring down its import,” he resolved.

Besides, the official said, a new pricing mechanism was being introduced to ensure uninterrupted supply of the LPG at controlled price throughout the year.

In future, he said, there would be an open and transparent auction at the announced date for the locally produced LPG by Oil and Gas Regulatory Authority and Pakistan Petroleum Limited, abolishing the existing quota system. “There will be binding on the successful bidders to sell the commodity at prescribed rate throughout a year in every nook and corner of the country.”

According to a report compiled by Oil and Gas Regulatory Authority, the LPG consumption stood at around 40,921 Metric Ton (MT) during a 14-month period from April 2018 to May 2019 across the country.

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