Govt. Sets Target To Produce 753,051tons LPG, Import 317,263 Tons In Current FY

ISLAMABAD, (UrduPoint / Pakistan Point News - 10th Jul, 2020 ) :The government has set the target of producing 753,051 tons Liquefied Petroleum Gas (LPG) through indigenous means and will import 317,263 tons during the current fiscal year to meet the country's ever-increasing energy needs.

In the year 2019-20, the commodity's production stood at 784,200 tons against the target of 820,000 tons and the import remained 272,018 tons against the target of 300,000 tons, posting 95.63 percent and 90.67 percent achievement respectively, according to an official document.

The current size of LPG market is around 1,061,447 Metric Ton (MT) per annum, while the commodity supply during the nine-month period stood at 739,785 MT. Around 76 percent of the LPG consumed is met through local production, whereas the rest is imported.

"Refineries, gas producing fields in Pakistan and imports are three main sources of LPG supply in the country." The LPG sector has attracted approximately Rs3.72 billion investment in supply and distribution infrastructure during first nine months (July-March) of the current fiscal year, which showed investors' confidence in business friendly policies introduced by the government.

During the July-March period, Oil and Gas Regulatory Authority (OGRA) has issued around 63 licences of different nature for promotion of Liquefied Petroleum Gas (LPG) industry in the country, including one operational licence of LPG storage terminal, three for setting up LPG air-mix plants, 35 for construction of LPG storage & filling plants and 18 for operation of LPG storage & filling plants.

Besides, it granted three licences for construction of LPG auto refueling stations and three operational permits for LPG auto refueling stations.

Currently, as many as 11 LPG producers and 200 LPG marketing companies are operating in the country, with more than 7,000 authorized LPG distributors.

OGRA has simplified the procedure for grant of LPG licence, which is granted on fast- track basis once the requirements are fulfilled.

�Till March 2020, as many as 52 LPG equipment manufacturing companies were registered with the authority.