September 29, 2020

LPG Production Declared Mandatory For All Operational Natural Gas Facilities

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The Petroleum Division will be implementing a policy in the coming weeks, which would make it mandatory for all operational natural gas plants to also install a Liquefied Petroleum Gas (LPG) gas plant to produce LPG locally. This policy was drafted to reduce Pakistan’s dependence on imported fuel and reduce the cost of LPG. The officials said that this would enable a stable supply of LPG at a prescribed rate, especially in the winter season. The production of LPG would be mandatory for all-natural gas plants who have the LPG facility already installed, but for plants where LPG production facility is not in place, it will take a further 1 or 2 years to install the LPG plants.

The officials further said that under the new policy a new mechanism for the pricing of LPG would be formed, which would ensure a cheap and stable supply of LPG throughout the year. He further added that in future there would be an open auction at an announced date for the locally produced LPG by OGRA and Pakistan petroleum Limited, abolishing the quota system.

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