LPG sector attracts Rs11b investment
By Asad Cheema

ISLAMABAD—The Liquified Petroleum Gas (LPG) sector has so far attracted an investment of Rs.11 billion as result of government’s prudent policies and efficient regulation. According to the Oil and Gas Regulatory Authority (OGRA), the investment is expected to increase substantially in future, with introduction of LPG in the automotive sector.
At the end of last financial year, there were 10 LPG producing companies and 60 LPG marketing companies operating in the country while 61 licenses for the construction of storage and filling facilities have been issued.
The Authority issued 13 licenses for marketing of LPG, while 29 licenses have been issued for construction of LPG storage and filling facilities at various locations in the country last year.
The Authority, which played an impressive role in attracting investment in the LPG supply and distribution infrastructures, has also notified the regulatory framework for use of LPG in automotive sector aster approval by the Federal Government.
According to Regulatory Framework, only licensed LPG marketing companies and Oil Marketing Companies (OMCs) have been allowed to set up LPG auto refueling stations.
A separate license for each station shall be required while the LPG auto refueling stations shall meet international safety and technical standards. The auto refueling shall be located on a plot measuring lot less than 10,000 square feet located on roads or highways with minimum 60 feet width. Only brand new equipments duly authorized by the OGRA in accordance with the LPG Policy shall be installed at the refueling stations.
Similarly, conversion kits and cylinders, duly approved by the Authority, according to the LPG Policy shall be installed and each licensee shall certify the same.
The Authority shall monitor the safety standards and other operational requirements to ensure public safety on regular basis.
At the end of last financial year, there were 10 LPG producing companies and 60 LPG marketing companies operating in the country while 61 licenses for the construction of storage and filling facilities have been issued.