ISLAMABAD - The Oil and Gas Regulatory Authority (OGRA) has opposed the plan to install LPG stations in the country and proposed the Ministry Of Petroleum And Natural Resources to ensure availability of LPG first before initializing its import.
Sources further told that OGRA has proposed the government to ensure availability of thirty to forty thousand tons LPG in the pipelines every time. Presence of such quantity of LPG would facilitate to meet the requirements in the country.
Officials added that Asia is already the largest LPG consuming market on the basis of the market size and its potential and LPG demand of the area is expected to increase from 55million tons in 2000 upto 85million tons by the end of this year.
Especially, the modernization of energy demand environment is expected to cause a big increase of LPG demand in household and commercial part.
The government has already taken steps to reverse its CNG policy in an effort to bring CNG prices at par with POL prices and to replace it with LPG,” said the official, adding that a ban had already been imposed on the import of CNG kits and cylinders which was badly damaging investment.
According to the government estimates during the last decade, gas production had been increased by only 7 percent, while its consumption increased by 40 percent per annum. CNG sector is identified as the major user of gas whose consumption has increased by 39 percent per annum during the last decade.
Sources told OGRA has started screening of licenses of the companies, which have applied for installation of LPG stations in the country. Autonomous body is considering the applications of only those applicants who already have sufficient quantity of gas. OGRA officials further informed that authority is verifying the documents of those foreign companies which are interested in the LPG investment in the country from their relevant embassies.
However, official sources further revealed that Ministry of petroleum and natural resources is attempting to pace up the project of LPG import, which might have unpleasant affects on the country.