LPG INDUSTRY AT A GLANCE

LPG first found its way in Pakistan in early 1970s and quickly became a fuel of choice over firewood, kerosene and bio mass due to its efficiency, portability and the convenience it offered to its consumers.
Though first limited to indigenous production only, LPG’s consumption in the country overtook the local supply over the years. Resultantly, imported LPG regularly began arriving in the country, to meet the peak demand especially during winter season.
At the turn of the Millennium, the Federal Government decided to De-regulate the LPG industry and opened its Production and Distribution to the private sector. In 2002, an independent Oil & Gas Regulatory Authority (OGRA) came into existence and the responsibilities of licensing and regulating LPG was tasked over to the Authority. This Liberalization Policy attracted substantial private investment into storage, transportation and bottling of LPG and the number of OGRA licensed LPG Marketing Companies (LMCs) began to rise exponentially.
Towards end of the year 2006, Pakistan started to run out of the indigenous pipe-lined natural gas and the country drowned into severe energy crisis. Consequently, the use of LPG began to rise sharply and so did the number of LPG players in the country.
Today the number of LMCs has swelled close to 200 and many more are in various stages of making, subject to OGRA’s approval. Keeping pace with the growing requirements of the product, the local Exploration & Production companies have also stepped up their efforts to produce greater quantities of LPG than ever before. Simultaneously, LMCs have increased the quantities imported in the country both via Land and Sea.
Presently, local production of LPG stands at 2,400 MT per day, whereas consumptions stands at around 4000 MT. Though the local LPG still accounts for 70% of the supply through most times of the year yet substantial quantity of LPG is imported around the year both through sea and land routes.