Chairman Oil & Gas Regulatory Authority (OGRA) Masroor Khan said that the regulator is exploring plans to develop liquefied petroleum gas (LPG) refrigerant terminals with a 40,000-ton capacity in Karachi.
He shared this while visiting the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). According to the OGRA Chairman, the new terminals need significant funding and will be reliant on investor interest in the LPG industry.
He added that OGRA will authorize 2,000 new LPG tank trucks and has begun giving licenses for them.
Chairman OGRA said the field of new LPG cylinders was in high demand, noting that 2.8 million additional cylinders had been introduced in recent years and that more would be needed to meet national demand.
Khan claimed that the project would cost $160 million and those who wish to expand their business. He added that OGRA and FPCCI have agreed to form a working group to develop investment potential in this part of the industry.
He noted that the country now consumes 5,000 tons of LPG, accounting for about 1.3 percent of the entire national energy mix. This share is expected to rise to 5 percent in the next eight years, he added. He remarked that a new LPG policy will be implemented soon.
Chairman OGRA stated that Engro Corporation Limited and Sui Southern Gas Company Limited operate minor terminals at Karachi port that can accept LPG vessels with a capacity of 3,500 tons. In Gwadar, there is also a minor terminal.
The convener of FPCCI’s standing committee on LPG Muhammad Ali Haider emphasised maintaining safety standards to protect consumers and their property. He shared concerns over the absence of stringent rules in the LPG industry and advocated for fast action against wrongdoers.