Pakistan’s Mecom Gas Pvt Ltd is considering a US$ 20 million initial public offering (IPO) as the LPG distributor looks to expand storage capacity amid growing volatility in the country’s energy market.
The company is in discussions with Arif Habib Limited regarding a potential listing on the Pakistan Stock Exchange.
The proceeds would be used to construct an LPG storage facility with a capacity of 3,000 tons, strengthening the company’s ability to manage supply disruptions and price fluctuations.
The planned investment comes at a time when Pakistan’s energy sector is facing renewed pressure from rising global fuel prices and geopolitical tensions in the Middle East. The country remains heavily dependent on imported oil and gas, leaving it vulnerable to supply shocks and external price movements.
Mecom Gas Chief Executive Officer Kamran Afzal said LPG prices have doubled over the past six months, highlighting the growing challenges facing the sector. He noted that the company’s expansion plans have been accelerated by recent market disruptions, which have exposed the need for larger fuel reserves.
Industry participants have long argued that Pakistan’s LPG storage infrastructure remains inadequate for a country that relies significantly on imported energy. Greater storage capacity would allow companies to build inventories during periods of stable supply and reduce exposure to sudden price spikes.
The proposed 3,000-ton facility would help Mecom strengthen its distribution network while improving supply reliability for consumers.
According to the company’s management, Pakistan’s LPG storage capacity needs to be more than double to provide adequate reserves and improve market stability.
The announcement also comes as Pakistan’s import bill remains under pressure. The country’s current account returned to deficit in April after higher imports, particularly energy imports, offset gains recorded earlier in the fiscal year.
