Government may promote LPG fuelling system for auto sector: policy drafted

The government is likely to promote developing of auto liquefied petroleum gas (LPG) refuelling stations for the auto sector by the LPG marketing companies and existing CNG stations. According to the draft of the upcoming LPG policy 2011, the Oil and Gas Regulatory Authority (Ogra) will prescribe codes and standards for conversion of vehicles to LPG and establishment of LPG re-fuelling stations for the auto sector by LPG oil marketing companies and individual CNG stations.
According to the draft, the Ogra will develop safety standards, rules and procedures in line with the international best practices regulating to the LPG auto sector, and an effective compliance monitoring mechanism will be put in place by the regulator.
"Ogra will publish a list of authorised manufacturers for all LPG equipment including LPG refilling stations, conversion kits, fuel tanks, cylinders, storage tanks, and bowsers. The equipment manufactured by these authorised manufacturers will be monitored for conformance to international standards through strict quality control and quality assurance measures by the certified and accredited pre-qualified inspection agencies" it said.
It further stated "LPG auto gas stations and LPG fitted vehicles will conform to rules framed by Ogra. LPG auto gas stations will strictly ensure that no domestic or commercial LPG cylinders are filled at their site to ensure public safety". To ensure safety throughout the LPG supply chain, LPG storage tanks, cylinders bowsers, and distribution outlets of the licensees will meet the minimum safety standards as laid down in applicable rules.
Decanting of LPG from cylinder to cylinder and cross filling of other LPG marketing companies'' cylinders is prohibited and Ogra shall cancel licences of'' the LPG marketing companies involved in this activity, directly or indirectly. Similarly, unauthorised filling of LPG marketing companies'' cylinders/tanks by other LPG marketing companies will be strictly prohibited.
Stating the objectives of the upcoming LPG policy, the draft added that the policy aims to increase LPG supplies, through indigenously produced and imported product to cater for rapidly increasing demand and stabilise prices that at times are volatile and subject to manipulation. "This will help streamline LPG distribution at competitive prices, especially to LPG-starved areas of the country, and promote healthy competition for growth of LPG market while ensuring minimum safety standards across the LPG supply chain. To achieve this goal, issues regarding LPG production, LPG licensing, safety standards, pricing, distribution in under-developed areas and import of LPG have been addressed in this document". Public sector E&P companies shall exercise their right to set up LPG extraction facilities at gas fields where LPG can he commercially extracted in accordance.
Ogra will issue provisional licences to technically and financially sound applicants/parties for construction of works commensurate with their work programme, for a period of one year. The work programme will ensure that adequate storage, cylinders and logistics infrastructure are invested into within this time frame in line with the marketing plan of the company. Existing licensees will also be required to come up to the requisite level of investment in their infrastructure. Ogra will induct certified and accredited third-party inspection bodies to check/monitor compliance with the terms and conditions of licences. The licences shall be cancelled in case of non-compliance with licensing, terms and conditions.