OGDC to increase LPG production

Oil and Gas Development Company (OGDC) has planned to expand production of liquefied petroleum gas (LPG) in the country to cater to the growing needs of northern areas, urban suburbs and rural areas.
A source in OGDC said here on Friday that the company would invite private sector to install LPG production plants near its eight gas fields in the country.
The decision has been taken keeping in view the government policy to increase production of LPG in the country to provide cheaper fuel to areas where supply of natural gas through pipeline was not available.
This will also help in discouraging tree cutting in these areas for fuel purposes and bring down LPG prices, he added.
The Federal Cabinet in its recent meeting has also allowed, in principle, the utilisation of LPG in transport sector and directed Oil and Gas Regulatory Authority (Ogra) to ensure safety standards.
He said OGDC has a LPG plant at its Bobby gas field, producing 80 tons per day. The plant has a capacity to produce about 120 tons of LPG per day.
He pointed out that OGDC would soon invite tenders from interested parties for the installation of LPG production plants near Qadirpur, Dhodhak, Dakhni, Loti, Pirkoh, Hundi/Sari, Missa Keswal and Sadqal gas fields on built, own and operate (BOO) basis.
The interested companies will be asked to install state-of-the-art LPG plants near these gas fields. They will acquire land at their own to install these plants, he added.
Presently, Parco's Kot Addu Refinery, National Refinery Ltd, Pakistan Refinery Ltd and Jamshoro LPG extraction plant are the major producers of LPG in Pakistan while importers include Fone Gas, Premier Gas, JJVL and SHV.
The local production of LPG has reached about 1,300 to 1,500 tons per day while the consumption is double, especially in winter season, in up country where natural gas is not available.
About 22 companies, including Shell Gas LPG, Caltex Pak, Fone Gas, Premier Gas and Dutch company SHV, are marketing gas in the country. According to estimates, about 500,000 households use LPG in the urban suburbs, northern areas as well as rural areas of Pakistan.