LPG cylinders: SNGPL completes homework for supply to tail-end consumers

ISLAMABAD: The Sui Northern Gas Pipelines Limited (SNGPL) has completed the homework for providing Liquefied Petroleum Gas (LPG) cylinders to tail-end consumers who often complain of low gas pressure during winter months.

An official of the SNGPL told Business Recorder that due to higher LNG prices internationally, the government could not secure any spot purchase for winter; therefore, to meet the gas demand in winter, LPG cylinders will be delivered.

The gas distribution company, in a notice to the Pakistan Stock Exchange (PSX), said that in view of potential gas shortfall in the forthcoming winter, the Ministry of Energy (Petroleum Division) has advised to explore all possible options to meet the energy needs of consumers, including supplying LPG cylinders.

The Board of Directors of SNGPL in their meeting on September 28, 2022, has approved the project of LPG distribution with 100,000 cylinders, read the notice. The SNGPL informed that the estimated initial investment for the said venture is up to Rs1,200 million.

The SNGPL covers seven million consumers in Punjab and Khyber Pakhtunkhwa, the majority of them are domestic ones.

Around 61 per cent of the LPG demand is met through local production, whereas, the rest is imported. LPG share in country’s primary energy supplies is 1.3 per cent. The current size of LPG market is around 1,292,539 MT per annum which is 12.46 per cent higher as compared to last year 1,149,352 MT per annum.

Copyright Business Recorder, 2022