Industry

Rs 18.40 bn investment made in LPG supply infrastructure in FY 2020-21

Karachi, September 21, 2022: During the fiscal year 2020-21, an estimated investment of Rs 18.40 billion has been made in the LPG supply infrastructure whereas total investment in the sector till date is estimated at about Rs 59.38 billion.

This was revealed by the Oil & Gas Regulatory Authority in its annual report for fiscal year 2020-21 and stated that OGRA is playing its vital regulatory role to increase private investment in mid-stream and downstream petroleum industry.  

“Due to increased development and expected expansion of LPG projects within the country, significant investments in LPG supply and distribution infrastructure have been witnessed,” stated the report. 

The report added that OGRA has made noteworthy contribution in national economic progress and created an environment for additional investment especially in LPG storage/filling plants and auto sectorwhich will not only result in creation ofinfrastructure in LPG sector all over the country but will also provide jobs to hundreds of unemployed people.

LPG Regulation

OGRA is empowered to regulate the LPG Sector under OGRA Ordinance 2002 and LPG (Production & Distribution) Rules, 2001 with effect from 15th March, 2003.

The salient regulatory functions of OGRA related to LPG sector are hereunder:

1.   Grant of licences for construction and operation of LPG Storage and Filling Plants, LPG Air Mix Plants, LPG Auto Refueling Stations and Transportation of LPG through Road Bowsers.

2.   Grant of licences for Production/Extraction of LPG from Oil/Gas fields and Refineries.

3.   Grant of registration to LPG Equipment Manufacturing Companies as OGRA’s authorized manufacturers of LPG equipment.

4.   Periodic Inspection of LPG Works and Facilities to ensure their conformity with the laid down standards.

5.   Redressal of consumer complaints.

PERFECT GAS

OGRA has simplified the procedure for grant of LPG licence. The Licence is granted on completion of the requisite formalities completed by the applicants under the LPG Rules, 2001. During FY 2020-21, OGRA has granted the following licences: –

1.   Licences for construction of LPG Storage and Filling plants (30 Nos.)

2.   Licences for operation of LPG Storage and Filling plants (11 Nos.)

3.   Licences for construction of LPG Auto Refueling Stations (05 Nos.)

4.   Licence for operation of LPG Auto Refueling Station (01 No.)

5.   Licence for construction of LPG Production & Storage facility (01 No.)

6.   Licences for Transportation of LPG through Road Bowsers (39 Nos.)

It is pertinent to mention here that OGRA is getting compliance from the LPG Companies relating to the LPG cylinder inventories. As a result, more than “One hundred thousand Brand New Standardized Portable Cylinders” have been added in the Country’s LPG Distribution Network within a short span of one year thereby ensuring public safety.

OGRA has recently initiated the licensing of transportation of LPG through Road Bowsers to ensure that only the compliant bowsers are engaged in road transportation of LPG.

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