The Oil and Gas Regulatory Authority (OGRA) has distributed permits for constructing more than 150 liquefied Petroleum Gas (LPG) auto refueling stations.
This was revealed by OGRA official on Thursday, However, All Pakistan CNG Association (APCNGA) central Chairman, Ghayas Paracha said that CNG station owners are not interested in building LPG auto refueling stations—The News Reported.
The Chairman Paracha said, “LPG refueling stations are a completely different business which requires entirely different infrastructure, this could take us in another business landscape where you might have to struggle a lot, therefore, we do not wish to switch to LPG from CNG despite having supply issues with CNG.
By the end of the last financial year in June, in Pakistan, there were 129 LPG marketing entities and 13 LPG producers they had over 4,000 authorized distributors.
The central chairman said currently, there are only 10 LPG auto refueling stations across the country, the government now permits 150 more to be added in the network. The licenses were granted after completing all the requirements and verification processes for the construction of sites, third-party inspectors conducted all the regulations required.
Mr. Paracha also said that LPG is not safe to use in vehicles in the country due to lack of knowledge, rules and safety standards. According to the ministry of Energy, the government is planning to launch LPG stations in order to weed out CNG stations from the country.
LPG at the moment constitutes 0.7 percent of the total primary energy supply in Pakistan and its present size of the market is around 1.21 million tons per annum. Majorly LPG is utilized to meet the domestic fuel needs of the population and especially in localities like rural areas and the mountainous terrains where natural gas supply is not available.
The official said “OGRA anticipates a significant growth of LPG auto refueling stations in near future. The LPG companies entitled by their memorandum and article of association are applying for a number of LPG storage and filling plants, LPG refueling stations and LPG storage facilities at the port in light of LPG Policy and Regulatory Framework.”