Govt to declare LPG production mandatory at all gas fields

ISLAMABAD: The Petroleum Division was in the process of finalising a new Liquefied Petroleum Gas (LPG) policy, under which production of the commodity would be mandatory from all existing natural gas producing fields, a senior official privy to the petroleum sector developments told APP.

The decision has been taken to meet the increasing demand and ensure LPG availability at controlled price throughout the year especially during the winter season. A new LPG policy has almost been finalised, which would be announced in the coming weeks.

Under this policy, the LPG production would be mandatory from all operational gas fields across the country to meet its increased demand and curtail the import, the official said.

He said the production from LPGs existing plants, installed at different fields, would be streamlined; however, a period of one to two years would be required to set up new plants at the fields where the facility was not available.

“We have the potential to increase the LPG production at domestic level and bring down its import,” he said, adding that a new pricing mechanism was being introduced to ensure uninterrupted supply of LPG at controlled price throughout the year.

In future, he said, there would be an open and transparent auction at the announced date for the locally produced LPG by Oil and Gas Regulatory Authority (OGRA) and Pakistan Petroleum Limited, abolishing the existing quota system. It would be binding on the successful bidders to sell the commodity at prescribed rate throughout a year in every nook and corner of the country.