LPG INDUSTRY IN PAKISTAN
LPG is an alternate fuel basically used in Pakistan for domestic and commercial cooking fuel. It is also used in Auto, as Industrial fuel, in Power Generation and for any other energy generating equipment.
Domestic Suppliers in Pakistan
LPG is produced and supplied in Pakistan by the Refineries which produce LPG as its bye product and by the Oil and Gas Exploration Companies, which produce LPG at its well heads. It is also extracted from the Natural Gas at the time purification of Natural Gas.
Its main producers and suppliers in Pakistan are
Pak Arab Refinery Company Ltd
Pakistan Refinery Ltd
National Refinery Ltd
BYCO Refinery Ltd
Pakistan Petroleum Ltd
Major Importers of LPG in Pakistan
Apart from domestic LPG, Pakistan also needs to import LPG to meet its total consumption. Major foreign suppliers of LPG are from Iran, and it is exported through Land route via Taftan border and through Sea.
Major Importers in Pakistan are
Sui Southern Gas Co Ltd
Total Demand in Pakistan and Local Production
Total annualized demand of LPG in Pakistan is estimated at around 1.4m Tons, of which around 876,000 MT is produced locally, and the balance needs to be imported from neighboring countries. While the local demand of LPG is on increase constantly, its local production is stagnant. So, with every increase in local demand the import would tend to increase.
Demand in winter rises by around 25% due to its use as heating gas in Punjab, NWFP and Gilgit Baltistan. Therefore, its import is increased in Winter and is on a lower side during summer months of March to September.
LPG is a regularized product, and its price is controlled by Oil and Gas Development Authority as per the LPG Policy. It fixes producer price per MT to which is added government levies mainly, (CED and Petroleum Development Levy and GST) and Distribution Margin. However, normally the retail price is much lower than the price announced by OGRA due to competition.
LPG Distribution and Sale
LPG is sold by the Producer and Importers to the LPG Marketing Companies who in turn sells to the Distributors, to their Point of Sale and to the end users. It is prohibited for a manufacturer to sell to another manufacturer and like wise a marketing company can not sell to another marketing company. However, this restriction does not apply to imported LPG. The imported LPG can be sold by the importer to another importer or by one marketing company to another.
Our Distribution Channel
We have more than 500 distributors spread across the entire Pakistan. With this distribution network we cover our supplies from Karachi to Peshawar and to Kashmir region. The LPG is transported through Bowsers mounted on Prime Movers. We have a fleet of around 20 Prime Movers. We have two filling Plants of which one is at Karachi and the other is at Faisalabad. In addition to these two filling Plants, we use third Party Plants for filling and currently we are having agreements with around 10 third party plants across the country. Total available storage capacity at our two location is around 1500 MT and if we add to it the storage available for us at third party plants, this storage capacity would increase to around 2000 MT, which is one of the highest capacity available to any Marketing Company.