APP – The consumption of Liquefied Petroleum Gas (LPG) stood at around 3,313.47 tons per day in the year 2016-17, which almost 8.4 percent higher as compared to the corresponding year.

 “The LPG supply has increased to 3,029 mt per day in 2016-17 as compared to 2,801 mt per day in 2015-16 and consumption increased to 3,313 mt per day from 3,055 mt per day,” Oil and Gas Regulatory Authority (OGRA) said in its annual report for the year 2016-17.

The total supply of LPG remained 1,105,737 metric ton (mt), accounted for about 0.7 percent of total primary energy supplies in the country, while the size of LPG market stood at 1,209,420 mt, mainly consumed by domestic, commercial and industrial sectors with respective shares of 37, 36 and 27 percent.

It said that around 58 percent of the total LPG consumed was met with local production, whereas the rest was imported, adding that gas producing fields and imports contributed 42 percent each followed by refineries with share of 16 percent.

The LPG plays an important role in the energy mix of Pakistan as it provides a cleaner alternative to biomass and dung based sources, especially in locations where natural gas is not available.

In the current energy scenario, the report said LPG was the most viable alternative in the winters to bridge the demand and supply gap of natural gas network, adding “ the LPG is rapidly becoming significant component of energy mix needs of the country.”

The report said the OGRA had simplified LPG licensing procedures, strengthening the supply infrastructure and promoting an environment conducive to investment and competition.

As of June 30, 2017, the report said there were 13 LPG producers and 129 LPG marketing companies operating in the country, having more than 4,000 authorized distributors.

Besides, there are 10 operational LPG auto refueling stations in different parts of the country, while more than 150 LPG auto refueling stations have been granted licenses for construction.

Moreover, from 2008 onwards, the OGRA had started registration of LPG equipment manufacturing companies for the purpose to eradicate substandard production, sale and use of LPG equipment. “So far, the OGRA has pre-qualified 44 LPG companies as authorized manufacturers of the equipment,” it said.