Industry

The LPG Industry in Pakistan

The LPG industry in Pakistan is a developing one. The industry is deregulated so as to encourage private sector investment and allow market forces to determine demand, supply, and pricing decisions. The local production stands at 1400MT per day while the demand hovers between 1600-2000 MT per day. Approximately an additional 500 metric tons of LPG is expected to become available by the end of 2012.
Approximately 84 licensed marketing companies with a distribution network of 6000 plus distributors are spread throughout the country.
LPG Supplies in Pakistan
Currently there are three main sources to provide LPG Supplies. i.e. refineries, gas producing fields and imports.


SUPPLY SOURCES

Refineries

Fields

Attock Refinery

OGDC (Bobi)

National Refinery

OGDC (Dakhni)

Pak Arab (PARCO) Refinery

OGDC (Dhodak)

Bosicar (BYCO) Refinery

OGDC (Kunnar)

 

OPI

 

POL

 

PPL

 

JJVL

 

 

Current LPG producers in Pakistan are JJVL, OGDCL, PPL, PARCO, NRL, PRL, OPI, POL, BYCO and ARL.

Areas-wise demand of LPG in Pakistan
Based on experience of the industry, demand for LPG can be distributed, area wise as under:

  1. Karachi / Sindh                25%
  2. Central Punjab                15%
  3. North Punjab                   20%
  4. AJK                           10%
  5. Khebar Pakhton Khawan 10%
  6. FATE                           10%
  7. Nothern areas                 8%
  8. Baluchistan                    2%

 

Applications of LPG
LPG is a multipurpose fuel and used worldwide as an alternative fuel for various applications; residential, commercial, agribusiness, industrial, and autogas.

Residential

In the absence of natural gas, LPG is the best alternative fuel. LPG can be used for cooking, water heating, space heating and drying. Cooking with other fuels such as wood or kerosene results in pollution, blackening of the area where cooking is carried out, accumulation of soot, and the heat generated is difficult to control. LPG allows the user to control the level of heat and ensures a clean cooking environment.

Commercial
LPG is the preferred fuel for hotels, restaurants, catering companies, schools, and bakeries. LPG offers continuous supply of heat that quickly reaches and is maintained at the desired temperature. Moreover, LPG powered forklifts are cost effective and environment friendly with no reduction in engine power.

Agribusiness

LPG powered burners in the agriculture sector are adjustable, consume less fuel, and provide the optimum amount of heat as required. The most common usage of LPG in agribusiness is Poultry Brooding and Rearing, and Crop Drying. By providing heat faster and at the required rate, LPG saves agribusiness time and money.

Industrial

LPG is widely used in civil engineering, metal industry, ceramic industry, textile industry, and glass industry. Depending on the scale of operation, LPG can be provided in the form of a manifold of cylinders or a bulk tank.

Autogas
Autogas is LPG used specifically for vehicular use. There are over 12 million vehicles worldwide running on Autogas and it is the most widely preferred alternative to petrol/diesel.

Comparison of Autogas to Alternative Fuels
LPG is a major alternative fuel to petrol, diesel, and CNG. A comparison of fuels shows that overall LPG is superior to its substitutes.


Fuel Characteristic

Petrol

Diesel

CNG

LPG

Urban Air Pollution

Moderate to low emissions of hydrocarbons (HC) and oxides of Nitrogen (NOx). Low particle (PM) emissions

High NOx, low HC emissions. High PM emissions relative to other fuels even with reduced sulphur levels. By far the highest adverse impact on public health.

HC (methane) emissions can be high. Moderate to low NOx. Very low PM.

Low Nox and moderate to low HC emissions. Very low PM.

Global Warming (Greenhouse)

Moderate CO2, low methane (CH4) emissions.

Lower CO2, low CH4 and HC. Airborne PM may increase global warming. High NOx levels may result in elevated N20 emissions.

Potentially lowest CO2 of all fuels, but this can be offset by the very high greenhouse impact of methane (CH4) emissions from these engines.

Tailpipe CO2 emissions lie between petrol and diesel. Lifecycle CO2 comparable to diesel, lower than petrol and CNG. Negligible CH4 emissions.

Engine Noise

Low

High

Low

Low

Application

Lowest cost fuel system, so attractive for cars and light commercials.

Complex high pressure fuel system increases cost, but most fuel efficient. Very durable and reliable in heavy duty applications.

High cost and limited range. Preclude use in light duty vehicles and in areas where there is no pipeline gas.

Cost, range and on road performance equivalent to petrol in light duty vehicles. Engines now available for buses and medium trucks. Not constrained to depot-based operations.

Retail Availability

Nationally Available

Nationally Available

Limited

Nationally Available