ISLAMABAD: Minister for Petroleum and Natural Resources, Khawaja Muhammad Asif directed Oil and Gas Regulatory Authority (OGRA) to rationalize the regulatory frame¬work to facilitate the nascent auto sector LPG usage. The LPG is a clean, efficient and environment friendly fuel with a wide range of applications in com¬mercial, industries and households as a substitute for natural gas. "This fuel can also be used in the automotive sector as economically viable alternative to other hydrocar¬bons," he said while inaugurating a day long second annual LPG Conference and Exhibition here. The Conference and Exhibition was organized by Energy Update and LPG Association of Pakistan. Iqbal Z. Ahmed Chairman LPG Association of Pakistan, Hilal A. Raza Director General H.D.I.P., Naeem Qureshi Managing Editor Energy Update, Mohammad Ali Malik (Progas) Bilal Jabbar, Fasih Ahmed, Faridullah Khan M.D. Enercon, Abbas Bilgrami, Habib Haider, Abbas Kazmi, Owais Mir and Sohail Qureshi addressed on this occasion.

He expressed the confidence that wide spread use of LPG in auto sec¬tor will soften the rude impact of rising prices of petroleum products. The Minister said science deregu¬lation, Pakistan's LPG sector has shown tremendous growth in terms of rising number of LPG producers, importers, LPG marketing companies and LPG distributors. Thanks to deregulation, about US$200 million has been invested across the LPG value chain and given the robust growth dynamics of the sector, more investments are expected to continue, he added. Khawaja Asif said he was also looking forward to additional investments in setting up of dedicat¬ed LPG auto gas stations and LPG production plants which are dor¬mant for the moment, so that the ungasified areas are served in the like manner.

However, it has been noted that LPG availability has been confined to urban centers, despite Government's clear objectives and directives to supply mandatory quota to the Northern hilly areas, AJK, interior Sindh, Balochistan and FATA. He also pointed out that LPG marketing companies are not faith¬fully implementing these policy measures and the regulatory mech¬anism of OGRA is also not pursu¬ing the defaulting LPG marketing companies. The Minister observed that LPG consumer prices are normally not stable due to demand & supply gap and in this connection the focus of our Government will be to realize additional LPG production from the developing gas fields. The local production of LPG can be increased by another 900 metric ton per day if the development of the dormant fields is fast tracked by the concerned exploration and pro¬duction companies. He said mere policy measures, howsoever effective and efficacious cannot achieve the intended out¬come, without being effectively monitored and implemented by reg¬ulator. Therefore, he urged upon OGRA to step up their activities to check the malpractices of decanting, under-filling and cross filling of LPG cylinders to save the life, limb and property of the LPG users. He also asked LPG marketing companies to fulfill their corporate social responsibilities and must concentrate on the economy of scale for earning their profit rather than concentrating on demand man¬agement measures.

He hoped that the deliberations of this conference will go a long way to facilitate the common man in obtaining LPG cylinders at a com¬petitive rate. Director General, Hydrocarbon Development Institute of Pakistan (HDIP), Hilal A Raza speaking on the occasion said that 50 percent urban households are using LPG in neighboring India. In Pakistan, it has become a fuel of choice but it contribute less then a one percent in total energy sup¬plies which can be enhanced up to 3-4 percent. Chairman, LPG Association of Pakistan, Iqbal Z. Ahmed said suc¬cess and failure of this government depends upon success of energy sector. He said the indigenous pro¬duction of LPG is about 1700 met¬ric tones per day and there is potential to produce additional 900 metric tones per day. He said the number of distribu¬tors has reached to 7,000 across the country. In his welcome address, Managing Editor of Energy Update Naeem Qureshi spoke about expanding LPG industry. Later, the Minister was presented memento by the Chairman, LPG Association of Pakistan. The Minister also visited stalls of various companies at the exhibition. He took keen interest in the equip¬ments related to LPG industry.

Saquib Khattak
Media Coordinator