LPG Marketing Feasibility Full New

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LPG BOTTLING PLANT
AND
AUTO GAS STATION

MARKETING
FEASIBILITY
Mohammad Saeed Awan Mobile # 0323-5252814

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INTRODUCTION
LPG is an abbreviation for "liquefied petroleum gas" and encompasses several products in the hydrocarbon family;
compounds composed of carbon and hydrogen of varying molecular structures. Propane and butane are the two best
known hydrocarbons that are used as fuel in homes, businesses and industries. In the international markets, LPG
predominantly refers to a propane-butane mixture. These mixes may vary in composition from ones that are
predominantly butane to ones which propane is the principal constituent. LPG, whether butane or propane, is unique
in that it can be transported and stored as a liquid but when released it will vaporize and burn as a gas. Also, LPG
can easily be changed from either liquid state or gas state.
No other commercial fuel has these characteristics. Natural gas, for example, cannot be transported in a tank in any
meaningful quantities unless it is either compressed to extremely high pressures or chilled to 259°F (-126°C), at
which point it liquefies.
Even when compressed, it contains only a fraction of the useful energy of the identical volume of liquid state LPG.
When liquefied, LP gases are always at their boiling point at normal temperatures. The slightest drop in pressure or
the least addition of heat will cause them to boil and give off vapor or gas.
This characteristic becomes critical when considering the transfer of liquefied gases from one tank to another.
Being a liquefied gas, LPG must be stored in an enclosed container under pressure. The fluid in a tank is in state of
equilibrium with the gas vapors on top of the liquid providing the tank pressure to keep the liquid from boiling.
The specific gravities of the liquids are just over half that of water.
This means a gallon of propane or butane weighs only half the weight of a gallon of water. Also, propane and butane
have viscosity of about 0.1 centipoise, which make them approximately 10 times thinner than water.
This property makes LPG a difficult fluid to pump since a low viscosity fluid is harder to seal and prevent pump
slippage.
The single significant difference between propane and butane is their boiling points, the temperature at which each
will vaporize. Butane boils at approximately +32°F (0°C), propane at -44°F (-42°C) at atmospheric pressure.
Therefore, at 0°F (-18°C), butane will not vaporize at atmospheric pressure while propane will. Consequently, at any
given temperature, the pressure for a propane vessel will be higher than a butane vessel.
"Vapor Pressure of Liquefied Gases." LPG is inherently a safe fuel. Two prime factors contribute to LPG safety;
one is its narrow limits of flammability, the other is the fact that the container in which it is stored is extremely
strong and airtight. If the confined gas cannot escape it can't burn. LPG has narrower limits of flammability than
most fuels. For propane, the respective limits are 2.4% and 9.6%. This means that when the concentration of LPG in
air is less than about 2.4% or more than 9.6%, the mixture will not support combustion.
LPG is cleaner than petrol and diesel because it is composed of predominantly simple hydrocarbon compounds.
Compared with emissions from vehicles on petrol and diesel, emissions from LPG-driven vehicles contain lower
levels of hydrocarbon compounds, nitrogen oxides, sulphur oxides, air toxics, and particulates.
There is no conclusive evidence to show LPG is more dangerous or less dangerous than petrol or diesel. Human
factor plays an important role in affecting the safety in using LPG.
While capital cost is incurred in switching to LPG, LPG-driven vehicles have a slightly lower maintenance cost than
petrol-driven or diesel-driven vehicles. The running cost of LPG-driven vehicles is lower than petrol-driven and
diesel-driven vehicles in many territories mainly due to lower fuel tax rate on LPG.
The introduction of LPG in most overseas countries was non-mandatory except in the US where federal and state
fleets have to comply with the National Energy Policy Act 1992 to have certain percentage of their new vehicles to

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run on alternative fuels. Overseas governments have used various measures, fiscal and non-fiscal, to create an
environment that encourages the use of automotive LPG.
Overseas governments also try to enhance safety in using LPG by introducing regulations or codes of practice to
regulate the use of LPG vehicles, the design and construction of LPG fuel tanks and to restrict handling of LPG to
trained personnel.
International Automotive LPG Markets
Automotive LPG, the alternative motor fuel
Automotive LPG is the most widely used alternative motor fuel, powering more than 8 million vehicles
worldwide in over 38 countries. Its environmental benefits, practical advantages and overall effectiveness
have already been widely demonstrated and acknowledged.
Automotive LPG is a clean non toxic by-product extracted from natural gas processing and oil refining –
it therefore brings benefits by strengthening Europe's diverse energy mix and independence in terms of
security of energy supply.
LPG fuelled vehicles have low tailpipe emissions of both regulated and non -regulated pollutants : the
main advantage of LPG remains in its C02 benefit over petrol and its NOx and particulate benefits over
diesel -but, the exhaust gases of LPG vehicles show also less smog forming potential and contain less
carcinogenic components like Benzene and aldehydes. Using automotive LPG in road transport can
therefore help reduce total emissions and improve air quality.
Status of the Automotive LPG market in Europe
In Europe, automotive LPG is used by more than 2.6 million LPG vehicles. The main driver for this
success has been the goal of improved air quality performance which has been consistently proven
through a variety of independent formal studies.

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Overview of LPG light vehicles running in Europe as 31st December 2001

(source : AEGPL & WLPGA statistics)
Given the EU's drive to promote alternative fuels, which bring environmental advantages, and the
increased concerns about the need to guarantee security of energy supply in Europe, automotive LPG is
expected to reach 5% share of the European vehicle market by the year 2010.
However, the vast amount of LPG currently used as chemical feedstock in petrochemical processes
(which can easily change to naphta), would allow the operation of 18 to 20 million vehicles in Europe.
This expansion will occur without introducing significant changes in customer usage patterns.
One key reason for the leadership of autogas in Europe, is the density of its distribution network. There
are approximately 13.500 autogas refuelling sites out of a total of 95.000 public retail sites. The number
of autogas refuelling sites can also be increased with relative ease.
This means that autogas is not a theoretical alternative fuel but a highly practical one due to its ease of
handling and wide availability.
A wide choice of LPG vehicles is already available either from OEMs (more than 10 models already
available on the European market) or from importers & certified retrofitters. OEMs vehicles comply with
very stringent emission targets, as well as safety rules, and are subjected to European type-approval.
Retrofitted vehicles have also to comply with increasingly stringent rules, in particular regarding the LPG
equipment installations.
Thus, current LPG vehicles offer drivability and comfort to the end-consumer, at least equal to that of
conventional cars.
Implementation of new technologies for LPG engines (such as E-OBD compliance) and for LPG
components (e.g. polymorphic composite tanks) highlight the desire of the Autogas Industry to put on the
market vehicles designed to the highest standards.

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Automotive sector in Europe
Facts and figures on the Automotive sector
 More than 250 million vehicles on the European roads

 The road transport sector will continue to grow forecast at 310 million by 2020
 With 16 million new passenger car registrations in 2007, Europe accounts for 33% of the
world market
 ACEA members (European car manufacturer’s association)are one of the major employer
in Europe (> 12 million jobs)
Auto gas in Europe today
Top 10 Autogas countries in EU 27 (+Turkey)
Autogas in Europe today
End 2007: More than 24,500 filling stations to support a population of more
than
4.8 million Light duty vehicles in the EU-27
 LPG is EU’s number one alternative fuel
Some information on the German market
Some figures:
2004: population of 30,000 LPG cars 600 Filling Stations

2005: + 35,000 1,000 FS
2006: + 60,000 2,100 FS
2007: + 75,000 3,200 FS
DVFG target: 1,000,000 LPG-fuelled vehicles by 2015

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Today, more and more car manufacturers/importers outlets market
LPG vehicles: Chevrolet, Fiat, Opel, VW, Chrysler, Ford, Kia, Citroën, Subaru, Mazda,
Mitsubishi, Cadillac….
LPG BUSINESS IN PAKISTAN

LPG Market in Pakistan
⇒ More than 40% of LPG is consumed by the Auto sector.

⇒ Roughly 40% is consumed by the Domestic sector.
⇒ Around 10-15% is consumed by the Commercial sector including Hotels.
⇒ The remaining 5% is consumed by the Industrial sector.
• There exists a latent demand of 4000 MT per day vs. current domestic production of 1650 MT
• Marketing Cos. have made windfall profits because of price caps, created artificial shortages and
hindered flow of imports
• The only way to capture this demand is by equating local producer prices to Saudi Aramco as this
would:
LPG BUSINESS OPPORTUNITY IN ALL OVER PAKISTAN

Currently out of 25 million households in Pakistan, 4.3 million are connected to natural gas network and
the rest are relying on LPG and conventional fuels like coal, firewood, kerosene, dung cake etc, which
indicate the strong demand for Liquefied Petroleum Gas (LPG) sector.
Liquefied Petroleum Gas (LPG) is used as fuel for cooking and heating in the northern Pakistan
particularly in Punjab. It is also used as fuel in vehicles particularly taxi and rickshaws. More than 75,000
rickshaws and taxis in Karachi, Lahore and other parts of the country are run on LPG. The demand of
LPG in Karachi is consistent throughout the year and increases during winters in Punjab and Northern
Pakistan.
Although demand of LPG is persistent throughout the year, supply of LPG from producers
(or extractors) to distributors and marketing companies has been limited due to maintenance and
overhauling shutdowns, which often creates shortages. Besides that, LPG producers are also limited in
numbers and LPG marketing companies need to have a quota of gas to be allocated by the producer. This
factor makes LPG business vulnerable in the hands of LPG producers.
LPG (Liquefied Petroleum Gas) is the generic name for commercial propane and commercial butane.
These are hydrocarbon products produced by the oil and gas industries. Commercial Propane
predominantly consists of hydrocarbons containing three carbon atoms, mainly propane (C3H8).
Commercial Butane predominantly consists of hydrocarbons containing four carbon atoms, mainly n- and
iso – butanes (C4H10).
They have the special property of becoming liquid at atmospheric temperature if moderately compressed,
and reverting to gases when the pressure is sufficiently reduced. Advantage is taken of this property to
transport and store these products in the liquid state, in which they are roughly 250 times as dense as they
are when gases.
PROJECT BRIEF
LPG production is a capital intensive business and requires huge investment depending upon the
technology and methodology employed for the extraction and processing of LPG. However, LPG

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Marketing and distribution needs comparatively less investment and can be considered by the Small and
Medium scale investors. The proposed project envisages setting up of LPG marketing and distributing
company (related business in this regards, Auto Gas Station and mini Bottling plant) LPG is generally
known as LPG bottling plant business. LPG marketing and distribution business will setup a bottling
plant with storage tanks and filling dispensers. The business facility will hold a certain quantity of LPG
quota, allocated by one of the LPG producer and this allocated LPG will be supplied to the marketing
company through Bowzer (gas supplying trucks). The company will store this LPG in its storage facility
from where, supply to the sub-distributors will be made. Sub-distributors will bring their cylinders and
get them filled against payment.
 OGRA also approved mini bottling plant and Auto gas station in all over Pakistan.
MARKET ENTRY TIMING

There is a right time for the entry in LPG marketing Business. (Mini Bottling plant and Auto Gas
Stations)
PROPOSED BUSINESS LEGAL STATUS

The legal status of business tends to play an important role in any setup; the proposed LPG Marketing and
Distribution business is assumed to operate on as a private limited company. It is mandatory for an oil or
gas company to register as a private limited company.
PROPOSED LPG BOTTLING/DISTRIBUTION PLANT CAPACITY

The capacity of the proposed LPG storage and distribution facilities would be around
4 M.Tone to 100 M. Tons,
PROJECT COST
Total project cost of the LPG Marketing & Distribution business would be approximately 04 million to
Rs. 45 million.
PROJECT INVESTMENT
A total of Rs. 45 million will be required to setup and operate the proposed LPG Marketing and
Distribution business.
KEY SUCCESS FACTOR & PRACTICAL TIPS

Following are the key success factors in LPG business:
 LPG quota allocation: Most of the existing plants with fully operational facilities are out of work
because of delays in their quota allocation by the LPG producers.
 dealing with the sub-distributors: Sub-distributors play important role in the successful operations
of a LPG Marketing company because they distribute gas among agency holders who further sale
it to the retailers.
 Cheap Irani LPG is available in the market: In such circumstances when cheap Iranian gas is
available, a LPG marketing and distribution company may face a situation where it would be
forced to lift its quota as per agreement from the producer at a higher cost and sell it at lower
price.

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INVESTMENT OPPORTUNITY IN THIS SECTOR

The Government has focused on this sector and has approved “LPG production and distribution policy
2006”
This policy aims at increasing LPG supplies, streamlining its distribution at affordable prices, especially
to LPG starved areas of the country and promoting healthy competition or growth of LPG market while
ensuring minimum safety standards across the Liquefied Petroleum Gas supply chain. To achieve this
goal, issues regarding LPG production, LPG licensing, safety standards, pricing, distribution in under
developed areas and import of LPG have been addressed in this policy.
Prior to the announcement of the above policy, there has been a shortage of LPG particularly during
winter when most of the oil refineries shutdown their LPG production operations for annual maintenance.
Most of the refineries had a practice to close LPG production at the same time which resulted in severe
shortage leading to a consequential increase in price. In order to avoid such situations, now it is
mandatory for the oil refineries to announce a schedule of maintenance ensuring a certain level of LPG
supply to the market.
Besides the oil refineries who produce LPG as a by product, some of the specialized projects i.e. JJVL
(Jamshoro Joint Venture Limited) are focusing on producing only LPG which would help in consistent
supply of LPG to the marketing and distribution companies. It is expected that second facility of JJVL
will commence its operations shortly.
MARKET INFORMATION
CURRENTMARKET
Currently there are 76 LPG marketing and distribution companies operating in Pakistan. Based on the
information provided by the existing players, about 50 of them are operating and rests are waiting for the
allocation of LPG quota. LPG’s use as fuel for cooking and household requirements is most common in
the rural areas of Punjab and NWFP (with a daily demand of about 500 to 800 ton). In the southern region
of the country, Karachi is the biggest consumer of LPG with an approximate daily demand of about 250
to 300 ton. These indicative figures are expressed by the LPG marketing company representatives and
could vary based on specific market circumstances.
MARKET POTENTIAL
Attraction for LPG among the commercial vehicle operators (particularly taxi and auto rickshaw) in
Karachi, Lahore and other large cities & its demand in the rural areas of Punjab which account for about
80% of the total demand makes the LPG sector an attractive business. Following comparison of different
fuels and their respective benefit analysis gives a clear picture of the LPG attractiveness among the
automotive users.
With a view to ensure adequate supplies of LPG in remote, rural and hilly areas of the country, and
to halt deforestation, OGRA has ruled out a policy that all LPG marketing companies receiving LPG
from sources in Punjab and NWFP will be obligated to supply at least 7% of their local LPG in
Northern Areas, 7% in AJK and 6% in FATA.

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AUTO VEHICAL FUEL PRICING COMPARISION
⇒ PRICE COMPARISION OF PETROL, CNG, AND LPG
Petrol drive costs Rs. 4.84 per kilometer as against Rs. 1.78 for L.P.G and Rs.
3.8 for CNG. On an average mileage of 40 kilometers, an average driver using
LPG makes a saving of Rs. 123 per 40 km, and for a CNG operated vehicle,
the saving is Rs 42 40 km,This clearly suggests a cost benefit of LPG and CNG
over petrol hence has a greater attraction for vehicle operators.
⇒ Compare Chart average price of Petrol for the current year 2009; Rs. 58 per liter.
Fuel Cost per liter Mileage per liter Mileage per Rs. 100
LPG 25 14km 60 km
Petrol 58 12km 29 km
Fuel Cost per kilo Mileage per kilo Mileage per Rs. 100
LPG 35 28 km 83 km
CNG 50 13 km 26 km
LOCAL PRODUCTION OF LPG:
At present, the following eight producers are producing around 1600 M. Tons of LPG per day in the
country.
S. No Name of Producers Location/Phone No.

Pakistan Refinery Limited 7-B, Korangi Industrial Zone, Korangi, Karachi.
1
Ph: 021-5062005.
2 National Refinery Ltd. Karachi Ph. No.021-5064981-86
3 Attock Refinery Limited Morgah, Rawalpindi. Ph.No.051-5487041.
Pak-Arab Refinery Ltd Korangi Creek Road, Karachi Ph. 021-
4
(PARCO) 5090100-13
Pakistan Petroleum Limited PIDC House, Dr.Ziauddin Ahmed Road, Ph.
5
021-5682562
Oil & Gas Development OGDCL, Building, Jinnah Avenue, Islamabad
6
Company Ltd. Ph.No.051-9209701
7 Pakistan Oilfields Ltd Morgah, Rawalpindi. Ph.No.051-5487589
Orient Petroleum Inc Hayat Hall, Block No.2, Diplomatic Enclave
8
No.1, G-5, Islamabad Ph. No. 051-2274261
Jamshoro Joint Venture Associated House, House No. 8, Street No.37,
9
Limited F/7-1, Islamabad, Ph. No. 051/2652727-29

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LPG PRODUCED
Following table provides LPG producers with their production sites and quantity of produce during 2006-07:
Producer Name of Field LPG Produced (M.Tons)

OGDCL Dhakni 572
Dhodak 5,750
Kunnar 1,104
Bobi 2,500
Sub Total 9,926
POL Dhulian 287
Meyal 622
Pariwali 1,854
Pindori 2,379
Turkwal 3
Sub Total 5,145
OPI Ratana Mayal 62
Naimat Basal 1,404
Siraj South 0
Umar 0
Sub Total 1,466
PPL Adhi 2,133
PRL 1,192
PARCO 11,332
NRL 1,481
ARL 851
JJVL. 13,438
Grand Total 46,964
Average/day 1,514
LPG UPLIFTED BY MARKETING COMPANIES.

Data on LPG uplifted by the LPG marketing companies during past one year has been provided in the
following table:
Name of the Company LPG Uplifted (M. Tons)

SHV Energy 4,972
Fon Gas 3,350
Wak Limited 3,219
Shell Gas 2,786
Pakistan State Oil 1,719
Caltex 1,984
Eirad Company Limited 2,112
Lub Gas 4,466
Pakistan Oil Fields Limited 6,079
Mehran LPG 2,483
Baluchistan Gas 836
Cap Gas 625
Sun Gas 607
Petrosin Gas 385

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Muhammadi Gas 2,048
Ravi Gas 1,216
Aftab Traders 1,180
Agha Gas 144
Bolan Gas 184
Pro Gas 1,122
Gas Man 118
Power Gas 283
Links International 448
Synergy Gas 717
Baluchistan Minerals 148
Cress LPG 686
Noor LPG 454
Petroleum Gas 424
Tez Gas 656
Soneri Gas 0
Sam Gas 538
Super Star 261
AB Gas 222
Golden Gas 500
Wyne Gas 124
TOTAL. 47,096
LPG DISTRIBUTION PROCESS (SUPPLY CHAIN)
Typical distribution process and supply chain of LPG has been illustrated in the following diagram:
LPG LPG LPG

Production Marketing Distributo LPG Retail
Company & r/ Agent
Distribution Sub-
Company Distributo
r
LPG Retail Sales

Shop
PRODUCTION PROCESS OF LPG
There are three methods for the production of LPG: 1) Extracted from natural gas: 2) By product of
Oil refining process: 3) Produced during Oil refining process.
However, it should be noted that from natural gas, LPG can only be extracted from the points where
propane and butane is mixed with the natural gas in certain quantity. In the following lines
production/extraction process of LPG from natural gas has been elaborated.
The patented AET Process LPG Recovery Unit technology utilizes non-cryogenic absorption to
recover C2+ or C3+ natural gas liquids (LPG’s) from natural gas streams. The absorbed LPG’s in the

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rich solvent from the bottom of the LPG absorber column are fractionated in the solvent regenerator
column which separates LPG’s overhead and lean solvent produced at the bottom. After heat
recuperation, the lean solvent is pre-saturated with absorber overhead gases. The chilled solvent
flows in the top of the absorber column. The separated gas from the presaturator separator forms
the pipeline sales gas.
Depending upon the economics of ethane recovery, the operation of the AET LPG plant can be
switched on-line from ethane plus recovery to propane plus recovery without affecting the propane
recovery levels. The AET LPG plant uses lighter lean oils. For most applications, there are no
solvent make-up requirements. AET can design retrofits for heavy lean oil facilities.
Production Process Flow Diagram
TECHNOLOGY OPTIONS

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For a LPG storage and distribution plant, technology options are important while selecting filling
equipment, storage tanks and filling pumps. For the proposed project following technology options have
been assumed:
Gas filling dispensers = (available in local and foreign market)

Pumps = (available in local and foreign market)
Storage Tanks = (available in Local Market)
PLANT ANDMACHINERY REQUIREMENT
Machinery required for the LPG distribution plant would include the following:
PLANT AND MACHINERY
Required
Machine No. of
S. No
Units
1 Storage Tank- 100 tonne 1
2 Storage Tank - 10 tonne 1
3 Storage Tank - 10 tonne 1
3 Filling Dispenser 4
4 Pumps 2
5 Cylinders(11.8 KG) 500
6 Cylinders (45.4 KG) 200
Support Structure - Piping &
7 as per area
Valves
8 Fire Fighting Equipment 1
There are few local suppliers/ manufacturer of storage Tanks and other related machinery for LPG
distribution setup.
PLANT AND MACHINERY MAINTENANCE
All machines require routine cleaning and maintenance after every three months and an annual service
which costs around 1% to 5% of the total cost depending upon the use of the machine and operator's skill.
We have assumed an average of 3% of the initial plant and machinery cost as the annual maintenance
cost.
LAND AND BUILDING REQUIREMENT
SITE DEVELOPMENT
LPG Plant is sophisticated and requires fool proof system, because Liquefied Petroleum Gas is flammable
and during site development, prescribed instructions for fire extinguishment systems must be complied
with. Qualified Consultant Engineers shall be engaged for preparing structural drawings for LPG site.
LAND REQUIREMENT FOR PLANT
In order to comply with structural standards prescribed by the explosive department and provisioning for
the future expansion in the storage capacity, a minimum of 2 Acre area would be required for the
proposed LPG setup.(mini Bottling plant 10,000 to 20,000 Sft and Auto Gas Station 10,000 Sft) Land
required.

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PROJECT COST
FINANCIAL ANALYSIS FOR BOTTLING PLANT, MINI BOTTLING PLANT, AUTO GAS STATION
WITH LAND COST.
1- 100 M.Tone Capacity Plant Cost, 45 Million (Land required 2 acre)
2- 10 M.Tone Capacity Plant Cost, 04 Million (Land required 20,000 Sft)

(with out civil work)
3- 04 M.Tone Capacity Plant Cost, 02 Million (Land required 10,000 Sft)
(with out civil work)
4- Auto Gas Station 5 M.Tone Cost, 10 Million (Land required 10,000 Sft)
LPG PRODUCTION AND DISTRIBUTION POLICY 2006
INTRODUCTION:
Liquefied Petroleum Gas (LPG) is a colourless, odourless and environment friendly mixture of
hydrocarbons (mainly propane and butane) which is gaseous at normal temperature and pressure, and
liquefiable under reduced temperature or moderate pressure.
A chemical ethyl mercaptan is added to impart a pungent odour for leak detection. Currently about 1600
tons/day LPG is being produced domestically contributing 0.4 % to the total energy supply mix. Because
of its characteristics LPG is fast becoming a fuel of choice in the areas, where natural gas distribution
network is not available. Currently out of 25 million households in Pakistan, 4.3 million are connected to
natural gas network and the rest are relying on LPG and conventional fuels like coal, firewood, kerosene,
dung cake etc.
In June 2000, the Federal Government decided to deregulate the LPG industry with a view to making it
investor friendly, foster healthy competition, improve safety standards, and ensure better consumer
services. Accordingly, in supersession of LPG (Production & Distribution) Rules 1971, LPG (Production
& Distribution) Rules 2001 were formulated under which LPG allocations made by the Ministry of
Petroleum & Natural Resources (MPNR) prior to deregulation were given protection to the extent of
terms of existing agreements between the marketing companies and producers. These Rules also
empower the producers and marketing companies to fix a reasonable producer price for their product and
a retail price respectively. After promulgation of Oil & Gas Regulatory Authority (OGRA) Ordinance,
2002 all LPG regulatory functions as envisaged in LPG (P&D) Rules, 2001 were transferred to OGRA in
March 2003.
OBJECTIVES:
This policy aims at increasing LPG supplies, streamlining its distribution at affordable prices, especially
to LPG starved areas of the country and promoting healthy competition for growth of LPG market while
ensuring minimum safety standards across the LPG supply chain. To achieve this goal, issues regarding
LPG production, LPG licensing, safety standards, pricing, distribution in under developed areas and
import of LPG have been addressed in this document.

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POLICY GUIDELINES
DISPOSAL OF LPG BY PUBLIC SECTOR (E&P) COMPANIES
Public sector E & P companies will out source all LPG production to technically and financially sound
private sector parties holding valid license from OGRA for the purpose through a transparent and
competitive process with a view to making LPG supplies available on commercial and market driven
considerations. The outsourcing process must ensure that no cartels and monopolies are created.
The above process should be completed within six months of the announcement of the policy.
LPG LICENSING,
OGRA will issue provisional licenses to technically and financially sound applicants/ parties for
construction of works commensurate with their work programmed, for a period of one year.
OGRA will induct additional reputable third party inspectors to check/monitor compliance with the terms
and conditions of licenses.
The licenses shall be cancelled in case of non-compliance with licensing terms and conditions.
LPG SAFETY STANDARDS
To ensure safety throughout the LPG supply chain, LPG storage tanks, cylinders bowzers, and
distribution outlets of the licensees will meet the minimum safety standards as laid down in applicable
Rules.
Decanting of LPG from cylinder to cylinder is prohibited and OGRA shall cancel licenses of the LPG
marketing companies involved in this activity directly or indirectly.
OGRA will prescribe codes and standards for conversion of vehicles to LPG and the establishment of
LPG re-fuelling stations for the auto sector by LPG marketing companies.
OGRA will develop safety standards, rules and procedures in line with the international best practices for
regulating the LPG auto sector, and an effective compliance monitoring mechanism will be put in place
by the regulator.
OGRA will publish a list of authorized manufacturers for all LPG equipment including LPG refilling
stations, conversion kits, fuel tanks, cylinders, storage tanks, and bowzers.
LPG fitted vehicles will be obligated to obtain insurance cover to ensure compliance of prescribed
standards for cylinders and conversion kits.
LPG PRICING
The Federal Government will prescribe a formula for LPG producer (base-stock) price within
three months of approval of the policy.
The Federal Government will continue to follow its deregulation policy.
However, to ensure that cartels are not formed for charging a high consumer price of LPG,
OGRA will determine the reasonableness of price keeping in view the import parity price of
LPG, producer price and audited accounts of LPG marketing companies for the last two years.

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OGRA will regularly monitor LPG prices and intervene in exceptional circumstances if the
consumer prices are considered not reasonable.
DISTRIBUTION OF LPG IN UNDER DEVELOPED AREAS

With a view to ensure adequate supplies of LPG in remote, rural and hilly areas of the country, and to halt
deforestation, all LPG marketing companies receiving LPG from sources in Punjab and NWFP will be
obligated to supply at least 7% of their local LPG in Northern Areas, 7% in AJK and 6% in FATA. All
LPG marketing companies receiving LPG from sources in Sind and Balochistan will be obligated to
supply at least 10% of their local LPG in Balochistan province.
OGRA will develop an appropriate mechanism to monitor actual supplies to the above specified areas.
OGRA will initiate action against defaulting LPG marketing companies under the applicable rules and
license conditions which, interalia, may include revocation/cancellation of marketing licenses.
IMPORT AND EXPORT OF LPG

Any party can import LPG after paying applicable government dues. However, for the handling of LPG a
license will be obtained from OGRA.
No party shall export LPG without the prior approval of MPNR.
GENERAL
i) For effective policy formulation all LPG licensees shall furnish requisite information/data to MPNR as
may be required.
ii) OGRA will also apprise the MPNR about the implementation status of this policy on a quarterly basis.
iii) The Federal Government may issue instructions to OGRA from time to time for implementation of
this policy and/or in respect of matters related thereto, as may be considered necessary.
LPG LICENSING
Any company willing to distribute and market Oil and Gas needs to obtain a license from OGRA.
Additionally, license from Explosive department is also required for the proposed LPG marketing and
distribution business. OGRA (Oil & Gas Regulatory Authority) issues provisional licenses to technically
and financially sound applicants/ parties for construction of works commensurate with their work
program, for a period of one year. OGRA inducts reputable third party inspectors to check/monitor
compliance with the terms and conditions of licenses.
The licenses can be cancelled in case of non-compliance with licensing terms and conditions.
PRE-QUALIFICATION FOR LPG STORAGE & FILLING LICENCE

Following requirements are required to be fulfilled for obtaining a license:
 Application on the prescribed proforma in triplicate

 Pay Order / Bank Draft of Rs.100,000/- in favour of Oil & Gas Regulatory Authority, as License
fee (Payable at Islamabad).
 Proof of registration of the Company (Company incorporation certificate).
 Memorandum and Articles of Association.
 Attested copies of ID cards of all Directors.
 Location of the tentative / proposed site.
 Financial Competence Certificate issued by a Bank (original and stamped).
 Last three years’ Audited Reports (not applicable for new companies).

17
 Minimum Work Program:
 Number of storage tanks and capacity of storage tanks.
 Bottling facility capacity.
 Quantity of LPG to be distributed per day or per month.
 Identification of areas where distribution / marketing of LPG is planned
PRE-QUALIFICATION FOR LPG AUTO REFUELING STATION
 Application on the prescribed Performa.

 Layout plan clearly highlighting the exact location of refueling station anddetail of all equipment
and inter distances (vetted by OGRA’s 3rd Party
Inspector, M/s ENAR Petrotech Services (Pvt.) Limited).
 NOC of Environmental Protection Agency.
 NOC from Local/ District Authority.
 Pay Order / Bank Draft of Rs.100,000/- in favour of Oil & Gas Regulatory
Authority, as Licence fee (Payable at Islamabad).
 Attested copy of insurance cover obtained for the proposed refueling station.
OGRA, LAYOUT PLANS FOR INSTALLATION OF LPG AUTOGAS STATIONS
BACKGROUND & INTRODUCTION:
The Federal government in a meeting held on 21st September, 2005 considered the Ministry of Petroleum
and Natural Resources summary and approved in principle the use of LPG in motor vehicles, subject to
Oil and Gas Regulatory Authority (OGRA) providing a regulatory frame work ensuring comprehensive
safety standards. In this regard, the OGRA has devised a regulatory framework to ensure effective
regulation, efficient monitoring and public/consumer safety.
The Regulatory Framework for the use of LPG in the Auto sector has become a part of LPG (Production
and Distribution) Rules 2001 as an Appendix V by an amendment through S.R.O. 256 (I)/ 2007
Islamabad, the 10th March, 2007.
The Regulatory Framework provides general criteria for installation of LPG Auto gas Stations. Now
OGRA has prepared a Brochure containing guidelines / layout plans in accordance with the approved
Regulatory Framework, showing details, including the minimum required inter distances for the
equipment, storage tanks/built- up areas etc.
under NFPA-58. In view of the foregoing, the layout plans were developed, taking into account the
following categories:
Stand alone LPG Autogas station

LPG Autogas station co- located with CNG, Gasoline & Diesel.
DISCUSSION ON REGULATORY FRAMEWORK & DEVELOPED LAYOUTS:
Regulatory Framework
The Regulatory Framework contains the following criteria to setup LPG Autogas Stations:
The LPG Auto refueling/dispensing station shall only be located on roads/highways having minimum
60 feet width.
The LPG Auto refueling/dispensing station shall not be located in congested or residential areas nor
should any of the adjacent buildings is used for accommodation or public gathering of any sort.

18
The installation of LPG refueling station shall conform to the technical standards prescribed in LPG
(Production & distribution) Rules, 2001 & NFPA 58.
For ensuring safety, the storage capacity at an LPG auto refueling/dispensing station shall be limited
to 10 metric tons (max.).
In addition to the requirements of NFPA-58, the minimum area for the installation of LPG auto
Refueling / dispensing station shall be in no case is less than 10,000 sq.
Feet with a minimum 80 feet frontage and depth.
Only brand new equipment shall be installed at the refueling / dispensing station i.e. use of second
Hand equipment shall not be allowed.
Conversion kit and cylinder shall only be installed at licensee approved centers and installed vehicle
shall have the respective licensee’s seal of compliance to NFPA- 58, otherwise it will be considered
illegal.
Layout Criteria
As part of development of layouts for LPG Autogas stations following criteria has been developed based
on NFPA-58 (Liquefied Petroleum Gas Code).
The minimum distance between LPG vessels and property lines shall be atleast 50ft as per
table 6.3.1.
The minimum distance between LPG vessels and any combustible material/dry grass shall be at least
50ft as per table 6.3.1.
The minimum distance between LPG vessels and property lines shall be atleast 10ft as per section
6.24 (Alternate Provisions for Installation of ASME containers), which requires use of fail- safe
product control measures and low emission transfer concepts.
The minimum distance between LPG vessels and buildings with fire resistant walls shall be at least
10ft as per section 6.24.
The minimum distance between LPG vessels and any combustible material/dry grass shall be at least
10ft as per section 6.4.5.2 and 6.4.5.4.
The minimum distance of LPG vessels vent and any source of ignition/open flame shall be at least
10ft and per table 6.3.9.
The minimum distance between LPG vessels and any above ground petrol/diesel storage shall be
atleast 20ft as per section 6.4.5.5.
The minimum distance between LPG vessels and auto dispenser shall be atleast 10ft as per table
6.5.3 Part (J).
The minimum distance between LPG vessels and point of transfer/decanting area shall be atleast 10ft
as per table section 7.2.3.3.
The minimum distance between buildings with fire resistant walls and point of transfer/decanting
area shall be at least 10ft as per table 6.5.3 part (A) and part (F).
The minimum distance between source of ignition/open flame and point of transfer/decanting area
shall be at least 25ft as per section 7.2.3.2(B).
The minimum distance between source of ignition/open flame and auto dispenser shall be atleast 25ft
as per section 7.2.3.2(B).
The minimum distance between buildings with non fire resistant walls and point of transfer/decanting
area shall be at least 25ft as per table 6.5.3 part (B).
The minimum distance between buildings with non fire resistant walls and auto dispenser shall be
at least 25ft as per table 6.5.3 part (B).
The minimum distance between auto dispenser and property line shall be at least 25ft as per table
6.5.3 part (D).
The minimum distance between point of transfer/decanting area and property line shall be at least
25ft as per table 6.5.3 part (D).
Metal cutting/welding shall be done atleast 35ft away from point of transfer / decanting and auto

19
dispenser as per section 7.2.3.2 (C).
Public way shall be atleast 10ft away from point of transfer/decanting and auto dispenser as per table
6.5.3 part (F).
The minimum distances between points of transfer/decanting and auto dispenser shall be 10ft as per
table 6.5.3 part (F).
PETROLEUM PRODUCTION DATA
PRODUCTION
The following table presents production data for the last two years for LPG, Petroleum and Diesel.
Item Quantity August July - August

2006 2005 2006-07 2005-06
LPG ‘000 Liters 41,124 40,895 82,999 85,450
Petroleum ‘000 Liters 2,097 1,998 4,518 4,209
Diesel ‘000 Liters 276,888 324,691 596,176 709,773
It is evident from the table that LPG production which was around 40,895,000 liters during the month of
August 2005, increased to 41,124,000 liters during August 2006 which suggests a substantial increase in
production. According to last year during July and August LPG production was 85,450,000 liters, which
decreased in during the same period in 2006-07 around 82,999,000 liters. It is expected that after
commencement of operations of JJVL-II, the production will further increase which would help in
maintaining demand and supply gap in future.
PRODUCT PRICING
This is to advise that, in pursuance of the decision of Economic Coordination

Committee (ECC) of Cabinet dated December 06, 2006, OGRA has determined the maximum base-
stock Price of LPG, effective March 03, 2007 as Rs. 31,949.45 / .Ton, .
OIL AND GAS REGULATORY AUTHORITY

Maximum Base-Stock Price of LPG
Effective March 3, 2007
FOB Saudi ARAMCO

Contract Price
Propane Butane
(US $/ M. ton) (US $/ M. ton)
February, 2007 A 526.00 526.00
Ratio B 40 60
LPG price calculation = A x B 21,040.00 31,560.00

Wt. Avg. price US $ /M. TON 526.00
Avg. US $ exchange rate for Feb. 07 Rs per US$ * 60.74
Maximum Base-Stock price of LPG Rs. /M. TON

Effective March 03, 2007 31,949.45

20
* Monthly average of the mean of the daily Bid and
Offer of Weighted Average Exchange Rate quoted by
the State Bank of Pakistan for February 2007, has been
provisionally adopted pending clarification from the
Federal Government, which has already been sought.
DEMAND
About 90% of auto rickshaw and taxi are fueled by LPG, whereas, majority of the rural population of
Pakistan use LPG as cooking and house warming fuel at home. LPG prices move in a similar manner to
petrol prices as its demand grows.
THREATS TO THIS INDUSTRY
LPG Distributors Association Pakistan said on November 11, 2006, that the sale of Liquefied Petroleum
Gas (LPG) had dropped 30 percent due to unprecedented increase in its prices by producer and marketing
companies for the past 7 months4. The association said that the LPG domestic consumers had abandoned
its use and turned to firewood while rickshaw owners and other transporters preferred petrol and diesel as
LPG firms had been fleecing them by constantly raising LPG rates without any justification.
The LPG association chairman said that the price of a gas cylinder for domestic use in neighboring India
was Rs 236 while it was Rs 650 to 700 in our country (during November and December 2006), which is
reported to be self-sufficient.
ENVIRONMENTAL AND PROTECTIONS ASPECTS
LPG is much cleaner than diesel. The dirty black smoke that we see coming from diesel vehicles is
particulates – a known cause of sickness and deaths. By replacing a diesel engine with an LPG powered
equivalent, over 90 percent of this particulate matter can be eliminated.
LPG powered vehicles emit significantly fewer greenhouse gases and other pollutants than petrol-
powered equivalents. LPG typically has around 20 per cent less ozone forming potential (a measure of the
tendency to generate photochemical smog),
between 10 and 15 per cent lower greenhouse gas emissions and only one fifth air toxics emissions.
LPG delivers clear environmental benefits over diesel and petrol. Recent independent automotive tests
submitted to the Department for Transport have shown that LPG emits:
 120 times less particulate matter compared to diesel;

 less than half the NOs of petrol and less than one twentieth the NOs of diesel;
 and 17 per cent less CO2 compared to petrol and 2 per cent less CO2 compared to diesel, on a
well to wheel basis
LPG’s impact on the environment in the unlikely event of a spillage is minimal as propane is lighter than
water. It therefore readily disperses without combustion and with no contamination of water courses or
surrounding land – unlike petrol or diesel where spillage is a major environmental concern.
PRODUCT/PROJECT STANDARDS AND COMPLIANCE ISSUES
Rules and regulations which govern any explosive material also apply on LPG. Its transportation, storage,
construction of storage facility, filling of cylinders and their transportation, etc. all need to be carried out
according to the standards and specifications provided by the explosive department, government of

21
Pakistan. For LPG business, a license will be required from explosive department of the concerned
province. Details have been provided in the following lines.
REQUIREMENTS FOR GRANT OF PERMANENT LICENSE UNDER EXPLOSIVES
I) Formal application with attested photocopy of National Identity Card briefly stating the
purpose of obtaining License and justification.
II) Application in the prescribed Form C, dully filled in and signed by the applicant.
III) Distance Form D, dully filled in against all columns there of as per schedule VI of the
Explosives Rules 1940 and signed by the applicant.
IV) Original treasury receipt for the amount payable as per column 5 of schedule IV of the
Explosives Rules, 1940 showing the amount paid under the following Head of Account in
any branch of the National Bank or Government Treasury.
1200000-Receipts from Civil Administration & other Functions
1260000-Economic Services Receipts
1264000-Industrial and Mineral Resources
1264100-Industiral and Mineral Resources Industrial Safety Explosives Department
V) No objection certificate along with the signed plan from the District Authority concerned to
the effect that the Authority has No objection to the grant of license to the application for
possession/sale of Explosives. No objection certificate if not submitted by the applicant will
be obtained by the Department from the District Authority after receipt of other complete
particulars from the applicant.
VI) Six copies of plan duly signed by the applicant and drawn to scale on durable paper showing
full constructional details of the proposed LPG storage site, and site with full surroundings
and important land marks to facilitate its location. The distances maintained around the
proposed LPG storage site shall be marked clearly.
VII) Documents showing the extent of possession/ownership of land for maintaining

required safety distances from the explosives storage magazine.
VIII) Present consumption of explosives in the area and nature of work requiring use of
explosives.
IX) Expected market potential in 5 years from now with full justification.
X) Complete details of the present consumers of explosives in the area giving their names,
complete postal addresses, nearest Police station(s), approximate daily consumption of
explosives by each consumer stating their nature of work requiring explosives.
XI) Details of other explosives magazine(s) 6 existing if any within a radius of 50 KM from the
site of proposed magazine.
XII) Any proof/certificate showing competence and experience of the applicant or his authorized
worker/agent/employee/supervisor in the handling of explosives.
XIII) Details of vehicle to be used for transport of explosives from source of supply to the storage
magazine and the approximate distance in between.
XIV) Undertaking by the applicant to the effect he will observe strictly all the
requirements of Explosives Rules 1940 and submit Fortnightly Reports on the

22
three prescribed Forms
B-I, B-II, and B-III regarding purchase, use etc. of Explosives.
XV) Certificate to the effect that guard over the magazine7 will be provided 24 hours by the
License.
An LPG tank after ten years shall be examined for re-qualification. Re-qualification is a procedure by
which a cylinder is inspected and retested to determine its acceptability for continuous service. This
method determines if a tank is condemned (a cylinder that does not pass the required tests and can not be
repaired), or, repairable. A tank shall be repaired for cuts, corrosion or dents five years after the time of
re-qualification. Repair is defined as the removal and replacement of parts or attachments of LPG
cylinders and other corrective measures.
A condemned cylinder, as the standard specifies, is a scrap and should be destroyed either by cutting
diagonally, or crushing the cylinder or any part so that it can no longer be used.
Consumers are enjoined to make sure that the embossed markings of the brand name or name of the
owner is printed on the cylinder.
To ensure safety throughout the LPG supply chain, LPG storage tanks, cylinders bowzers, and
distribution outlets of the licensees should meet the minimum safety standards as laid down in applicable
Rules.
Decanting of LPG from cylinder to cylinder is prohibited and OGRA can cancel licenses of the LPG
marketing companies involved in this activity directly or indirectly.
SPECIFICATIONS FOR TEMPORARY STORAGE OF EXPLOSIVES
Following detailed guidelines have been provided by the explosive department of the government for the
companies dealing in explosive materials. It is mandatory for the LPG businesses to comply with the
following.
1. A temporary storage may be in above ground strong wooden or Bamboo Cabin or preferably a
damp proof pit.
2. The height of a cabin or depth of a pit shall not be less than 6 feet.
3. There shall be no uncovered iron or steel in the construction of cabins.
4. For above ground cabin it is necessary to have an earthen mound or screen wall in between the
Explosives cabin and the cabin containing detonators.
5. The floor of the temporary storage shall be covered with wooden planks.
6. Main explosives and detonators shall be stored in separate cabins or pits at least 10 feet apart.
7. The explosives shall be covered with tarpaulins awning so as to protect against sun and rain and
the margin of a pit shall be so raised as not to allow rainwater to drain inside it.
8. Shelves, benches and fitting shall be of wood or bamboo free from iron nails and grit.
9. The capacity of a pit or a cabin per 16 sq.ft. of the base area with 30% more area as working
space.
10. At least 6 feet high barbed-wire fencing shall be provided all rounds at a distance of not less than
30 feet from the storage cabins/pits. Other safety distance shall be maintained as per Schedule VI
of the Explosives Rules, 1940.
CONDITIONS FOR TRANSPORT OF COMMERCIAL EXPLOSIVES IN A VAN BY ROAD.

1. The vehicle shall be in perfect serviceable condition in all respects.
2. The words DANGER and EXPLOSIVES shall be written conspicuously in Red color on three
sides of the vehicle so as to be clearly visible from a distance and electric lamp with siren shall
preferably be fixed on the vehicle for use in emergency.
3. There shall be no naked iron or steel in the interior of vehicle and no footwear with exposed iron
or steel shall be worn by attendants on the vehicle.

23
4. The interior of vehicle shall be kept thoroughly clean from grit, oil rag, waste and other
combustible material at all times.
5. All electric cables must be heavily sheeted. No junction boxes, switches, fuses, lamp fittings or
other electrical appliances or cable joints shall be allowed within the cargo compartment.
6. A quick action cut-off valve shall be fitted to the fuel pipe in an accessible position.
7. The driver shall not be under the age of 21 years and the attendant shall not be under the age of
18 years. The driver shall hold heavy duty driving licence.
8. Persons incharge of the vehicle must be experienced in the handling of explosives.
9. All persons engaged in loading, unloading or conveying explosives shall observe all necessary
precautions for the prevention of accidents by fire or explosion and no unauthorized person shall
be allowed to have an access to the vehicle.
10. No person shall smoke while driving, attending to or working on the vehicle and no matches or
sources or fire of heat, smoking material shall be carried on the vehicle.
11. Every consignment of explosives for transportation shall be accompanied by a license in Form C
and a pass issued by licenses in Form H and attested photo-copies of these documents shall be
sent to the Chief Inspector of Explosives, Karachi and to the Inspector of Explosives and District
Magistrate in whose jurisdiction the magazine9 in situated.
12. Loading and unloading shall NOT be done in the vehicle while its engine is running or its fuel
tank is being filled.
13. Explosives in excess of the authorized limit shall NOT be carried on the vehicle.
14. Damaged packages shall NOT be loaded in the vehicle.
15. Explosives shall NOT be carried in the Driver s Cabin under any circumstances.
16. Detonators or other explosives containing their own means of ignition and Fire works shall NOT
be loaded together or with any other explosives and must be transported separately.
17. All packages must be well secured and effectively protected against weather and the risk of
pilferage or sabotage.
18. All packages must be appropriately labeled as to the nature of Explosives.
19. If loading, unloading takes place in wet weather, adequate stops shall be taken to keep the
packages of Explosives dry.
20. The loading or unloading of explosives when once begun shall be proceeded with all due
vigilance until the same has been completed.
21. No extra fuel shall be carried during conveyance other than in the fuel tank of the vehicle.
22. Vehicle shall not be taken to any garage or repair station while carrying explosives and condition
of types, breaks and explosives shall be checked after short breaks during journey.
23. Efficient locking arrangement shall be provided at all times.
24. Efficient chemical fire-extinguisher of adequate capacity shall be carried on the vehicle.
25. At least one person (attendant) shall accompany the driver and the vehicle containing explosives
shall not be left unattended except when absolutely necessary.
26. Other vehicle with its engine running shall NOT as far as possible be allowed within fifty feet of
the vehicle containing explosives.
27. The vehicle shall NOT be driven at the speed more than 30 miles (50 Kilometers) an hour on
smooth road.
28. Populated areas shall be avoided as far as possible and vehicle SHALL NOT be parked in any
building during journey.
29. The vehicle shall NOT be driven in any street or public place within the limits of a municipality
or cantonment except and in accordance with the conditions of a written permit granted by the
District Authority.
30. Explosives shall be delivered to authorize consignee only.
31. In case of any emergency, one person shall warn other traffic and one person shall inform police,
and the consignor or consignee, as may be convenient by the quickest possible means.
32. One copy of the drawing approved by the Department of Explosives shall always be kept with the
driver of the vehicle for production on demand by an inspecting officer.

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1

LPG BOTTLING PLANT

AUTO GAS STATION

Mohammad Saeed Awan Mobile # 0323-5252814

Mohammad Saeed Awan Mobile # 0323-5252814

International Automotive LPG Markets

Automotive LPG, the alternative motor fuel

Status of the Automotive LPG market in Europe

Mohammad Saeed Awan Mobile # 0323-5252814

Overview of LPG light vehicles running in Europe as 31st December 2001

Mohammad Saeed Awan Mobile # 0323-5252814

Automotive sector in Europe

Facts and figures on the Automotive sector

 More than 250 million vehicles on the European roads

Auto gas in Europe today

Top 10 Autogas countries in EU 27 (+Turkey)

Autogas in Europe today

 LPG is EU’s number one alternative fuel

Some information on the German market

2004: population of 30,000 LPG cars 600 Filling Stations

DVFG target: 1,000,000 LPG-fuelled vehicles by 2015

Mohammad Saeed Awan Mobile # 0323-5252814

LPG BUSINESS IN PAKISTAN

⇒ More than 40% of LPG is consumed by the Auto sector.

LPG BUSINESS OPPORTUNITY IN ALL OVER PAKISTAN

Mohammad Saeed Awan Mobile # 0323-5252814

MARKET ENTRY TIMING

PROPOSED BUSINESS LEGAL STATUS

PROPOSED LPG BOTTLING/DISTRIBUTION PLANT CAPACITY

KEY SUCCESS FACTOR & PRACTICAL TIPS

Mohammad Saeed Awan Mobile # 0323-5252814

INVESTMENT OPPORTUNITY IN THIS SECTOR

Mohammad Saeed Awan Mobile # 0323-5252814

⇒ PRICE COMPARISION OF PETROL, CNG, AND LPG

LOCAL PRODUCTION OF LPG:

S. No Name of Producers Location/Phone No.

Mohammad Saeed Awan Mobile # 0323-5252814

Producer Name of Field LPG Produced (M.Tons)

LPG UPLIFTED BY MARKETING COMPANIES.

Name of the Company LPG Uplifted (M. Tons)

Mohammad Saeed Awan Mobile # 0323-5252814

LPG DISTRIBUTION PROCESS (SUPPLY CHAIN)

LPG LPG LPG

LPG Retail Sales

PRODUCTION PROCESS OF LPG

Mohammad Saeed Awan Mobile # 0323-5252814

Production Process Flow Diagram

Mohammad Saeed Awan Mobile # 0323-5252814

Gas filling dispensers = (available in local and foreign market)

PLANT ANDMACHINERY REQUIREMENT

PLANT AND MACHINERY

PLANT AND MACHINERY MAINTENANCE

LAND AND BUILDING REQUIREMENT

LAND REQUIREMENT FOR PLANT

Mohammad Saeed Awan Mobile # 0323-5252814

1- 100 M.Tone Capacity Plant Cost, 45 Million (Land required 2 acre)

2- 10 M.Tone Capacity Plant Cost, 04 Million (Land required 20,000 Sft)

LPG PRODUCTION AND DISTRIBUTION POLICY 2006

Mohammad Saeed Awan Mobile # 0323-5252814

LPG SAFETY STANDARDS

Mohammad Saeed Awan Mobile # 0323-5252814

DISTRIBUTION OF LPG IN UNDER DEVELOPED AREAS

IMPORT AND EXPORT OF LPG