LPG Feasibility Report

Pre-Feasibility Study
LPG Marketing & Distribution Business

ED
(SSME A DO C
DA EN
CUME T))
NT
Small and Medium Enterprise Development Authority

Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
6th Floor L.D.A Plaza, Egerton Road Lahore. Pakistan 54000
Tel: (042) 111-111-456, Fax: (042) 6304926-7
Helpdesk@smeda.org.pk
REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE

PUNJAB SINDH NWFP BALOCHISTAN
6th Floor L.D.A Plaza,
Egerton Road Lahore. 5TH Floor, Bahria Ground Floor Bungalow No. 15-A
Pakistan 54000 Complex II, M.T. Khan Road, State Life Building Chaman Housing Scheme
Tel: (042) 111-111-456, Fax: Karachi. The Mall, Peshawar. Airport Road, Quetta.
Tel: (021) 111-111-456 Tel: (091) 9213046-47 Tel: (081) 831623, 831702
(042) 6304926-7
Fax: (021) 5610572 Fax: (091) 286908 Fax: (081) 831922
Helpdesk@smeda.org.pk Helpdesk-khi@smeda.org.pk helpdesk-pew@smeda.org.pk helpdesk-qta@smeda.org.pk
November 2007
Pre-Feasibility Study LPG Marketing & Distribution Business
DISCLAIMER
The purpose and scope of this information memorandum is to introduce the subject
matter and provide a general idea and information on the said area. All the material
included in this document is based on data/information gathered from various sources
and is based on certain assumptions. Although, due care and diligence has been taken to
compile this document, the contained information may vary due to any change in any
of the concerned factors, and the actual results may differ substantially from the
presented information. SMEDA does not assume any liability for any financial or other
loss resulting from this memorandum in consequence of undertaking this activity.
Therefore, the content of this memorandum should not be relied upon for making any
decision, investment or otherwise. The prospective user of this memorandum is
encouraged to carry out his/her own due diligence and gather any information he/she
considers necessary for making an informed decision.
The content of the information memorandum does not bind SMEDA in any legal or
other form.
DOCUMENT CONTROL
Document No. PREF-25
Revision 1
Prepared by SMEDA-Sindh
Approved by Provincial Chief - Sindh
Issue Date November, 2007
Issued by Library Officer
Page 1 of 32
PREF-25/November, 2007/Rev1
1. P ROJECT PROFILE
1.1 OPPORTUNITY RATIONALE
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 30,000 rickshaws and taxis in Karachi 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.
1.2 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 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 a LPG marketing and distributing company which 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,
Page 2 of 32
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.
1.3 MARKET ENTRY TIMING
There is no specific time for the entry in LPG marketing. After allocation of quota from
the producer, a marketing company can start its operations immediately as demand is
persistent in urban and rural markets.
1.4 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.
1.5 PROPOSED LPG BOTTLING/DISTRIBUTION PLANT CAPACITY
The capacity of the proposed LPG storage and distribution facilities would be around
80 M. Ton, whereas, filling capacity would be about 5 ton per day (based on 8 hours
shift).
1.6 PROJECT COST

Total project cost of the LPG Marketing & Distribution business would be
approximately Rs. 48.92 million. Out of this, capital cost of the project is around Rs. 47
million and remaining will be the working capital.
1.7 PROJECT INVESTMENT
A total of Rs. 48.92 million will be required to setup and operate the proposed LPG
Marketing and Distribution business.
1.8 RECOMMENDED PROJECT PARAMETERS
Capacity Human Resource Technology/Machinery Location

Storage Capacity: 80 ton Local and Imported
Port Qasim,
Cylinder Filling capacity: 5 21 Machinery (German and
Karachi
ton per day France)
Financial Summary
Project Cost IRR NPV (Rs) Payback Period Cost of Capital (WACC)
Rs. 48.92 million 28% 22.8 4 Years and 6 months 17.5%
Page 3 of 32
1.9 PROPOSED LOCATION
Location for setting up a LPG distribution plant has imperial implications on fixed
costs, operational costs and procedures. The proposed LPG plant can be established at
Port Qasim, Karachi in Sindh, and Multan Road in Punjab. These locations have basic
infrastructure and facilities required for LPG bottling and distribution plant, however
for the purpose of this pre-feasibility study Port Qasim industrial area has been
assumed.
1.10 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.
 Survival during the critical period when 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.
2. SEC TOR & INDU STRY ANA LYSIS

LPG is a derivative of two large energy industries: natural gas processing and crude oil
refining. When natural gas is extracted from the earth, it is a mixture of several gases
and liquids. Methane, which is sold by gas utilities as “natural gas” constitutes about 90
percent of this mixture. Of the remaining 10 percent, 5 percent is propane and 5 percent
is other gases such as butane and ethane. Before natural gas can be transported or used,
the LP Gases (which are slightly heavier than methane, the major component of natural
gas) are separated out. Depending on the “wetness” of a producing gas field, gas liquids
generally contain 1%-3% of the unprocessed gas stream. Some LP Gases are also
trapped in crude oil. In order to stabilise the crude oil for pipeline or tanker distribution,
these “associated” or “natural gases” are further processed into LP Gas. Worldwide, gas
processing is a source of approximately 60% of LP Gas produced.
In crude oil refining, the LP Gases are the first products produced on the way to making
the heavier fuels such as diesel, jet fuel, fuel oil, and gasoline. Roughly 3% of a typical
barrel of crude oil is refined into LP Gas although as much as 40% of a barrel could be
converted into LP Gas. Worldwide, crude oil refining is the source for the other 40% of
Page 4 of 32
LP Gas supplies although the ratio between gas processing and refining varies among
regions.
LP Gas production from these sources is a natural derivative. That means production of
LP Gas is assured since the primary motive for gas processors and refiners is to
produce fuels other than LP Gas but first the LP Gases are produced. Although tied to
the production of natural gas and crude oil, LP Gas has its own distinct marketing
advantages and can perform nearly every fuel function of the primary fuels from which
it is derived.
2.1 SECTOR CHARACTERISTICS AND OVERVIEW
LP Gas can be transported, stored, and used virtually anywhere in the world. It does not
require a fixed network and does not deteriorate over time. LP Gas is very clean
burning and has lower greenhouse gas emissions than any other fossil fuel when
measured on a total fuel cycle. Originating mainly from natural gas production, it is
also non-toxic and will not contaminate soil or aquifers in the event of a leak.
LP Gas is cost-effective, since a high proportion of its energy content is converted into
heat. LP Gas can be up to five times more efficient than traditional fuels, resulting in
less energy wastage and better use of energy resources. LP Gas is a multi-purpose
energy. There are more than a thousand applications, from cooking, heating, air
conditioning and transportation, to cigarette lighters and even the Olympic torch.
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.
Page 5 of 32
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 License1
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).
 Minimum Work Program:
o Number of storage tanks and capacity of storage tanks.
o Bottling facility capacity.
o Quantity of LPG to be distributed per day or per month.
o Identification of areas where distribution / marketing of LPG is planned.
1
Oil & Gas Regulatory Authority
Page 6 of 32
2.2 SECTO R CHARACTERISTICS
2.2 .1 PRODUCTION2
The following table presents production data for the last two years for LPG, Petroleum
and Diesel.
August July – August

Item Quantity
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.
2.2 .2 PRODUCT PRICING3

During the study of LPG industry, it was observed that product price for LPG are
revised generally every 15 days and government launch its prices on fortnightly basis.
Latest prices for the week as compared to last week are as under.
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,
per attached computation sheet.
OIL AND GAS REGULATORY AUTHORITY

Maximum Base-Stock Price of LPG
effective March 3, 2007
FOB Saudi ARAMCO
Contract Price
Propane Butane
(US $/ M.
(US $/ M. ton) ton)
February, 2007 A 526.00 526.00
2
Federal bereau of Statistics website ( http://www.statpak.gov.pk/depts/fbs/statistics/qim/qim.htm )
3
http://www.ogra.org.pk/cats_disp.php?cat=95
Page 7 of 32
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
* 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.
2.2 .3 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.
2.2 .4 TH REATS TO TH IS 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.
2.2 .5 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
4
Daily Times, Sunday, November 12, 2006.
Page 8 of 32
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.
5
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.
2.2 .6 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 Pakistan. For LPG
business, a license will be required from explosive department of the concerned
province. Details have been provided in the following lines.
2.2 .7 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
5
http://www.lpg-mower.co.uk/lpg-groundscare-the-advantages.htm
Page 9 of 32
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
three prescribed Forms B-I, B-II, and B-III regarding purchase, use etc. of
Explosives.
6
LPG or other explosive storage site(s)
Page 10 of 32
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.
2.2 .8 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
Page 11 of 32
7. The explosives shall be covered with tarpaulins awaning 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 round 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.
2.2 .9 CONDITIONS FOR TRANSPORT OF COMMERCIAL EXPLOSIVES IN A VAN BY ROAD8

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.
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.
8
Website of Explosive Department Sindh
Page 12 of 32
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.
9
Page 13 of 32
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.
3. MARKET INFORMATION
3.1 CURRENT MARKET
Currently there are 61 LPG marketing and distribution companies operating in

Pakistan10. 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.
3.2 MARKET POTENTIAL
Attraction for LPG among the commercial vehicle operators (particularly taxi and auto
rickshaw) in Karachi and other large cities & its demand in the rural areas of Punjab
which account for about 70% 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.
Petrol drive costs Rs. 5.25 per kilometer as against Rs. 1.75 for L.P.G and Rs. 1.25 for
CNG. On an average mileage of 40 kilometers, an average driver using LPG makes a
10
Based on discussions with the existing players
Page 14 of 32
saving of Rs. 140 per day, and for a CNG operated vehicle, the saving is Rs 160 per
day. This clearly suggests a cost benefit of LPG and CNG over petrol hence has a
greater attraction for vehicle operators.
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.
All LPG marketing companies receiving LPG from sources in Sindh and Balochistan
will be obligated to supply at least 10% of their local LPG in Balochistan province.
3.3 LO CAL PRODUCTION OF LPG11:
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.
7-B, Korangi Industrial Zone, Korangi,

1 Pakistan Refinery Limited
Karachi. 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
PIDC House, Dr.Ziauddin Ahmed Road, Ph.

5 Pakistan Petroleum Limited
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
Hayat Hall, Block No.2, Diplomatic Enclave

8 Orient Petroleum Inc.
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
11
www.mpnr.gov.pk
Page 15 of 32
3.3 .1 LPG PRODUCED12
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
3.3 .2 LPG UPLIFTED BY MARKETING COMPANIES13
Data on LPG uplifted by the LPG marketing companies during past one year has been
provided in the following table:
12
www.mpnr.gov.pk
13
www.mpnr.gov.pk
Page 16 of 32
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
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
Page 17 of 32
4. LPG DISTRIBUTION PROCESS (SUPPLY CHAIN)

Typical distribution process and supply chain of LPG has been illustrated in the
following diagram:
LPG DISTRIBUTION PROCESS
LPG Marketing LPG Distributor /

LPG Production LPG Retail
& Distribution Sub-
Company Agent
Company Distributor
LPG Retail Sales

Shop
Marketing and distribution companies uplift LPG from the production site using
own/rented bowzers and store it at their storage site. In Karachi such sites are located at
Port Qasim, Hub, Super Highway etc. Marketing/distribution companies which are also
known as bottling companies fill gas cylinders with LPG and store them for
distribution. Appointed Distributors/Sub-distributors bring their gas cylinders on their
own vehicles on the marketing company site, get them filled (or exchange them with
the filled cylinders), make payment and carry their cylinders on the distribution point.
From their distribution points cylinders are supplied to the retailers or agents from
where it is provided to the end user. In case of household or commercial use small
capacity cylinders (normally 6 kg to 11.8 kg) are further filled and supplied to the users
directly by the sub-distributor. This filling process also be carried out at marketing
company site and sub-distributors uplift cylinders from the site and store them at their
location, from where they are distributed among households and commercial users i.e.
hotels etc.
4.1 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 rich solvent from the bottom of the LPG absorber
Page 18 of 32
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
4.2 RAW MATERIAL REQUIREMENT
The only raw material for the LPG marketing and distribution business would be LPG.
For the proposed project, about 5 ton of LPG will be required as raw material on daily
basis at initial stages of the project. The requirement of LPG would increase by 10%
annually with an increase in supply with the same proportion.
4.3 TECHNOLOGY OPTIONS
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:
Page 19 of 32
Technology Company/Supplier
Gas filling dispensers French Siraga
Pumps German CE Sterling
Storage Tanks Pakistani Descon Engineering
Contact addresses of the companies are given below:
Descon Headquarters Descon Karachi Office

Lahore 9th Floor Business Avenue, 26-A Block-6,
18 km Ferozepur Road, Lahore, P.E.C.H.S,
53000 Main Shahrah-e-Faisal, Karachi,
Pakistan 75400 - Pakistan
Tel: (92 42) 5990034, 5805134 Phone: +92.21.454.4481-4
UAN : (92 42) 111-DES-CON Fax: +92.21.454.4480
Fax: (92 42) 5811005, 5811135 E-mail: desconkarachi@descon.com.pk
Email: descon@descon.com.pk Contact Person: Murtuza Ali
(mrali@descon.com.pk)
Siraga France and CE Sterling Germany can be contacted using the following URLs
http://www.siraga.com/siraga/siraga-contacts.php?langue=uk
http://www.sterlingfluid.com/sterlingsites/group/index.htm
4.4 PLANT AND MACH INERY REQUIREMENT
Machinery required for the LPG distribution plant would include the following:
PLANT AND MACHINERY

(In Rs.)
Required
S. Total Cost Local/
Machine No. of Unit Price
No. (in Rupees) Imported
Units
1 Storage Tank - 50 tonne 1 5,000,000 5,000,000 Local
2 Storage Tank - 30 tonne 1 3,000,000 3,000,000 Local
3 Filling Dispenser 4 500,000 2,000,000 Imported
4 Pumps 2 1,100,000 2,200,000 Imported
5 Cylinders (11.8 KG) 500 1,500 750,000 Local
6 Cylinders (45.4 KG) 500 3,800 1,900,000 Local
7 Support Structure - Piping & Valves 2,500,000 Local
8 Fire Fighting Equipment 2,500,000 Local
Total 19,850,000
Page 20 of 32
There are few local suppliers/ manufacturer of storage Tanks and other related
machinery for LPG distribution setup. During the course of study for this pre-
feasibility, we have contacted the following local manufacturer and fabricator of LPG
distribution setup:
4.6 PLANT AND MACH INERY 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.
5 LAND AN D BU ILD IN G R EQUIREMENT
5.1 SITE DEVELOPMENT

LPG Plant is sophisticated and require 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.
5.2 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.
5.3 BUILDING CONSTRUCTION COST
The LPG storage and distribution site can be divided into three areas:
1. Administration block/Office area

2. LPG dispensing/filling area
3. LPG supply taking area (Bowzer platform and supply area)
Administration block will consist of about 800 square feet area which will be used for
accounts, administration and other official purposes. LPG dispensing/filling area will
be used to fill cylinders. Four LPG dispensers will be installed at this place. It is
estimated that around Rs. 3 million would be required for the site development and
construction. Following table provides detailed breakup:
Civil Works Total

Size/Area
S.No. Details /Construction Construction
(Sq. Ft.)
Cost/Sq. Ft. Cost
1 Boundary wall of the site 2,200,000
Filling Area (plate form & Shade for
2 Dispenser) 3,000 150 450,000
4 Office Area 800 500 400,000
Page 21 of 32
Total Construction Cost 3,028,000
As the plan and machinery to be installed on the site would be of permanent nature and
would be immovable for a longer period, it has been assume that the plot will be
purchased for the proposed business purpose. This will cost around Rs. 20 million.
6 HUMAN R ESOURCE REQUIREMENT

A team of approximately 20 staff would need to be hired for establishing and running
LPG marketing and distribution business. The following table presents details about the
staff to be hired and their estimated payroll requirements.
No of Individual Monthly Annual

Staff Title
Persons Salary Salary Salary
Business Unit Manager/Owner 1
Plant Staff
Plant Incharge 1 60,000 60,000 720,000
Supervisor - Operations 1 25,000 25,000 300,000
Supervisor - Dispatch 1 18,000 18,000 216,000
Operators - Dispenser 3 8,000 24,000 288,000
Clerk / Gate Keeper 2 6,000 12,000 144,000
Technical Staff 1 10,000 10,000 120,000
Guard 2 6,000 12,000 144,000
Total Plant Staff 12 161,000 1,932,000
General Administration/ Marketing Staff
Marketing Manager 1 45,000 45,000 540,000
Accountant 1 10,000 10,000 120,000
Office Assistant 2 5,000 10,000 120,000
Guard 2 5,000 10,000 120,000
Driver 3 5,000 15,000 180,000
Total 9 90,000 1,080,000
TOTAL 21 251,000 3,012,000
6.1 EXPERIENCE
Dispatch Manager will be responsible for the collection, filling and dispatch of
cylinders to and from the sub-distributors. As the operations at LPG bottling site will be
of technical sort, it would need experienced staff for loading/unloading the product,
maintaining of storage tanks and compliance with the safety standards which would be
difficult if staff does not has relevant experience. It is proposed that staff with a
minimum of 2 to 3 years of relevant experience should be hired. It is also recommended
that the operations staff be provided with proper / regular training for handling of LPG.
Page 22 of 32
7 FINANCIAL ANALYSIS & KEY ASSU MP TIONS

The project cost estimates for the proposed “LPG Marketing and distribution business”
have been formulated on the basis of discussions with industry stakeholders and
experts. The projections cover the cost of land, Plant, machinery and equipment
including office equipment, fixtures etc. Specific assumptions relating to individual
cost components are given as under.
7.1 LAND & BUILDING
Land for setting up the proposed LPG Production & Distribution unit would be
purchased which will cost around Rs. 20 million {for a 2 Acre Plot at industrial area of
Port Qasim}.
For the site development, construction and renovation of office approximately Rs. 3
million will be required, which has been assumed to be depreciating at 10% per annum
using diminishing balance method.
7.2 OVERALL PLANT & OFFICE RENOVATION
To renovate the Plant / office premises in Year 5 and Year 10 a cost would incur for
which an amount equivalent to 5% of the total construction cost is estimated.
7.3 PLANT & OFFICE FURNITURE

A lump sum provision of around Rs. 310,000 for purchase of furniture is assumed. This
would include table, desk, chairs, air conditioner and office decoration articles etc. The
breakup of these expenses is given below:
S. No. Item Number Cost Total Cost

1 Table & Chair for Owner (at Office) 1 20,000 20,000
2 Tables & Chairs (for operations staff) 2 20,000 40,000
3 Tables & Chairs (Office) - Other Senior Staff 4 20,000 80,000
4 Waiting Chairs (Office & Plant) 20 1,000 20,000
5 Curtains/AC & Interior Decoration for office 1 50,000 50,000
6 Curtains & Interior Decoration for Factory 1 50,000 50,000
7 Electrical Fittings & Lights - Office 1 30,000 30,000
8 Electrical Fittings & Lights - Factory 1 20,000 20,000
Total 310,000
Page 23 of 32
7.4 DEPRECIATION TREATMENT
The treatment of depreciation would be on diminishing balance method at the rate of

10% per annum on the following. The method is also expected to provide accurate tax
treatment.
1. Machinery & Equipment
2. Land & Building Construction
3. Vehicles
4. Furniture and Fixtures etc.
7.5 UTILITIES
LPG Marketing and distribution business will be operated using electricity for plant
operations. This would draw considerable amount of electricity. The cost of the utilities
including electricity, diesel/fuel, telephone; and water is estimated to be around Rs.
1.35 million per annum. Breakup of the utilities expenses has been given below:
Total Annual
Total Monthly
Utility Annual %age
Cost (Rs.)
Cost (Rs.) Increase
1. Electricity 75,000 900,000 5%
2. Diesel for Vehicles 20,000 240,000 5%
3. Water 2,500 30,000 5%
4. Telephone 15,000 180,000 5%
Total 112,500 1,350,000
7.6 WORKING CAPITAL REQUIREMENTS
It is estimated that an additional amount of Rs. 2 million (approximately) will be

required as cash in hand to meet the working capital requirements. These provisions
have been estimated based on the following assumptions for the proposed business.
Description Amount in Rs.

First Three Months Salaries (Production staff) 483,000
First Three Months Utilities Charges 337,500
First Three Months Misc. Expenses 30,000
Bowzer Rent & Transportation 325,000
Raw Material 850,000
Total 2,025,500
Page 24 of 32
7.7 VEHICLE FOR SUPPORT
A loading vehicle would be required for providing services for the transportation of
cylinders and staff traveling from different locations. For this purpose, a minimum of
two vehicles have been proposed which will cost around Rs. 400,000/- each.
7.8 SELLING & DISTRIBUTION EXPENSES

Although marketing, promotion and distribution activities are limited in the LPG
business, for the purpose of this pre-feasibility, it has been assumed that the proposed
LPG Marketing and Distribution business would work with the sub-distributors and
may require direct supply to the key customers. The business may also need to give
incentives to the marketing staff for the business development purpose. Besides that,
advertising material would also need to be printed on periodical basis announcing
incentives and facilities to the customers. These arrangements would raise a
considerable cost to the business for which an amount equivalent to 1% of the annual
sales has been assumed.
7.9 MISCELLANEOUS EXPENSES
Miscellaneous expenses of running the business are assumed to be Rs. 10,000 per
month. These expenses include various items like office stationery, daily consumables,
traveling allowances etc. and are assumed to increase at a nominal rate of 10% per
annum.
7.10 BO WZER RENT & TRANSPORTATION EXPENSES

The business would have to bear the cost of LPG transportation from production site to
the storage plant. For this purpose bowzers will be required to be hired on rental basis.
It has been assumed that the per ton cost of LPG transportation will be between Rs.
700-900 depending on the prevalent market condition and availability of the bowzers. It
is estimated that rental cost of a 30 ton bowzer will be around Rs. 25,000/.
7.11 LPG INVENTORY
The proposed setup is assumed to maintain a minimum quantity of LPG to act as safety
stock against any shortage from supplier and to meet regular market demand. For this
purpose the storage facility will maintain 25 ton LPG at every point in time.
7.12 REVENUE PROJECTIONS
LPG business is carried out on cash basis and no credit policy factually does exist.
Therefore, no credit provisioning has been assumed, whereas, receivable period is also
Page 25 of 32
found to be almost zero. It has been assumed that the proposed business will initially
sell 5 ton LPG per day which will grow by 10% annually. Besides that, a 10% increase
in sales price has also been assumed on annual basis.
7.13 ACCOUNTS RECEIVABLES

Considering the industry norm, particular to the LPG Production & Distribution sector
and all of its allied industries, it has been assumed that 100% of the sales will be on
cash.
7.14 FINANCIAL CHARGES
It is assumed that long-term financing for 5 years will be obtained in order to finance
the project investment cost. This leasing facility would be required at a rate of 15%
(including 1% insurance premium) per annum with 60 monthly installments over a
period of five years. The installments are assumed to be paid at the end of every month.
7.15 TAXATION
Tax rate used is that applicable on SMEs which is 20%.
7.16 COST OF CAPITAL

The cost of capital is explained in the following table:
Particulars Rate
Required return on equity 20%
Cost of finance 15%
Weighted Average Cost of Capital 17.5%
The weighted average cost of capital is based on the debt/equity ratio of 50:50.
7.17 OWNER’S WITHDRAWAL
It is assumed that the owner will draw funds from the business once the desired
profitability is reached from the start of operations. The amount would depend on
business sustainability and availability of funds for future growth.
7.18 ANNEXURES
7.18.1 SUMMARY OF KEY ASSUMPTIONS
7.18.2 CO ST AND REVENUE SHEET
7.18.3 PROJECTED INCOME STATEMENT
7.18.4 PROJECTED BALANCE SHEET
7.18.5 PROJECTED CASH FLOW STATEMENT
Page 26 of 32
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Pre-Feasibility Study

LPG Marketing & Distribution Business

Small and Medium Enterprise Development Authority

REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE

1.1 OPPORTUNITY RATIONALE

They have the special property of becoming liquid at atmospheric temperature if

1.2 PROJECT BRIEF

1.3 MARKET ENTRY TIMING

1.4 PROPOSED BUSINESS LEGAL STATUS

1.5 PROPOSED LPG BOTTLING/DISTRIBUTION PLANT CAPACITY

1.6 PROJECT COST

1.7 PROJECT INVESTMENT

1.8 RECOMMENDED PROJECT PARAMETERS

Capacity Human Resource Technology/Machinery Location

1.9 PROPOSED LOCATION

1.10 KEY SUCCESS FACTOR & PRACTICAL TIPS

Following are the key success factors in LPG business:

 Dealing with the sub-distributors: Sub-distributors play important role in the

2. SEC TOR & INDU STRY ANA LYSIS

2.1 SECTOR CHARACTERISTICS AND OVERVIEW

INVESTMENT OPPORTUNITY IN THIS SECTOR

Pre-Qualification for LPG License1

Following requirements are required to be fulfilled for obtaining a license:

 Application on the prescribed proforma in triplicate

2.2 SECTO R CHARACTERISTICS

August July – August

2.2 .2 PRODUCT PRICING3

This is to advise that, in pursuance of the decision of Economic Coordination

OIL AND GAS REGULATORY AUTHORITY

February, 2007 A 526.00 526.00

* Monthly average of the mean of the daily Bid and

2.2 .4 TH REATS TO TH IS INDUSTRY

2.2 .5 ENVIRONMENTAL AND PROTECTIONS ASPECTS

forming potential (a measure of the tendency to generate photochemical smog),

 120 times less particulate matter compared to diesel;

LPG’s impact on the environment in the unlikely event of a spillage is minimal as

2.2 .6 PRODUCT/PROJECT STANDARDS AND COMPLIANCE ISSUES

2.2 .7 REQUIREMENTS FOR GRANT OF PERMANENT LICENSE UNDER EXPLOSIVES

I) Formal application with attested photocopy of National Identity Card briefly

1200000-Receipts from Civil Administration & other Functions

1260000-Economic Services Receipts

VII) Documents showing the extent of possession/ownership of land for maintaining

XI) Details of other explosives magazine(s) 6 existing if any within a radius of 50 KM

A condemned cylinder, as the standard specifies, is a scrap and should be destroyed

2.2 .8 SPECIFICATIONS FOR TEMPORARY STORAGE OF EXPLOSIVES

1. A temporary storage may be in above ground strong wooden or Bamboo Cabin or

2.2 .9 CONDITIONS FOR TRANSPORT OF COMMERCIAL EXPLOSIVES IN A VAN BY ROAD8

11. Every consignment of explosives for transportation shall be accompanied by a

Currently there are 61 LPG marketing and distribution companies operating in

3.2 MARKET POTENTIAL

3.3 LO CAL PRODUCTION OF LPG11:

S.No. Name of Producers Location/Phone No.

7-B, Korangi Industrial Zone, Korangi,

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-

PIDC House, Dr.Ziauddin Ahmed Road, Ph.

Oil & Gas Development OGDCL, Building, Jinnah Avenue, Islamabad

7 Pakistan Oilfields Ltd. Morgah, Rawalpindi. Ph.No.051-5487589

Hayat Hall, Block No.2, Diplomatic Enclave

Jamshoro Joint Venture Associated House, House No. 8, Street No.37,

3.3 .1 LPG PRODUCED12

Producer Name of Field LPG Produced (M.Tons)