Govt approves new guidelines for LPG air-mix plants

ISLAMABAD: The government has approved new guidelines for the installation of liquefied petroleum gas (LPG) air-mix plants by the private sector, the Directorate General of Liquid Gases (DGL) said. The new guidelines allow the private sector to set up LPG air-mix plants on commercial considerations at their own costs and liabilities subject to meeting the regulator, Oil and Gas Regulatory Authority (OGRA)'s licensing and operational requirements.

The LPG supply preference or dedication mentioned in LPG Policy 2016 will not be applicable on LPG air-mix plants developed by the private sector. However, LPG air-mix plants may be entitled to purchase LPG in bulk at the producer's price notified by OGRA, from time to time. The tariff for LPG air-mix plants, developed and operated by the private sector, will be deregulated.

The status of LPG air-mix plant licensee shall be the same as that of LPG storage, filling and distribution plant and that they shall also be entitled to import LPG governed by the prevent trade policy and any other applicable policies/law/rule or instructions/directives of the federal government.

The LPG air-mix plant licensee/developer/owner of the society shall not prohibit the consumers/suppliers from switching to alternate competing fuels supplied by any third party (be it piped natural gas or LPG cylinders, another LPG air-mix plant, virtual LNG project etc.).

The LPG air-mix plant licensee of such plan will notify monthly tariff for information of consumers and also submit details of monthly tariff to OGRA latest by 10th of every month. OGRA will ensure that the LPG air-mix plant licensee may not take any measures to prevent marketing of LPG cylinders in the area where the LPG air-mix plant is supplied.

The complaints resolution in respect of the pipeline network for the distribution of LPG and its metering to the households shall be done by OGRA as being done in the natural gas sector. OGRA being a regulator of LPG sector is advised to comply with policy guidelines under intimation of this division.

The new guidelines are seen as a welcome development for the LPG sector, which has been facing challenges in recent years due to rising prices and competition from other fuels. The guidelines are expected to help the sector to grow and meet the growing demand for LPG in Pakistan.