Govt Plans $1 Billion Investment in LPG Infrastructure

So as to expand Pakistan's LPG import infrastructure, the administration is planning a major expansion of Pakistan's import infrastructure, with an estimated $1 billion investment needed over the next three to five years.

Key points

• To address these constraints, the proposed guidelines envisage allocating land and berth facilities at Port Qasim for a 40, 000-metric-ton LPG terminal.
• The existing 10-metre draft at the SSGC LPG jetty restricts vessel size.
• The country additionally lacks refrigerated storage and an inter-terminal pipeline, restricting its ability to receive larger shipments and improve economies of scale.
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• The summary identifies weaknesses in Pakistan's LPG import infrastructure.

In practice, the proposals, which have been submitted to the federal cabinet for approval as part of a borader overhaul of the sector, aim to address storage and port limitations, facilitate larger LPG shipments and strengthen the country's capacity to meet rising demand through extra terminals, storage facilities and transportation infrastructure.

For context, the summary identifies weaknesses in Pakistan's LPG import infrastructure. The two terminals at Port Qasim each have storage capacity of approximately 6, 500 metric tons and can receive vessels of no more than 10, 000 deadweight tons (DWT), compared with international standards of 30, 000 to 50, 000 DWT. Govt to Deregulate LPG Pricing, Introduces Targeted Subsidies.

Meanwhile, the country additionally lacks refrigerated storage and an inter-terminal pipeline, restricting its ability to receive larger shipments and improve economies of scale.

In practice, the administration estimates that gathering demand through FY2035-36 will require approximately $1 billion in investment over the next three to five years in extra terminals, storage facilities, cylinders, filling plants and transportation capacity.

To address these constraints, the proposed guidelines envisage allocating land and berth facilities at Port Qasim for a 40, 000-metric-ton LPG terminal. The first phase would involve storage capacity of 10, 000 to 12, 000 metric tons on land with access to the SSGC jetty. Pakistan-Bound LNG Tanker Hit Near Hormuz by Unknown Attacker.

Notably, the existing 10-metre draft at the SSGC LPG jetty restricts vessel size. The administration proposes a feasibility study to compare dredging the Port Qasim approach channel to accommodate vessels of approximately 25, 000 DWT with developing a jetty capable of receiving highly sizeable gas carriers (VLGCs), along with a refrigerated terminal.

In the interim, state-owned entities may be allowed access to existing terminals and storage facilities. PSO and SLL may additionally be authorised to arrange long-term and government-to-government supply agreements, similar to the KPC arrangement for high-speed diesel, to serve as a national import backstop. State-owned entities may develop or contract extra storage and handling capacity. Stay Connected with ProPakistani.

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For now, govt Plans $1 Billion Investment in LPG Infrastructure remains the part of the story worth watching, and further updates are likely as more details are confirmed.