Pakistan plans $1 billion investment in LPG infrastructure over next five years

Pakistan is preparing a plan for about $1 billion of investment in LPG infrastructure over the next three to five years, covering import terminals, storage, filling plants, cylinders and transport. Profit by Pakistan Today reported the proposal, citing a senior Petroleum Division official, as the country faces rising LPG demand and declining domestic natural gas output.

Annual LPG use is about 2.4 million metric tonnes and is forecast to reach 4.16 million metric tonnes by FY2032-33, while domestic production is projected to rise from 960,000 to 1.35 million metric tonnes. Imports could consequently increase from around 1.4 million to 2.8 million metric tonnes. Current storage totals about 100,000 metric tonnes, and seaborne imports rely on two Port Qasim terminals.

State-owned PSO Pak Gas and SSGC LPG together hold approximately 5.4% of the market, while Sui Northern Gas Pipelines Limited is setting up an LPG subsidiary. The companies operate in a market where private operators remain dominant, as more households without piped gas rely on alternative fuels.