NOOR LPG
Developing the
Autogas Industry
Presented by
Belal Jabbar
CEO
5th LPG Conference, 2011
Outline to the Presentation
Introduction to NOOR LPG
 Why Autogas?
 Pakistan’s First Autogas Station
 Our Experience
 Obstacles to Growth
 The Way Forward
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NOOR LPG was incorporated in 2003 and
began commercial operations a year later.
In 2010 it set up Pakistan’s first Autogas Station
Presently it has a network of 100 plus
distributors spread across the country.
It markets LPG from 8 different LPG Storage
and Bottling Plants.
The Company has a dedicated fleet of LPG
Bowzers.
Why Autogas?
Available
 Affordable
 Acceptable

Available
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The use of LPG as an automotive fuel has thrived due to
its availability in all major urban cities.
Recent shortfall in local production has been met
through increased imports.
With the commissioning of BYCO’s second refinery the
availability is expected to increase by 400 tons per day.
OGDCL Fields too have the potential to produce an
additional 500 tons per day.
LPG is therefore expected to remain available!
Market Segmentation 2007
Domestic
Commercial
Industrial
Autogas
Market Segmentation 2011
Domestic
Commercial
Industrial
Autogas
Affordable
Fuel
Distance (km)
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Petrol
156
Diesel
160
LPG
210
LPG is cheaper than petrol and
diesel.
Average distance covered per
vehicle in Rs. 1000.
Autogas is 30% cheaper than
Petrol !
Acceptable
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Autogas is a powerful fuel. It has been readily
accepted due to its superior performance and
drive.
Autogas is an environment friendly fuel and its
use is advocated by Governments worldwide.
Furthermore conversion cost which in many
cases is a prohibitive cost is far lower than CNG
conversions.
A typical conversion cost for a Rickshaw
including kit and cylinder is Rs. 4000 and Rs.
8000 for a car.
Pakistan’s 1st Autogas
Station
Our Experience
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As anticipated our Principal users are Rickshaws that account for
nearly 80% of the sale.
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Four wheel conversions have been slow. Car owners are reluctant
to switch due to unavailability of other stations; similar to what the
CNG Industry experienced in the early 1990’s.
During peak winter months, Toyota Hiace Vans were fitted with LPG
cylinder and kits due to shortage of CNG.
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All conversions are as per OGRA’s prescribed
standards. Autogas cylinders are available in sizes
ranging from 4-40 kg.
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An installment plan was adopted for Rickshaw operators.
These rickshaws have always returned for refillings.
All vehicles retrofitted at the Station carry a LPG sticker.
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Sales at our Station
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As per prevailing practice of decanting market,
we first tried to sell Autogas in kilos .
However despite maintaining prices lower than
that of decanters, response was slow.
Thereafter sale price was converted to liters. Rs.
55 per liter had a far greater appeal than Rs 98
per kilo!
Daily consumption is presently 0.3 tons per day
and will increase once other stations are set up.
Status of Autogas Stations
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28 Provisional
Licenses have been
issued by OGRA for
construction of
Autogas Stations
Pakistan State Oil is
also in the process of
establishing LPG
dispensing facilities
on its sites.
Company
Licenses Issued
Admore Gas
01
Askar Oil
Services
04
Blessing Gas
01
Byco Petroleum 04
Hascol
Petroleum
02
Madni Gas
02
Petrosin
01
Progas
07
Wak Gas
05
Yasin Akram
01
Ministry of Petroleum and OGRA have
accepted a number of changes as
requested by the LPG Association of
Pakistan including:
(i) Allowing 3 wheelers to be refueled.
(ii) Doing away with minimum area
requirement of 10,000 square feet.
 But what is stalling the growth?
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1.
2.
3.
Price Instability
Ambiguity in Rules issued by Explosives
Department and OGRA
Lack of Incentives
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What do we need to move ahead from
here?
From the Regulator
1.
2.
3.
A one window solution for obtaining licenses and
NOC’s.
The Regulator needs to implement quality checks on
the product itself to ensure that sub standard LPG is
not filled.
A minimum distance between Autogas stations needs
to be determined and licenses to only be issued
thereafter. Allowing Autogas stations to be established
in close proximity to one another will have adverse
consequences as experienced by the CNG industry.
From the Ministry of
Petroleum/GOP
1.
2.
(i)
(ii)
(iii)
Clarity in Rules- Explosives vs. OGRA
Incentives to encourage the use of LPG as
Autogas:
Waiver of GST at the Pump
Incentives for converting vehicles- Tax
rebate/Exemption of Motor Vehicle Tax.
Duty Free Import of kits, LPG cylinders for
vehicular use and storage tanks for Autogas
Stations.
From the Private Sector
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Support from OEM’s- particularly manufacturers
of 3 wheelers. This has proven to be of
tremendous help to the CNG Industry.
Promotional Campaigns for Autogas-the LPG
Industry needs to effectively communicate the
advantages of LPG over other fuels including
CNG.
Development of Infrastructure to stabilize prices.
Conclusion
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Additional production of LPG will boost the market for
Autogas.
Natural gas shortage has badly affected the popularity
of CNG and presently there is a moratorium on the
construction of new CNG stations.
An opportunity exists for CNG stations (having
sufficient land) to install LPG dispensing facilities on
their sites. This is a win win for both the industries.
The LPG Industry must work closely together to
develop and promote Autogas.
THANK YOU