Sui Southern Gas Company expands LPG procurement amid energy challenges

Sui Southern Gas Company (SSGC) is ramping up its procurement of imported liquefied petroleum gas (LPG) as demand surges across Pakistan.

The utility has issued 28 tenders for the supply of imported LPG with delivery windows from March to July 2025, and plans to procure at least 42,000 metric tons, with the option to double or triple the amount.

SSGC supplies synthetic natural gas during peak demand periods as an alternative to piped gas.

"Sealed quotations are invited for supply of locally available imported LPG. The company reserves the right to procure one or more parcels against each tender enquiry," a tender document stated.

The utility has established LPG-air mix plants in remote areas of Sindh and Balochistan, where conventional pipelines cannot be laid. These plants mix LPG with air to produce synthetic gas, which is distributed to consumers through networks similar to those used for natural gas.

Pakistan's LPG market currently stands at approximately 1.06 million tons per annum. With demand expected to surge to 15,000 tonnes per day from the current 4,500-5,000 tonnes, SSGC's move comes amid efforts to address the persistent challenges in meeting the country's growing energy needs.

Last year, domestic natural gas production in Pakistan decreased by around five percent, while demand continues to outstrip supply. According to the International Trade Administration, natural gas accounts for 38% of Pakistan's total primary energy supply mix. As of February 14, domestic natural gas production was 2,716 mmfcd.

Approximately 25% of the country's natural gas consumption is met through imported liquefied natural gas (LNG).

The government's provision of subsidized gas to the fertilizer sector has further strained resources, raising concerns about energy efficiency and environmental impact.

The board of directors of Sui Southern Gas Company Limited (SSGC), last week, approved the reopening of the Jamshoro Joint Venture Limited (JJVL) LPG-NGL extraction plant. SSGC will procure 25% of LPG production at the OGRA-notified monthly price.