KARACHI, Sept 23: Oil and Gas Development Company Ltd (OGDCL) has planned to enhance production of liquefied petroleum gas (LPG) to cater to the growing needs of northern and rural areas and urban suburbs.

“The company would invite the private sector to install LPG production plants near its eight gas fields in the country,” a source at OGDCL said here on Friday.

The decision has been taken keeping in view the government policy to increase the production of LPG to provide cheaper fuel to the areas where supply of natural gas through pipeline is not available.

“This will also help discourage tree cutting in these areas for fuel purposes and bring down LPG prices,” the source added.

The federal cabinet in its recent meeting has also allowed the utilization of LPG in the transport sector and directed the Oil and Gas Regulatory Authority (Ogra) to ensure safety standards.

He said OGDCL had a LPG plant at its Bobby gas field, producing 80 tons per day. The plant has a capacity to produce about 120 tons of LPG per day.

He pointed out that OGDCL would soon invite tenders from interested parties for the installation of LPG production plants near Qadirpur, Dhodhak, Dakhni, Loti, Pirkoh, Hundi/Sari, Missa Keswal and Sadqal gas fields on built, own and operate (BOO) basis. The parties will be asked to install state-of-the-art LPG plants near these gas fields. They will acquire land at their own to install these plants, he added.—APP