- Feasibility study with S&P Global Energy aims to expand LPG infrastructure and improve long-term supply
Karachi: Engro Vopak Terminal Limited (EVTL) has launched a feasibility study with S&P Global Energy to examine the development of Pakistan’s first refrigerated liquefied petroleum gas (LPG) import and storage terminal, a project that could significantly strengthen the country’s energy infrastructure and improve future fuel supplies.
According to Beyond Time News, the study is designed to evaluate the technical and commercial viability of expanding Pakistan’s LPG infrastructure as demand continues to rise while domestic natural gas production declines.
Growing Demand Drives Infrastructure Plans
Pakistan has witnessed steady growth in LPG consumption over the past decade as households, businesses, and industries increasingly rely on the fuel for cooking, heating, and industrial operations.
Energy experts believe this trend is likely to continue as conventional natural gas reserves gradually decline and supply constraints persist across various regions of the country.
According to Beyond Time News, current market assessments indicate that Pakistan may face a widening LPG supply gap in the coming years, making investment in modern import and storage facilities increasingly important.
Pakistan’s First Refrigerated LPG Terminal Under Review
The feasibility study will explore the establishment of Pakistan’s first refrigerated LPG import and storage terminal.
Unlike conventional LPG storage systems, refrigerated terminals allow much larger volumes of liquefied petroleum gas to be imported and stored at lower temperatures. This enables countries to receive larger cargo shipments, improve storage efficiency, and strengthen supply reliability.
If developed, the facility would help diversify Pakistan’s energy supply sources while improving access to international LPG markets.
Improving Energy Security
According to Beyond Time News, the proposed infrastructure is expected to support several long-term objectives, including:
- Expanding national LPG storage capacity.
- Improving supply chain resilience.
- Increasing flexibility in fuel imports.
- Allowing larger LPG cargo deliveries.
- Reducing supply disruptions during periods of high demand.
Energy analysts say enhanced storage capacity can also help stabilize domestic supplies during seasonal demand spikes or international market volatility.
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Industry Leaders Highlight Strategic Importance
EVTL Chief Executive Officer Syed Ammar Shah said strengthening Pakistan’s LPG supply chain has become increasingly important as energy demand continues to grow.
He said the company plans to combine the global operational expertise of Royal Vopak with Engro’s local engineering capabilities and understanding of Pakistan’s energy market.
According to him, refrigerated LPG infrastructure has already become standard practice in many advanced economies, and the feasibility study will assess whether similar facilities can deliver long-term benefits for Pakistan.
Why Refrigerated LPG Infrastructure Matters
Refrigerated LPG terminals play an important role in modern energy logistics.
These facilities allow countries to import LPG in larger quantities using Very Large Gas Carriers (VLGCs), reducing transportation costs and increasing operational efficiency.
Additional storage capacity also provides greater flexibility in managing fuel inventories, helping governments and energy companies respond more effectively to fluctuations in international prices or supply disruptions.
For Pakistan, where energy shortages periodically affect households and industries, modern LPG infrastructure could contribute to improved fuel availability.
Potential Economic Benefits
Beyond strengthening energy security, investment in large-scale LPG infrastructure could generate broader economic advantages.
Possible benefits include:
- Improved energy reliability for industries.
- Greater investor confidence in the energy sector.
- Lower logistics costs through bulk imports.
- Support for industrial and commercial growth.
- Enhanced resilience against international supply disruptions.
Analysts note that modern energy infrastructure is essential for supporting long-term economic development and maintaining stable fuel supplies.
Why This Matters
Pakistan’s energy sector is undergoing a gradual transition as domestic gas production declines and demand for alternative fuels continues to rise.
Projects aimed at expanding LPG infrastructure could help diversify energy sources, improve supply security, and reduce the country’s vulnerability to fuel shortages.
The feasibility study represents an important first step in determining whether refrigerated LPG storage can become part of Pakistan’s long-term energy strategy.
Conclusion
Engro Vopak Terminal Limited’s partnership with S&P Global Energy reflects growing efforts to modernize Pakistan’s energy infrastructure. By evaluating the country’s first refrigerated LPG import terminal, the project could lay the foundation for a more reliable, efficient, and resilient LPG supply chain capable of meeting future energy needs while supporting economic growth.
Frequently Asked Questions
What is Engro Vopak Terminal studying?
The company is conducting a feasibility study for Pakistan’s first refrigerated LPG import and storage terminal.
Why is Pakistan expanding its LPG infrastructure?
Growing LPG demand and declining domestic natural gas production have increased the need for stronger import and storage facilities.
What are the benefits of refrigerated LPG terminals?
They allow larger cargo imports, improve storage capacity, strengthen supply chains, and enhance energy security.
Who is conducting the feasibility study?
Engro Vopak Terminal Limited is carrying out the study in collaboration with S&P Global.
How could the project benefit Pakistan?
The proposed infrastructure could improve fuel availability, support industrial growth, enhance energy security, and strengthen long-term supply resilience.
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