Mna Energy Port Qasim Karachi

29/08/2013

ISLAMABAD:

The Oil and Gas Regulatory Authority (Ogra) has decided to give permission to Pakistan State Oil (PSO) for setting up 26 liquefied petroleum gas (LPG) filling stations at its retail outlets across the country, officials say.

Overall, the government is targeting to set up 100 LPG stations at retail outlets of PSO, in a bid to gradually phase out compressed natural gas (CNG) stations over the next two years as per plan announced by the adviser to prime minister on petroleum and natural resources.

According to a senior Ogra official, the petroleum ministry will ensure availability of LPG before granting licences for filling stations in order to avoid shortage as has been seen in the case of natural gas.

“Ogra has made it mandatory for investors to submit documents showing LPG availability before obtaining licences for filling stations,” the official said, adding Ogra had earlier faced pressure to waive this condition.

However, government officials stress that the LPG market is unstable at present as many problems can emerge, particularly those that are related to price volatility and uncertain quantity.

Ogra fears that LPG will disappear from the market if additional supplies are not secured. “The government should sign long-term contracts with producer countries to enhance LPG supply,” the Ogra official said, adding local production should also be increased.

According to an analysis of efficiency levels of different types of fuel, if the cost of LPG is Rs97 per kg, the per kilometre cost for a 1,300cc car will be Rs5.10. In comparison, the per kilometre cost will be Rs4.40 for the 1,300cc car running on CNG if its price is Rs79.20 per kg while petrol will cost Rs8.61 per kilometre if its price stands at Rs103.36 per litre.

“The use of LPG in automobiles can be possible only if the country has long-term supply contracts with other countries,” the official said, adding in case no such contracts were in place, LPG would not be available for the domestic sector after its consumption in vehicles.

Industry people are the view that LPG supply will increase after the start of full supply from Kunner-Pasakhi Deep field. Besides this, Byco refinery will produce a significant quantity of LPG to cater to the domestic market.

REGARDS

FAYYAZ AHMED KHAN

29/08/2013

LPG AND CNG
Product Differentiation

LPG and CNG are all viable fuels with varying levels of infrastructure.

While LPG and CNG are both used in the automotive sector, there are considerable differences:

Emissions> CNG Average 70% lesser than petrol / diesel AND LPG Average 90% lesser than petrol / diesel
Power> CNG Reduces by about 20% as gas carburetors are often used AND LPG Same as petrol / diesel vehicles
Volume of Fuel tank > CNG Large tanks avg. 6 times that of petrol / diesel for same mileage: additional weight and eats up boot space AND LPG One third that of CNG
Filling time > CNG Many times compared to petrol / diesel depending on quality of compressor AND LPG Same as petrol / diesel
Conversion cost > CNG Taxi / car: PKR 25,000 AND LPG Taxi / Car: PKR 6,000 – 14,000
Safety >CNG High pressure can be a safety concern AND LPG 5-7 bar, comparable to conventional fuel.
Handling >CNG Requires special equipment AND LPG Ease in handling as close to liquid fuels
Dispensing >CNG Requires special equipment. A compressor alone costs PKR 20 million and a complete station could cost up to PKR 30 million AND LPG Average LPG stations cost PKR 3.5 million only.
Transportation >CNG Dependent on pipeline networks AND LPG Easily transported by road tankers like liquid fuels.
Distribution >CNG Dependent on pipeline networks AND LPG Supplies delivered by road tankers liquid fuels.
Network Establishment >CNG Longer lead time due to pipeline laying AND LPG Easy to develop, lead time of hardly three months for each facility
Initial investment in infrastructure>CNG Average USD 250,000 and upwards for just a dispensing station with compressor of suitable capacity AND LPG Average USD 65,000
Global experience> 4,600,000 vehicles AND LPG Over 9 million – 2 times more vehicles on road in cities across the world.

REGARDS

FAYYAZ AHMED KHAN

ADMIN INCHARGE
MNA ENERGY

14/03/2013

LPG has been used as Auto Gas for a number of years in many countries around the world. In most countries the Government has played an instrumental role in legalizing its usage as an auto fuel and has primarily been driven by the following factors:

• Its clean burning properties with very low amounts of pollutant
• Its relatively lower price to Petrol and other fuels and
• Its relative ease, with which it can be transported.

Pakistan has witnessed an increase in the production of LPG by over 60% in the last 12 months. This has enabled LPG to become available in all those areas where previously due to a shortage of supply the product was not available. Unlike most countries, Pakistan has an extensive natural gas pipeline network covering most of the major cities.

However there are still a number of cities and villages that do not have access to natural gas and therefore resort to using other fuels. These include bio mass, wood, kerosene and LPG.

The current producer price of LPG coupled with the marketing companies’ and distributors’ profit margins make it unaffordable to the common man living in the village. This is not to say that the increased production has not benefited these people. More LPG is being consumed today in areas where there is no natural gas, than was the case a year ago.

However; due to its relative inexpensiveness to petrol, more and more LPG is being consumed by the auto sector in Pakistan. The primary users in this sector are the rickshaws and taxis. This paper will present a detailed comparison of fuel costs, but suffice it to say that a user of LPG can travel the same distance as that of a user of Petrol in about less than half the cost.

With the increase in production of LPG and the recent hike in petrol prices the auto sector accounts for more than half the consumption of LPG in Pakistan. Attempts by the authorities to curb its usage have always been met with severe resistance from its users and to date have not been successful. This fact is not surprising because the common man driving a rickshaw or taxi can no longer afford petrol at the current prices. And with the petrol prices set to rise, this trend will only increase.

An alternative to LPG in the auto sector which the Government has been promoting is CNG. As compared to LPG, a CNG kit is three times more expensive that an LPG kit. The former costs Rs. 30,000 whereas the latter about Rs. 10,000. Secondly, in terms of mileage and engine performance CNG is inferior to LPG. (A detailed comparison follows). Most importantly, its availability is limited to the availably of natural gas pipeline.

Let me clarify at the outset that this paper is not promoting LPG in favor of CNG. The latter has been of great economical and environmental benefits to both the Government and the masses. This paper is only recommending that LPG should be used in conjunction with CNG and the choice of fuel should be left to the consumer. This is the case in many countries; including India and China.

Pakistan is a country well endowed with natural gas reserves and in order to reduce dependence on imported crude it is necessary for the Government to promote fuels such as CNG. But since its availability is limited and it is more expensive than LPG; not everyone has access to it.

Admin Incharge
Fayyaz Ahmed Khan
MNA Energy

01/02/2013

30/01/2013

24/01/2013

24/01/2013

MNA staff and all workers

23/01/2013

LPG HISTORY IN PAKISTAN

LPG was originally introduced in Pakistan in 1966. Initially, the Pakistan LPG market was a fully regulated one, where supply was restricted to only indigenously produced LPG and where the Government of Pakistan controlled pricing. A sea change occurred in 1994-1995, when imports were allowed, leading to complete industry deregulation by April 2001.

Although LPG’s share in the country’s energy requirements has been nominal to date, over the past decade, growth by volume has been at a rate of around 14% per annum. This is expected to continue growing significantly with increasing LPG supplies available from both local and imported sources.

23/01/2013

MNA ENERGY SAFETY AND STANDARDS

When properly handled and used, LPG is a safe fuel. Characteristics of LPG include low flammability range, high ignition temperature, a fuel under pressure requiring sealed containers and fuel systems, immediate vaporization upon exposure to the atmosphere, a foul- smelling, non-poisonous odor in case of a leak, and non-toxic. These inherent characteristics of the fuel itself help make it possible to experience all the benefits without incident.

As with all forms of energy, LPG requires proper handling and use in order to avoid accidents. During its more than 80 years of providing heat, light and power, LPG can rightfully claim an excellent safety record. However, it is essential that those properly trained in safe practices handle LPG. Likewise customers should be aware of the basic characteristics of the fuel and how equipment operates. Of utmost importance is knowing what to do in case of an emergency. Education and awareness precludes incidences and their consequences. Those handling and using LPG should be properly trained. LPG standards and codes embody the technical expertise of a mature industry that constantly seeks to improve its safety performance within all sectors of the industry.

Mna Energy is committed to ensuring that in handling LPG, it follows LPG codes, standards, storage, transportation, use and handling practices of the fuel and related equipment