ISLAMABAD: Mecom Gas Pvt Ltd is considering launching an initial public offering (IPO) on the Pakistan Stock Exchange to raise approximately $20 million for the development of a new liquefied petroleum gas (LPG) storage facility, according to a media report.
As reported by Bloomberg, the company is currently in discussions with Arif Habib Limited regarding advisory services for the proposed IPO.
Chief Executive Officer Kamran Afzal said the company plans to utilise the proceeds to establish storage capacity of around 3,000 tons to strengthen fuel reserves and improve supply stability.
The development comes at a time when Pakistan’s energy sector is facing increasing pressure amid regional tensions and disruptions linked to the ongoing conflict involving Iran. Pakistan remains heavily reliant on Gulf countries for oil and gas imports, making the country vulnerable to global price fluctuations and supply uncertainties.
The report noted that Pakistan’s current account returned to deficit in April as rising imports, particularly due to higher international oil prices, outweighed previous gains.
According to the Mecom Gas CEO, Pakistan’s LPG sector is also witnessing major disruptions, with LPG prices nearly doubling over the past six months.
Mr Afzal stated that the ongoing regional crisis has accelerated the company’s plans to expand storage infrastructure, which could help reduce market volatility and ensure better supply management.
He added that Pakistan’s LPG storage capacity needs to more than double in order to maintain adequate strategic reserves and improve energy security.
