Mecom Gas Pvt Ltd is considering a $20 million initial public offering (IPO) to expand its LPG storage capacity as Pakistan faces rising fuel price volatility and growing energy supply risks.
According to a Bloomberg report, the company is in talks with Arif Habib Limited for a potential listing on the Pakistan Stock Exchange.
The funds raised from the IPO would be used to build a new LPG storage facility with a planned capacity of 3,000 tonnes. The project is aimed at helping the company handle supply disruptions and sudden price swings more effectively.
The expansion comes as Pakistan’s energy sector faces renewed pressure from rising global oil and gas prices, along with geopolitical instability in the Middle East. Pakistan remains heavily reliant on imported fuel, making the country vulnerable to external supply shocks and international price surges.
Mecom Gas CEO Kamran Afzal said LPG prices have doubled over the past six months, forcing companies to rethink storage and supply strategies.
He noted that recent market disruptions exposed major weaknesses in Pakistan’s fuel reserve capacity and accelerated the company’s plans to expand storage infrastructure.
Energy sector participants have repeatedly warned that Pakistan’s LPG storage system is too limited for a country dependent on imported energy. Larger storage facilities would allow distributors to stockpile fuel during stable periods and reduce the impact of sudden shortages or price spikes.
The planned 3,000-tonne facility would also strengthen Mecom Gas’ distribution network and improve supply reliability for consumers across the country.
Company officials believe Pakistan’s LPG storage capacity needs to more than double to create adequate reserves and stabilize the market during periods of global uncertainty.
The development comes as Pakistan’s import bill remains under strain. The country’s current account slipped back into deficit in April after higher imports, particularly energy imports, outweighed earlier gains recorded during the fiscal year.
