Sui Southern Gas Company (SSGC) says it is considering plans for the establishment of a liquefied petroleum gas (LPG) extraction plant near Badin. Union Texas Petroleum (UTP), which owns and operates the Badin block, has submitted a proposal to SSGC to build the plant on a joint venture basis. SSGC says that the joint venture may also include Occidental Petroleum Corporation of the US.

If the project is approved, contracts will be awarded for plant technology, construction and installation. The plant would have a capacity of about 175 tonnes a day of LPG and cost an estimated $30 million.

SSGC's LPG activities are expected to be restructured prior to the privatisation of the company. LPG and other non-core activities, including meter manufacturing and civil construction work, are to be formed into separate units and may be sold prior to the main sale of a 26 per cent stake with management control. The Privatisation Commission is still waiting for the government to approve the formation of the Gas Regulatory Authority before selling the two gas distribution companies, SSGC and Sui Northern Gas Pipelines. Both sales are scheduled for completion by the end of June 1998 (MEED 30:5:97).