Steenkolen Handels Verccniging (SHV), based in The Netherlands, has planned an initial investment of $100 million in Pakistan's liquefied petroleum gas market.
The company said its investment in Pakistan will reach $25 million by yearend. That figure includes acquiring a local LPG company, land, and filling plant equipment.
SHV said it has acquired supplies of 112 tonnes/day of LPG from Pak-Arab Refinery Co. (Parco) through competitive bidding.
The company will market Parco gas under the brand name of Pearl Gas. SHV is gearing up for receiving and distributing the Parco LPG allocation, expected to begin in September with the commissioning of Parco's mid-country refinery near Multan.
SHV entered the Pakistani market in 1996 by investing in a local LPG marketing company.
The proposed deregulation of the LPG market and privatization of public entities in the energy sector will provide the impetus and environment that is now needed to generate further investment, says Patrick Gregory, chief executive and vice-chairman of SHV. He said SHV Group is the largest private business in the Netherlands with over $10 billion in sales worldwide in 1999.