Islamabad: The board of SUI Southern Gas Company Limited (SSGC) has approved the re -mobilization of the Jamshoro Joint Venture Limited (JJL) LPG plant, which has been non -operational for more than four and a half years.
This decision is expected to help reduce supply barriers to the liquid petroleum gas (LPG) market and reduce dependence on expensive imports.
According to informed sources, the Special Investment Facility (SIFC) played a key role in helping the agreement reached between the SSGC and the JVL. A formal verification by the SSGC Board is an important step towards restoration of plant works.
Sources have revealed that the estimated financial loss as a result of the prolonged closure of the JJVL plant is Rs 500. 96 billion. Under the new unanimous terms, SSGC will receive 66 % of the plant’s income-which is more than the last 57.54 %-when JJVL now needs to provide 25 % of its LPG production to SSGC to SSGC at OGRA prices.
Both the SSGC and the JJL have appointed focal persons to finalize the details of the deal, which will be expected within a week. Although the JJL LPG plant’s capacity is more than 500 metric tons, the actual production will depend on the construction of the gas provided by this facility. Industrial sources estimates that it will take about 40 days to resume full LPG production.
Interestingly, sources noted that Minister for Petroleum Mossadak Malik has shown little interest in restoring local LPG production from JJVL plant. Instead, he relied on concrete efforts to take the SIFC and solve long -standing problems, which led to the forcible closure of the plant. Due to the intervention of the SIFC, the SSGC Board approved the resumption of LPG production at JJVL facility on Thursday.
Sources added that with the restoration of local LPG production, Pakistan is expected to see a decrease in its import bill while also resolving the ongoing LPG supply shortage.
Ever since contacted, Chairman JJVL, Iqbal Z Ahmed said that despite the long shutdown, the company provides salaries, providing Ramadan packages, and distributing EID gifts to all its employees. He emphasized that not a single staff member was discharged during the closure period.
In response to the questions, JJVL director, Fasih Ahmed, confirmed that the SSGC board has approved the resumption of gas supply to JJVL, which has been transparently discussed with the convenience of the SIFC. He explained that the new agreement, based on the previous Supreme Court -led agreement, strengthens Pakistan’s energy safety, reduces dependence on expensive LPG imports, and promotes competitive market.
Despite the four -and -a -half -year shutdown, JJVL maintained its convenience and manpower, and endorsed the country’s energy sector. Fasiya Ahmed added that SIFC’s intervention was important in overcoming the bureaucratic barriers, which paved the way for JJVL to resume production within 45 to 60 days.
He added that this development sends a strong signal to the investors, which reinforces trust in Pakistan’s economic landscape.
Meanwhile, despite repeated attempts to get official response, a SSGC spokesman did not comment on the latest decision of the SSGC board about JJVL’s operational rehabilitation until filing this story.
