The Sui Southern Gas Company (SSGC) on Friday submitted as “material information” to the Pakistan Stock Exchange (PSX) confirmation that its Board of Directors has approved an initialed agreement with Jamshoro Joint Venture Limited (JJVL) for the extraction of LPG and NGL.
In its submission, the SSGC has said its Board approved the agreement during a meeting on Thursday. “This agreement has already been endorsed/approved by the Special Investment Facilitation Council (SIFC) based on terms and conditions agreed between the parties,” it said. “Accordingly, an agreement will be signed between the parties for its formal execution and resumption of gas supply to JJVL Plant,” it added.
Senior journalist Syed Khalid Mustafa has reported on the development, noting it will provide locally produced fuel to domestic consumers and save the national exchequer $150 million in foreign exchange annually. Speaking with Sohail Iqbal Bhatti on Youtube, Mustafa noted the JJVL plant is the largest LPG extraction facility in Pakistan. Describing the project as “very important,” he has noted its significant importance in import substitution, especially in light of the balance of payments crisis the country faced in 2022-23.
The financial crisis that brought the country to the brink of bankruptcy led the SIFC to realize the benefits of the JJVL plant and it took the initiative for its resumption. Mustafa says the SIFC directed the SSGC to resolve all pending issues with the JJVL management.
Since the plant’s closure in June 2020, reports the journalist, the losses incurred to the national economy in importing LPG rather than utilizing domestic supplies have crossed Rs. 100 billion.
Mustafa has reported the plant would resume production within 1-2 months, adding it would initially produce 250MT/day before expanding to the optimum daily level of 400MT. Hailing the development, the senior journalist has said the local production of LPG will not only reduce prices for consumers, but also decrease the overall basket price. “This will be very beneficial for the economy overall,” he says.