LPG production: JJVL seeks immediate resumption of supplies from SSGC

ISLAMABAD: Jamshoro Joint Ventures Limited (JJVL) has asked the government to direct Sui Southern Gas Company Limited (SSGC) to immediately resume gas supplies for local production of Liquefied Petroleum Gas (LPG) at JJVL facilities.  

In a letter to Special Assistant to Prime Minister on Petroleum Division Nadeem Babar, JJVL requested the Ministry of Energy (Petroleum Division) to call a meeting of the SSGC Board and allow JJVL to make a presentation on the matter so that a fair and transparent decision could be taken in the national interest. 

Similarly, JJVL has requested the government to direct SSGC to resume gas supplies with immediate effect in line with the Supreme Court’s validated agreement on an ad hoc basis. “In addition, SSGC must immediately submit all required data to A F Ferguson and Co for final determination of revenue sharing between SSGC and JJVL as had been directed the Supreme Court in December 2018.” 

Moreover, the letter stated, SSGC should bring on record the report of their consultants who JJVL understands has recommended that it is not viable for SSGC to set up its own LPG plant and that it should continue arrangements with JJVL. “The SSGC should advise the ministry if it has any alternative facilities available for gas processing for local LPG/NGL production.”

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According to a letter of JJVL, SSGC on June 20, 2020, had informed JJVL that it shall not be extending the Supreme Court’s validated agreement of December 29, 2018, for local LPG and LNG production at JJVL’s facilities.  

“The sudden discontinuation of 300 metric tonnes of daily LPG production came at a time when the country was already reeling from an oil crisis,” it maintained. “JJVL production had been catering to the energy needs for over 750,000 homes across the country. Immediate job losses as a result of SSGC’s decision shall now follow.”

According to JJVL, the energy ministry through different letters instructed that SSGC not only continue local LPG production but also to enhance it. However, the SSGC decision of June 20 contravened these instructions.

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Ahmad Ahmadani
The author is an investigative journalist. He can be reached at [email protected]

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