The Executive Committee (EC) of the Special Investment Facilitation Council (SIFC) has directed Sui Southern Gas Company Limited (SSGC) and Jamshoro Joint Venture Limited (JJVL) to finalise and sign a revenue-sharing contract by January 15, 2025.Â
The agreement is aimed at restarting the JJVL LPG-NGL extraction plant, which has been non-operational since June 2020.
According to a news report, the Executive Committee of the SIFC, during its meeting on December 11, 2024, highlighted that the plant’s closure has caused an annual loss of $108 million, amounting to a total foreign exchange loss of $432 million over the last four years.Â
Senior officials from the SIFC Secretariat and the Petroleum Division emphasised the urgent need to operationalise the plant to curb further economic losses.
As per the directive, the revenue-sharing agreement, once signed, will be presented to the SSGC board for approval. The plant is expected to resume production within 45-60 days following the agreement. Based on a formula already endorsed by the Supreme Court of Pakistan, the resumption plan includes the Federal Investigation Agency (FIA) concluding its inquiry into JJVL operations. A progress report on the inquiry will be shared by January 31, 2025.
Additionally, the pending undisputed dues owed by JJVL to SSGC must be cleared before the gas supply to the plant resumes. The finalized agreement and its compliance will be submitted to the SIFC Secretariat, which will forward it to the EC-SIFC for endorsement. The Petroleum Division has been tasked with reporting progress to the SIFC by January 20, 2025.
This initiative is expected to reinstate the plant’s production of liquefied petroleum gas (LPG) and natural gas liquids (NGL), offering a significant boost to the country’s economy while addressing the prolonged financial losses.
