SSGC admits private LPG deal may impact local gas supply

The Sui Southern Gas Company (SSGC) has acknowledged that its agreement with a private company for converting natural gas into liquefied petroleum gas (LPG) could affect gas supply to consumers. The admission was made during a meeting of the National Assembly Standing Committee on Petroleum, chaired by Mustafa Mahmood. 

Committee member Shahid Ahmed raised concerns over the contract with Jamshoro Joint Venture Limited (JJVL), noting that the country is already facing gas shortages. SSGC officials confirmed that the agreement would impact local gas availability, as Jamshoro Joint Venture Limited would convert gas into LPG and sell it to the private market. 

The committee directed SSGC to provide full details of the contract in the next meeting and questioned whether the agreement would further strain the company’s supply.

The panel also examined the deregulation of the petroleum sector, with committee member Shahid Khan highlighting Khyber Pakhtunkhwa’s natural resources. He inquired whether any surveys had been conducted to assess these reserves and requested detailed findings for the next session.

Officials briefed the committee on gas storage projects, stating that there is a need for such facilities in the country and that plans are underway to establish a new storage site. However, the committee recommended halting the project until its necessity is fully evaluated.

During the discussion, MNA Sardar Ghulam Abbas questioned previous claims about extensive gold reserves in Balochistan, stressing the need for verification before further exploration. 

The committee also expressed concern over the absence of the minister of state for petroleum from the meeting. The chairman noted that while the petroleum secretary was abroad, the minister should have attended the session.

Officials informed the panel that the Council of Common Interests (CCI) had proposed a formula for petroleum sector deregulation, allowing 35% of newly discovered gas to be sold to the private sector. They added that efforts to deregulate the industry are ongoing, but concerns remain, particularly from Sindh, which has raised the issue again in the CCI. 

The committee sought further clarification on the implications of deregulation, particularly its impact on provincial gas resources.