JJVL’s $250mn LPG plant set to restart after five-year closure

Restart marks major step forward for investment revival amid lingering legal overhang

After a prolonged five-year shutdown marred by political turbulence and regulatory disputes, the Jamshoro Joint Venture Limited (JJVL) has announced that its flagship LPG and NGL extraction plant in Deh Shah Bukhari is preparing to restart operations, marking a significant milestone for Pakistan’s domestic energy supply chain.

The $250 million facility—widely regarded as one of the most technologically advanced in Pakistan’s gas infrastructure landscape—was once a cornerstone of the country’s liquefied petroleum gas (LPG) industry, catalyzing over a billion dollars in downstream investment and reducing the country’s reliance on imported fuels.

JJVL’s restart comes in the wake of years-long legal battles primarily concerning the allocation of gas by Sui Southern Gas Company (SSGC) and the constitutionality of the original contract under which JJVL extracted gas liquids from the Qadirpur field. As reported by Profit, the dispute revolved around whether the arrangement between JJVL and the state-owned SSGC was awarded transparently and whether it violated public procurement regulations.

Though the Supreme Court had once annulled the contract in 2013, subsequent legal reviews and arbitration rulings, including those by international courts, allowed JJVL to seek redress.

While regulatory clarity remains a work in progress, the resumption of operations is seen by analysts as a positive signal for investors seeking long-term certainty in Pakistan’s energy infrastructure sector. The move not only revives a major private sector investment but also promises to bolster the local LPG market at a time when global energy costs remain volatile.

Officials familiar with the matter noted that the decision to restart the plant reflects renewed confidence in the legal and political environment, coupled with strategic necessity. With indigenous gas reserves depleting and the import bill rising, maximising output from domestic sources has become an imperative.

JJVL’s modern facility, developed with U.S. engineering and capital, has long been held up as a model of private sector initiative in a state-dominated energy economy. Industry stakeholders now see its comeback as emblematic of the broader push toward reviving idle capacity, restoring investor trust, and boosting self-reliance in energy.

The company has yet to provide a firm operational date but confirmed that recommissioning processes are already underway. The resumption is expected to enhance LPG supply for both residential and industrial use, offering some relief amid a tightening energy outlook.

As seasonable rains soak the Qadirpur region, JJVL’s return may well represent the first sign of sunnier days ahead for energy-sector investment security in Pakistan.

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