Sui Southern Gas Company Limited (SSGC) announced the approval of a key agreement between SSGC and Jamshoro Joint Venture Limited (JJVL) regarding the extraction of liquefied natural gas (LPG) and natural gas liquids (NGL), according to a filing at the Pakistan Stock Exchange (PSX) on Friday.
The agreement, approved by the Board of Directors (BoD) in a meeting held on 17 July 2025, follows a prior endorsement from the Special Investment Facilitation Council (SIFC) based on the terms and conditions agreed between the two parties.
“SSGC Board of Directors (BoD) in its meeting held on 17 July 2025 at SSGC Head office, has approved the initial agreement between Sui Southern Gas Company Limited (SSGC) & Jamshoro Joint Venture Limited (JJVL) for the Extraction of LPG & NGL. This agreement has already been endorsed/approved by the Special Investment Facilitation Council (SIFC) based on the terms and conditions agreed between the parties,” read the notice sent to the PSX.
On Tuesday, the Jamshoro Joint Venture Limited (JJVL) 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 the 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.
