ISLAMABAD: The Board of Sui Southern Gas Company Limited (SSGC) has approved the reactivation of the Jamshoro Joint Venture Limited (JJVL) LPG plant, which has been non-operational for more than four and a half years.
The decision is expected to help ease supply constraints in the liquefied petroleum gas (LPG) market and reduce reliance on costly imports.
According to informed sources, the Special Investment Facilitation Council (SIFC) played a key role in facilitating a settlement agreement between SSGC and JJVL. The agreement, officially endorsed by the SSGC Board, is a major step toward restoring the plant’s operations.
The sources revealed that the prolonged closure of the JJVL plant resulted in an estimated financial loss of Rs. 96 billion. Under the newly agreed terms, SSGC will receive 66% of the plant’s revenue—up from the previous 57.54%—while JJVL is now required to supply 25% of its LPG production to SSGC at OGRA-notified prices.
Both SSGC and JJVL have appointed focal persons to finalize the details of the agreement, which is expected to be completed within a week. While the installed capacity of JJVL’s LPG plant exceeds 500 metric tons, actual production will depend on the composition of the gas supplied to the facility. Industry insiders estimate that it will take approximately 40 days to resume full LPG production.
Interestingly, sources noted that Petroleum Minister Musadik Malik has shown little interest in the revival of local LPG production from JJVL’s plant. Instead, they credited the SIFC for taking the initiative and making concerted efforts to resolve the longstanding issues that led to the plant’s forced closure. Due to SIFC’s intervention, the SSGC Board, in its meeting on Thursday, approved the resumption of LPG production at JJVL’s facility.
With the revival of local LPG production, Pakistan is expected to see a reduction in its import bill while also addressing the ongoing LPG supply shortfall, sources added.
When contacted, Chairman JJVL, Iqbal Z. Ahmed, stated that despite the prolonged shutdown, the company continued to pay salaries, provide Ramadan packages, and distribute Eid gifts to all its employees. He emphasized that not a single staff member was laid off during the closure period.
Responding to queries, Fasih Ahmed, Director of JJVL, confirmed that the SSGC Board has approved the resumption of gas supplies to JJVL under terms negotiated transparently with SIFC’s facilitation. He explained that the new agreement, based on a previously Supreme Court-endorsed contract, strengthens Pakistan’s energy security, reduces reliance on costly LPG imports, and fosters a competitive market.
Despite a challenging four-and-a-half-year shutdown, JJVL maintained its facility and workforce, reaffirming its commitment to the country’s energy sector. Fasih Ahmed further noted that SIFC’s intervention was instrumental in overcoming bureaucratic hurdles, paving the way for JJVL to resume production within 45 to 60 days.
He added that this development sends a strong signal to investors, reinforcing confidence in Pakistan’s economic landscape.
Meanwhile, despite repeated attempts to obtain an official response, the SSGC spokesperson did not provide any comments on the latest decision of the SSGC Board regarding JJVL’s operational resumption until the filing of this story.
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