SIFC asks SSGC, JJVL to sign contract to restart LPG extraction plant

ISLAMABAD: The Executive Committee (EC) of Special Investment Facilitation Council (SIFC) has directed Sui Southern Gas Company Limited (SSGC) and Jamshoro Joint Venture Limited (JJVL) to sign the revenue-sharing contract by January 15, 2025 to operationalise the JJVL LPG-NGL extraction plant.

This decision was taken by the SIFC’s EC meeting on December 11, 2024. It was observed that the country is suffering an annual loss of $108 million since the JV LPG-NGL extraction plant is non-operational since June 2020. The total foreign exchange loss in the last four years until June 2024 amounted to $432 million, senior officials of the SIFC Secretariat and Petroleum Division told The News.

“Keeping in view the bitter facts, SIFC’s Executive Committee asked JJVL and SSGC to clinch the revenue sharing agreement followed by SSGC board approval by January 15, 2025. The JJVL plant will take 45-60 days to resume production of LPG and NGL,” the sources said. “Resumption of JJVL Plant in line with the Revenue Sharing Formula (may be used as a benchmark) has already been endorsed by the Supreme Court of Pakistan. The Federal Investigation Agency has also been asked to conclude the JJVL inquiry. The progress report will be shared by January 31st, 2025. Pending undisputed dues payable to SSGC by JJVL will be cleared before the resumption of gas supply to the plant.” The sources said the agreement and its compliance would be presented to the SIFC Secretariat, which would subsequently place it before EC-SIFC for information and endorsement. The progress by the Petroleum Division will be reported to SIFC by January 20, 2025.