SIFC endorses SSGC-JJVL revenue-sharing deal to make LPG plant operational in 45 days

ISLAMABAD: In a positive development, Special Investment Facilitation Council (SIFC) that met here on Wednesday formally endorsed the agreement between Sui Southern Gas Company Limited (SSGC) and Jamshoro Joint Venture Limited based on a revenue-sharing formula to make JJVL LPG-NGL extraction plant operational in the next 45 days till July 31.

The SIFC has given the nod to the agreement based on revenue sharing at 66:34 ratio (SSGC: JJVL) with 25 per cent LPG share for SSGC based on Ogra-notified producer price. This will ensure Rs2 billion per annum to SSGC.

“The top management of Sui Southern after approval from its board submitted to the SIFC the agreement with JJVL for endorsement purposes. The SIFC meeting formally endorsed the agreement and its implementation mechanism. JJVL and Sui Southern have initialed the agreement but it will be properly signed once the minutes of the SIFC are issued,” a senior official of the Petroleum Division who was part of the SIFC meeting told The News.

To a question, the official said the SSGC management wanted the SIFC endorsement to the agreement to avoid any kind of National Accountability Bureau (NAB) investigation in the future.