Closure of JJVL LPG extraction plant: Petroleum Division calls stakeholders’ crucial meeting today

ISLAMABAD: In a positive development, the Petroleum Division has convened a crucial meeting today (Wednesday) over the long drawn closure of JJVL (Jamshoro Joint Venture Limited) LPG and NGL extraction plant since June 20, 2020. It would find out a way forward to make the plant operational again prior to the advent of next winter season.

Managing Director Sui Southern, representatives of AF Ferguson & Company (AFFCO), CEO of JJVL and senior officials of the energy ministry would attend the meeting, a senior official at the Petroleum Division told The News.

The AF Ferguson & Company (AFFCO), appointed as supervisor by the Supreme Court in its final determination report, has already established the commercial and financial viability for SSGC to supply gas to the LPG plant. And more importantly, the consultant’s report has found that setting up a new LPG/NGL extraction plant by SSGC, on current gas available, is unviable.

However, despite the AFFCO report, the JJVL plant still awaits the nod of Sui Southern Gas Company (SSGC) for supply of gas. The SSGC management defied the AFFCO report and breaching its own undertaking given to SC and JJVL, it preferred to continue to import LPG but remained unmoved in making the JJVL operational.

The SSGC on June 20, 2020 had closed down the gas supply to JJVL, which is capable of producing up to 500 MT of LPG and 150 MT of NGL per day and refused to extend the terms of agreement despite the letter from the-then acting MD Mohammad Amin Rajput, written on May 30, 2020 to JJVL management, saying that it will extend the agreement after getting final determination from AF Ferguson &Co. (AFFCO), who are supervising the JJVL as per the decision of the Supreme Court.

However, by June 20, 2020, AFFCO could not furnish its final report. Now under the latest scenario, AFFCO submitted somewhere in March 2021 with SC, SSGC, and JJVL its final report on LPG plant, saying making the plant operational is beneficial to the SSGC. More importantly, the consultant’s report has found that setting up a new LPG/NGL extraction plant by SSGC, on current gas available, is unviable.

The JJVL management wrote letters to SSGC and SAPM on Petroleum Tabish Gauhar, asking for restoration of gas to LPG extraction plant, arguing that AFFCO report had established the commercial and financial viability for SSGC to supply gas to JJVL plant.