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Wednesday December 07, 2022

PM moved for restart of Jamshoro LPG plant

October 02, 2022

ISLAMABAD: Sindh has sought Prime Minister's intervention for restarting Jamshoro Joint Venture Limited (JJVL), an LPG (liquefied petroleum gas) and NGL (natural gas liquids) extraction plant, to provide these cheaper fuels to the flood-hit people of the province, The News has learnt.

The dry wood and dung, which are normally used during normal days in rural Sindh for cooking purposes, are no longer available as these sources of fuel have been washed away in the flood.

Most of the livestock also got washed away so there will be no manure available to make dry dung cakes, traditionally used as fuel in rural areas for cooking food in a domestic hearth (Chulha).

The country has the JJVL LPG plant facility in Jamshoro, which can be used to cater to the energy needs of the flood-stricken people for both cooking and heating purposes during the forthcoming winter season.

This all has been pleaded in a letter from Chief Minister (CM) Sindh, Syed Murad Ali Shah, written on September 30, 2022 to Prime Minister of Pakistan Shehbaz Sharif.

Sindh CM also mentioned in the letter, the copy of which is available with The News, that the JJVL plant is non-functional since June 2020 due to the non-supply of gas from Sui Southern Gas Company Limited (SSGCL).

“In the aftermath of the devastating floods that have wreaked havoc in most parts of the province, one of the urgent requirements for people is the availability of fuel for cooking and the operationalisation of the LPG plant can play a pivotal role in providing fuel,” CM Shah argued.

“Dry wood which is commonly used may no longer be easily available to them. The JJVL plant is capable of serving 25,000 homeless people per day, who have no fuel for cooking.”

In the letter, the Sindh government chief executive urged the Prime Minister to direct the Petroleum Division and SSGC to positively resume the gas supply to the plant.

An LNG crisis, during the forthcoming winter, is looming over the country, as Pakistan LNG Limited (PLL) has so far failed to procure any spot cargo from the international market. All the LNG cargoes in the open market have been purchased by rich European countries at high prices as Russia has almost stopped gas supply to Germany and other European countries. The European countries along with the US and Japan have slapped sanctions on Russia because of its invasion of Ukraine.

So, the country has to rely on 8-9 term cargoes (800-900mmcfd) every month meaning eight cargoes from Qatar and one from ENI against the purchased capacity by the government to import 12 cargoes (1200 mmcfd) LNG with 300-400 mmcfd shortfall in imported gas.

According to the latest working of the petroleum division, the gas demand of Sui Southern in Sindh and Balochistan is at 1200-1300 mmcfd in the coming winter season, but it will be available at 900 mmcfd (850 mmcfd of system gas and 75 mmcf LNG). This means that the gas deficit in the Sui Southern system would be around 300-400 mmcfd.

However, for Punjab and KPK, the gas deficit in Sui northern system would go up to 750 mmcfd in January, which will start with 250 mmcfd in November and increase up to 600-700 mmcfd in December.

The system gas available for Punjab and KP will be 790 mmcfd and LNG 800 mmcfd.

The government is trying to get more gas from Mari gas field, which will increase from 30 mmcfd to 110 mmcf in the

winter season. Under this scenario, the JJVL plant, if made functional, can play an important role in minimizing the gas crisis in the country.

“Once JJVL’s LPG extraction plant comes on stream, it will start catering to the energy needs of over 500,000 homes across Pakistan.

And this will also help contain the LPG prices that have surged a lot mainly because of the huge deficit of piped gas (local gas and RLNG) in the country,” the letter stated.

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