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LPG Production at Jamshoro Plant Hits An Obstacle

Jamshoro Joint Venture Limited (JJVLproduction )’s of liquefied petroleum gas (LPG) has run into a block, forcing the nation to rely more on imports, according to Islamabad.

The Law Division has been waiting for a legal opinion on the continuation of a contract between JJVL and Sui Southern Gas Company (SSGC) since August 21, 2020.

A Supreme Court-approved arrangement allowed the LPG/NGL producing facility near Hyderabad to continue running. The agreement was valid through June 20, 2020, and it might be extended if both sides agreed to do so.

JJVL claimed that because SSGC refused to prolong the contract, daily output of around 400 tonnes of LPG and 120 tonnes of NGL ceased and had to be replaced by imports.

Because it was not profitable for the gas company, SSGC made provisions for not extending the contract.

Since that time, the JJVL plant has been shut down, which has decreased daily LPG production by around 250 tonnes.

After careful consideration of all relevant technical, commercial, and legal factors, SSGC’s board of directors decided not to extend the agreement, and on June 20, 2020, it informed the Petroleum Division of its decision.

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According to the statement, the agreement between SSGC and JJVL is a commercial one, and the board has full legal authority to make decisions that are in SSGC’s best interests.

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