Senior journalist Syed Khalid Mustafa has reported on the Sui Southern Gas Company Limited (SSGCL)’s Board of Directors approving an agreement with Jamshoro Joint Venture Limited (JJVL), paving the way for the LPG and NGL extraction plant to provide locally produced fuel to domestic consumers.
Speaking with Sohail Iqbal Bhatti, the senior journalist has noted that the JJVL plant at Jamshoro, Sindh is the largest LPG extraction facility in Pakistan. Describing the project as “very important,” he has observed that it holds significant importance in import substitution. Recalling the balance of payments crisis Pakistan faced in 2022-23, with dwindling foreign exchange reserves making it difficult to secure letters of credit, he reports that the situation prompted the government to revisit the import of commodities to avoid depletion of the country’s foreign exchange reserves.
“At the time, the Special Investment Facilitation Council (SIFC) realized that we have a plant that, if made operational, can prove very beneficial and reduce the vulnerability of balance of payments,” he says. Noting the SIFC had then taken the initiative and told SSGC to resolve all pending issues with the JJVL management, he reports that SIFC fully endorses the project. Earlier this week, he reports, the SSGC Board formally approved the agreement initialed between JJVL and SSGC, passing this material information to the Stock Exchange.
“This is a major development,” the senior journalist stresses, noting the plant has been shut down since June 2020 and the losses incurred to the national economy in importing LPG rather than utilizing domestic supplies have crossed Rs. 100 billion.
Mustafa has said he expects the JJVL plant to resume production within 1-2 months. The initial target, he says, is to resume production to 250MT/day before slowly expanding to the optimum daily level of 400MT. Once fully operational, he notes, the project would save $150 million in foreign exchange annually.
Hailing the development, the senior journalist has said the local production of LPG will not only reduce prices for consumers, but also decrease the overall basket price. “This will be very beneficial for the economy overall,” he says.