By SKM
June 18, 2025
ISLAMABAD: In a positive development, Special Investment Facilitation Council (SIFC) that met here 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 in the next 45 days till July 31, 2025, a senior official told Exclusivewaves.com.pk.
The SIFC has given the nod to the agreement based on revenue sharing at 66:34 ratio (SSGC: JJVL) with 25% LPG share for SSGC based on Ogra-notified producer price. This will ensure Rs2 billion per annum to Sui Southern.
“The top management of Sui Southern after approval from its board submitted with the SIFC the agreement with JJVL for endorsement purposes. 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.” To a question, the official said that SSGC management wanted the SIFC endorsement to the agreement to avoid any kind of NAB investigation in the future.
“The JJVL LPG-NGL extraction plants was non-operational from June 2020 which inflicted a loss of Rs94 billion till January 2024 to the country’s economy which has swelled to over Rs100 billion as of June 2025. With the start of the JJVL plant, the country will save $150 million forex per annum which used to evaporate because of the LPG imports by Sui Southern LPG Company and JJVL plants will play a role as import substitution entity. “
The SIFC wanted to use the plant as an import substitution industry against LPG import and save precious foreign reserves being used for the import of liquid gas.
“From June 2020 till the SIFC took notice of JJVL plant’s closure, the country braved domestic LPG production loss of over 317,000 tons with domestic NGL production loss of over 127,000 tons. More importantly, the government has to face an additional burden of over $193 million because of the import of LPG to substitute for JJVL LPG production.”
In addition, the official said, the country also faced a loss of export earnings from NGL amounting to over $86 million. Ends
