Cabinet gives go-ahead to resume operations of JJVL

Aftab Ahmed

Islamabad: The cabinet has ratified the economic coordination committee (ECC) decision to resume the operation of Jamshoro Joint Venture Limited (JJVL). It will kick off liquefied petroleum gas (LPG) production to increase domestic supply and reduce imports.

LPG imports had increased following the discontinuation of an LPG agreement between JJVL and Sui Southern Gas Company (SSGC) by the board of directors of SSGCL that led to disappearing 15 percent of local LPG production from the system.

Earlier, the Economic Coordination Committee (ECC) had approved to resume of the operation of JJVL.

Petroleum Division proposed that JJVL should resume the production of LPG to increase domestic supply and reduce reliance on imports.

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LPG imports had increased following the discontinuation of an LPG agreement between JJVL and Sui Southern Gas Company (SSGC). The public gas utility also floated a tender for importing 2,500 tons of LPG in one month. They, in their earlier practice of importing around 1,500 tons in a month.

JJVL was producing 300 to 500 tons of LPG per day. LPG accounts for about 1.2% of the primary energy supply in the country. The low share is due to supply constraints.

Only 24% of consumers are provided with natural gas, and the remaining 76% rely on LPG, kerosene oil, wood, and other fuels. Annual LPG consumption is estimated at 1.06 million tons.

JJVL was producing 300 to 500 tons of LPG per day. LPG accounts for about 1.2% of the primary energy supply in the country. The low share is due to supply constraints.

Only 24% of consumers are provided with natural gas, and the remaining 76% rely on LPG, kerosene oil, wood, and other fuels. Annual LPG consumption is estimated at 1.06 million tons.

The Petroleum Division believed that SSGC ought to consider restarting production at JJVL at terms that were not detrimental to its interests until the Supreme Court’s final decision.