Business

The cabinet gives go-ahead to resume operations of JJVL to boost LPG production

Aftab Ahmed

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

LPG imports had increased following 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 per cent of local LPG production from the system.

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

Petroleum Division had proposed that Jamshoro Joint Venture Limited (JJVL) should resume production of liquefied petroleum gas (LPG) to increase domestic supply and reduce reliance on imports.

LPG imports had increased following discontinuation of an LPG agreement between JJVL and Sui Southern Gas Company (SSGC). The public gas utility had floated a tender for the import of 2,500 tons of LPG in one month compared to the 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 primary energy supply in the country. The low share is due to supply constraints.

Only 24% 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 primary energy supply in the country. The low share is due to supply constraints.

Only 24% 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 was of the view that SSGC ought to consider restarting production at JJVL at terms that were not detrimental to its interests until the final decision of Supreme Court.

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