02122016Fri
Last update: Fri, 12 Feb 2016 08am

JJVL clarification

Jamshoro Joint Venture Limited (JJVL) denies in their totality the repugnant allegations levelled against it by a representative of Pakistan Economy Watch. The scurrilous allegations are false, malicious, and odiously and will fully ignorant of both the Supreme Court's Dec 4 judgement pertaining to JJVL as well as basic logic.

"JJVL invested $105 million-the largest investment ever made in Pakistan's LPG sector-to establish a state-of-the-art LPG extraction facility at Jamshoro, Sindh. Today, the replacement value of its assets is at least $170 million. With a propane recovery rate in excess of 95 percent, this facility is Pakistan's most efficient LPG production enterprise. JJVL's operational excellence has been recognised globally: it has been a finalist every year since 2006 at the Platts Global Energy Awards.

"JJVL made real the creation of new markets and the expansion of existing ones, ushering in greater competition in the LPG sector to the advantage of end-consumers. Since the commissioning of JJVL's facility in March 2005, it has created 80,000 jobs across the value-chain and meets the daily energy requirements of 2.5 million people across Pakistan. JJVL's contributions to the energy sector and the national exchequer are significant: from 2005 to date, it has provided Rs 34.88 billion to public sector Sui Southern Gas Company Limited-which did not invest any sum whatsoever in the project-and Rs 10.84 billion in taxes.

"Yet, the dubious PEW describes JJVL as "fake investors" and deceitfully claims that the "masses and exchequer" have been deprived of "billions." This self-proclaimed "independent forum on the world economy" also describes the matter of Khawaja Muhammad Asif v. the Federation of Pakistan as an "LPG quota scam" and disingenuously offers that the Dec 4 judgement will have a positive impact on Pakistan's investment climate.

"Like all other public and private sector LPG producers, JJVL markets product through agency agreements (not "quotas") with OGRA-licensed LPG marketing companies-in accordance with the law. The December 4 judgement is about the undisputed royalty mechanism that was agreed between JJVL and SSGC, to SSGC's great financial advantage; the word "quota" does not appear even once in the judgement, which, in fact, directs that supplies to JJVL's customer companies, all licensed by OGRA to undertake operations, must "continue unabated."

JJVL maintains that its agreement with SSGC was awarded competitively and transparently; it has complied strictly and faithfully at all times with the law, and shall continue to do so. JJVL shall exercise its legal rights to address the inaccuracies that form the foundation of the Dec 4 judgement and to resist the nationalisation of its facility.-PR

Copyright Business Recorder, 2013