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ISLAMABAD: The Ministry of Energy (Petroleum Division), on Friday, directed the Sui Southern Gas Company Limited (SSGCL) to resume gas supply to the Jamshoro Joint Venture Limited (JJVL) (LPG Extraction Plant). In a letter, the Petroleum Division directed the SSGCL to consider supply of gas to JJVL for production of LPG/NGL on a day-to-day basis, which clear understanding that it may stop anytime, preferably until final SCP's order.

However, despite a lapse of considerable time the decision is yet to be implemented by the SSGCL. The Economic Coordination Committee (ECC) on August 12,2020 took this decision. The division emphasized that the country has to rely on LPG imports exerting pressure on the consumers in terms of high LPG prices and depletion of foreign exchange resources when the JJVL plant is available to contribute up to nearly 15 percent to the local LPG production.

"This is also against the government's policy to enhance the local LPG productions and make it more affordable for the common man," it added. The plant as producing over 200MT of LPG per day under the agreement endorsed by the SCP for the extraction of LPG and NGL at the JJVL plant. The LPG introduced at JJVL pant will not only help in import substitution but will also contribute in the foreign exchange through he exports of the NGL.

The matter of petroleum levy is sub judice and pending before the Lahore High Court, and Petroleum Division will request the office of the Attorney General of Pakistan for an early hearing to expedite a decision from the court in the matter.

Considering the deficit in the demand supply of natural gas in the country resulting into the shift of consumers to alternate fuel i.e. LPG as well as to enhance local supplies with a view to keep the price of LPG at affordable level, the SSGCL is directed to immediately enter into negotiation with JJVL on the agreeable terms of the old and new contract and make decisions on the resumption of gas supply in national interest.

Copyright Business Recorder, 2021

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