ISLAMABAD: The Special Investment Facilitation Council (SIFC) has directed Jamshoro Joint Venture Limited (JJCL) and Sui Southern Gas Company Limited (SSGCL) to reach an agreement by January 15, 2025 to restart gas supply to JJVL.
As per WG decision (held at SIFC on Oct 1, 2024), the Petroleum Division was instructed to ensure the conclusion of beneficial commercial agreement for both SSGC and JJVL. However, despite numerous meetings, the matter couldn’t be resolved.
Moreover, Petroleum Division maintains that any decision on resumption of gas supply to JJVL should be subject to the clearance of old outstanding dues.
SIFC to take up critical energy sector issues today
The Executive Committee (EC) of the SIFC observed that due to closure of JJVL plant, there is a loss of approximately $108 Million per annum of foreign exchange. The plant is available for production but lying idle due to disconnected gas supply.
The meeting decided that both parties to ensure the following; (i) agreement between JJVL and SSGC (mutually agreed sharing percentage) be finalized and approved by the SSGC Board till January 2025.
The gas supply would be immediately resumed after signing the agreement;
(ii) resumption of JJVL plant as per Revenue Sharing Formula (may be used as benchmark) already endorsed by the Supreme Court of Pakistan, based on agreement between parties.
The FIA to conclude the enquiry on JJVL matter on high priority. Progress report be shared by 31st January 2025;
(iii) pending undisputed dues payable to SSGC by JJVL will be cleared before resumption of gas supply to the Plant; and
(iv) the agreement and its compliance would be presented to IC-SIFC, which would subsequently place it before EC-SIFC for information/endorsement.
Copyright Business Recorder, 2024
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