The LPG Industries Association of Pakistan has demanded of the government to restore operations of Asia’s largest LPG processing plant, the Jamshoro Joint Venture Limited (JJVL), at the earliest as its closure has not only reduced the local LPG production, thus creating a significant shortfall, but has also resulted in the hike of LPG prices by 172 percent just in two years.
Aided by an increase in international prices of the fuel, LPG prices in the local market have hiked to Rs 247 per kilogram from only Rs 90/kg two years ago.
In a letter to Prime Minister Shehbaz Sharif, the founder chairman of LPG Industries Association, Irfan Khokhar, said the closure of JJVL plant from June 21, 2020 to March 31, 2022 (21 months) inflicted a loss of about Rs 50 billion to the national exchequer.
The willful damage to the country’s LPG industry, shareholders of the Sui Southern Gas Company Limited and to the national exchequer was due to incompetence on the part of SSGC management, he said.
The letter pointed out that despite instructions from the Ministry of Energy (Petroleum Division) on October 1 and November 9, 2021, SSGC has yet to resume the supply of gas to JJVL for LPG production.
Appreciating what he termed the premier’s efforts for prosperity of the poor people of Pakistan, Mr Khokhar lauded the PM’s bold decisions that he took in the past for the progress and benefit of Pakistan.
“You have been delivering to poor people of Pakistan and LPG Industries Association of Pakistan hopes that this dedication for the poor will be continued by your government in future as well,” he said.
JJVL can contribute significantly to the LPG industry by producing 10,000MT to 12,000MT of fuel every month, catering to the demand of 750,000 houses while providing employment opportunities to more than 5,000 people.
It was established at a cost of Rs 40 billion, with 50 percent foreign investment, and its closure has arguably discouraged foreign investors and also adversely affected the country’s GDP.
The letter added that JJVL, being the biggest LPG production facility in Asia, is non-operational because of the negligence and arrogance of SSGC since July 21, 2020 and poor people of Pakistan are suffering as a result as they have been bearing the extra burden of LPG imports.
“We request you to please restore operations of JJVL on urgent basis so that it can play its role in maintaining supply chain of LPG in Pakistan by reducing LPG shortfall in the country by which National Exchequer will also get benefit of Billions of Rupees annually,” added Mr Khokhar in his letter.
