SSGC greenlights revival of JJVL plant after 5-year shutdown

In a major breakthrough for Pakistan’s energy sector, the Board of Directors of Sui Southern Gas Company Limited (SSGC) has approved a long-awaited agreement with Jamshoro Joint Venture Limited (JJVL) for the extraction of liquefied petroleum gas (LPG) and natural gas liquids (NGL), paving the way for the revival of JJVL’s flagship plant in Deh Shah Bukhari after a five-year shutdown.

According to a filing submitted by SSGC to the Pakistan Stock Exchange (PSX), the board approved the agreement during a meeting held on July 17 at the company’s head office.

The agreement, which outlines the terms for the recommencement of gas supply to the JJVL facility, had already received the endorsement of the Special Investment Facilitation Council (SIFC), signaling strong government backing.

End of a long dispute

JJVL’s $250 million gas processing facility — once a cornerstone of Pakistan’s LPG sector — has remained idle since 2020 due to protracted legal and regulatory disputes. The shutdown was triggered by controversies surrounding the transparency of the original contract between JJVL and SSGC for extracting gas liquids from the Qadirpur field.

The contract was annulled by the Supreme Court in 2013, leading to a years-long legal battle in local and international forums.

Subsequent arbitration and legal reviews, including international rulings in JJVL’s favor, helped create a pathway for the resolution now approved by SSGC and supported at the highest policy levels.

Industry analysts have hailed the latest development as a turning point for energy investment in Pakistan. The JJVL plant — built with U.S. engineering and private capital — had previously catalyzed over a billion dollars in downstream investment and helped reduce the country’s reliance on imported LPG.

With domestic gas production in steep decline and international energy prices remaining volatile, the revival of the JJVL facility is expected to boost local LPG and NGL supplies, support residential and industrial energy consumers, and reduce pressure on foreign exchange reserves spent on energy imports.

“This is a strong signal that Pakistan is serious about reviving private sector energy infrastructure,” said an energy sector expert. “The restart of JJVL could unlock new investor confidence and help restore momentum in stalled or underutilized assets.”

Before the shutdown, JJVL’s plant was producing roughly 400 MT of LPG and 120 MT of NGL daily, using 8–10 mmcfd of natural gas. The five‑year suspension starting mid‑2020 halted this production, resulting in significant domestic LPG shortfalls and increased imports.