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Natural gas

SSGC and JJVL Agree on LPG and NGL Extraction, Restarting Pakistan's Domestic Energy Supply

Strategic Insights

— 1 min read

The Sui Southern Gas Company Limited (SSGC) has approved an agreement with the Jamshoro Joint Venture Limited (JJVL) for the extraction of liquefied petroleum gas (LPG) and natural gas liquids (NGL). This follows a prior endorsement from the Special Investment Facilitation Council (SIFC) and marks a significant milestone for Pakistan's domestic energy supply chain. The $250 million facility, JJVL's flagship LPG and NGL extraction plant in Deh Shah Bukhari, was once a cornerstone of the country's liquefied petroleum gas (LPG) industry, catalyzing over a billion dollars in downstream investment and reducing the country's reliance on imported fuels. The restart of operations comes after years-long legal battles primarily concerning the allocation of gas by the SSGC and the constitutionality of the original contract.

Key Takeaways:

  • The SSGC Board of Directors (BoD) approved the agreement with JJVL on 17 July 2025, following a prior endorsement from the Special Investment Facilitation Council (SIFC).
  • The $250 million JJVL's flagship LPG and NGL extraction plant in Deh Shah Bukhari was once a cornerstone of Pakistan's liquefied petroleum gas (LPG) industry, catalyzing over a billion dollars in downstream investment.
  • The restart of operations promises to bolster the local LPG market at a time when global energy costs remain volatile.
  • The move reflects renewed confidence in the legal and political environment, coupled with strategic necessity, as indigenous gas reserves deplete and the import bill rises.
  • The agreement has been hailed as a positive signal for investors seeking long-term certainty in Pakistan's energy infrastructure sector.
  • The SSGC and JJVL's agreement aims to maximise output from domestic sources, which are essential for Pakistan's energy security.
  • The technical expertise and technological sophistication of the JJVL's extraction plant are seen as major assets for Pakistan's energy sector.

Statistics:

  • $250 million: the cost of JJVL's flagship LPG and NGL extraction plant in Deh Shah Bukhari.
  • Billion dollars: the amount of downstream investment catalyzed by the JJVL's extraction plant in Pakistan's LPG industry.
  • 17 July 2025: the date of the SSGC's Board of Directors (BoD) approval of the agreement with JJVL.
  • Years-long: the duration of legal battles concerning the allocation of gas by the SSGC and the constitutionality of the original contract between SSGC and JJVL.

Sources:

  • Filing at the Pakistan Stock Exchange (PSX) on Friday.
  • Notice sent to the PSX.
  • Profit report on the dispute between JJVL and SSGC.

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