The recent surge in Liquid Petroleum Gas (LPG) prices has taken the consumers by surprise. An 11.8 kg LPG cylinder currently costs Rs. 2,436, which was at Rs. 1,530 in October last year. With winter approaching, the prices are expected to increase further on account of the increasing demand and supply gap.
In order to minimize the effect on consumers as well as bring down the LPG prices, the Petroleum Division has stepped up efforts to revive the Jamshoro Joint Venture Limited (JJVL) LPG and NGL extraction plant. The revival of the plant will reduce the country’s reliance on imported gas, helping scale down the price.
In this regard, the DG LG (Liquid Gases) has written a letter to the Managing Director of Sui Southern Gas Company (SSGC), asking him to resume the gas supply to the extraction plant in the light of ECC’s decision taken on August 12, 2020.
The complete revival of the JJPL plant could make a difference as it is capable of contributing 15 percent to the country’s LPG production.
Considering the increasing gap in the demand and supply of natural gas, the Petroleum Division has directed SSGC to immediately start negotiations with JJVL on agreeable terms of the old and new contracts
“The plant was producing over 200 metric tons of LPG per day under the agreement endorsed by the Supreme Court for the extraction of LPG and NGL at the JJVL plant,” the letter said, adding that the revival of the plant will not only reduce reliance on import but also contribute to the foreign exchange through the exports of Natural Gas Liquids.
