LAHORE: The chairman of Liquefied Petroleum Gas Industries Association of Pakistan has appealed the newly elected government to take immediate measures to increase local LPG production to reduce energy shortfall.
In a letter to Prime Minister Mian Shehbaz Sharif, Chairman of LPG Industries Association of Pakistan Irfan Khokhar has demanded of restoring Asia’s largest LPG processing plant, Jamshoro Joint Venture Limited (JJVL), at the earliest.
“The closure has not only reduced the local LPG production thus creating significant shortfall but also have resulted in the hike of LPG prices by 172% just in 2 years. Substantiated by rise in the international prices the local LPG prices hiked to Rs247/kg in comparison to Rs90/kg, two years ago.
The closure of JJVL plant from June 21st, 2020 till March 31st, 2022 (21 months) inflicted a loss of around Rs50 billion to national exchequer. This willful damage to Pakistan’s LPG industry, shareholders of Sui Southern Gas Company Limited and to the national exchequer was done due to incompetent by SSGC management, Khokhar alleged.
Adding salt to the wound, despite instructions from Ministry of Energy (Petroleum Division) on 1st October and 9th November of 2021, SSGC have not yet resumed the supply to JJVL for LPG production, he added.
Appreciating Prime Minister Shehbaz’s efforts for the prosperity of poor people of Pakistan, Khokhar lauded the PM’s bold decisions taken 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 poor will continue by your government for future as well”.
JJVL can contribute to LPG industry by producing 10,000MT to 12,000MT monthly catering the demand of 750,000 houses while providing employment opportunity to more than 5000 people. It was established by Rs40 billion with 50% foreign investment and closure have discouraged the foreign investment as well as have hurt the GDP in Pakistan, he said.
The letter added that JJVL being the biggest LPG production facility of Asia is non-operational since negligence and arrogance of SSGC since July 21, 2020 and poor people of Pakistan are suffering due to its closure by bearing 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, he added”.
