Sui Southern Gas Company Limited (SSGC) has formally approved a major agreement with Jamshoro Joint Venture Limited (JJVL) for the extraction of liquefied petroleum gas (LPG) and natural gas liquids (NGL)—a significant move in Pakistan’s energy sector.
The development was disclosed in a notice issued to the Pakistan Stock Exchange (PSX) on Friday. According to the statement, the Board of Directors (BoD) of SSGC approved the initialed agreement during its meeting held on 17 July 2025 at the company’s head office.
“The agreement between SSGC and JJVL for the extraction of LPG & NGL has been approved,” read the official statement, confirming a long-awaited restart of collaboration between the two companies.
Notably, the agreement has also been endorsed and approved by the Special Investment Facilitation Council (SIFC)—a federal body tasked with driving economic and investment reforms. This approval is based on a mutually agreed revenue-sharing formula between SSGC and JJVL.
Key Terms of the Agreement:
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Revenue split: 66% to SSGC, 34% to JJVL
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LPG share for SSGC: 25%, based on OGRA-notified prices
This partnership is set to resume gas supply to JJVL’s LPG-NGL extraction plant, bringing back an essential processing facility into operation. The agreement also aligns with broader government efforts to revitalize energy infrastructure and attract private investment through transparent and regulated frameworks.
SSGC has been making a strong comeback financially as well. The company recently reported a profit of Rs8.3 billion for FY24, signaling improved governance and operational efficiency. The strategic deal with JJVL is expected to further strengthen its financial and operational position.
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With energy demand surging and local extraction gaining renewed focus, this deal could play a pivotal role in enhancing Pakistan’s LPG availability and reducing dependence on imported fuels.
