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Senate Standing Committee on Petroleum and Natural Resources on Monday called a special meeting to discuss agreement between Jamshoro Joint Venture Limited (JJVL) and Sui Southern Gas Company (SSGC) over LPG extraction. National Assembly Standing Committee on Petroleum and Natural Resources has already taken up LPG extraction agreement between JJVL and SSGC and called meeting on October 12-13.
Sabir Ali Baloch chairman senate body on petroleum included the issue on its agenda after LPG Distributors Association Pakistan requested it to take up issues in LPG sector including the agreement between JJVL and SSGC. Chairing a meeting of senate body, Sabri Ali Baloch said issues relating to LPG sector would be taken up in next meeting of the committee.
Chairman LPG distributors Association of Pakistan in its application said the government had suffered billion of rupees loss due to flawed agreement between JJVL and SSGC. He said the agreement will expire on February 3, 2011 and it was against Pakistan Procurement Regulatory Authority (Pepra) rules to award the contract to JJVL on existing terms and conditions beyond expiry of the agreement.
"SSGC should be given ownership of LPG and JJVL should get royalty for LPG extraction," Khokhar said and demanded that senate body should seek report regarding the agreement between JJVL and SSGC. He said the Competition Commission of Pakistan (CCP) had imposed fine amounting to Rs 40 million on charges of black marketing and cartelisation of LPG producer JJVL and LPG marketing companies.

Copyright Business Recorder, 2010

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