A United States (US)-backed consortium is pushing for an investment of up to $4.4 billion in an integrated Liquefied Natural Gas (LNG) project in Pakistan, covering imports, storage, regasification and gas transportation to major consumers.
The consortium includes Global Vision Energy Partners (GVEP), Khanjee Holdings (US-based global energy and infrastructure developer/investor) and Luxembourg-based General Mediterranean Holding, alongside strategic investors from other countries.
The project is being proposed on a commercial basis without relying on a single government-backed gas purchase agreement.
According to documents seen by a private media outlet, the sponsors have secured consent from the Port Qasim Authority for the proposed site and submitted an application to the Oil and Gas Regulatory Authority (OGRA) for a provisional licence.
The project will be developed in two phases. The first will involve an LNG terminal and storage facility with four tanks, each holding 140,000 cubic metres, at an estimated cost of $1.7 billion. The facility is expected to handle around 35.6 billion cubic feet (BCF) of LNG annually.
The second phase will involve constructing a 1,100-kilometre pipeline, with a diameter of 42 to 48 inches and a transportation capacity of around 1.2 billion cubic feet per day (BCFD). This will take the total proposed investment to $4.4 billion.
The sponsors have also incorporated a Special Purpose Vehicle (SPV), a separate legal entity established to manage the project’s assets and liabilities. Government facilitation has been conveyed through the ministries of Maritime Affairs and Energy.
The project has been approved for consideration under the US Trade and Development Agency’s project preparation programme.
It may also receive financing from the US Development Finance Corporation, alongside export credit guarantees from the US Export-Import Bank.
The consortium is seeking up to 10 percent equity participation from local investors, with indicative investments starting at $50 million. However, no binding investment commitments have been confirmed so far.
The proposal comes after Energas, a consortium involving the Lucky Group and QatarEnergy, abandoned a similar project, citing changes in Pakistan’s energy policies and unresolved fiscal issues.
Pakistan currently has no LNG storage facilities, leaving its regasified LNG supplies dependent on imports and international market prices.
