US consortium proposes $4.4 billion LNG project to Pakistan — Dawn
A consortium of US companies, backed by the Trump administration, has proposed to Pakistan an integrated project for the import, storage, regasification and transportation of liquefied natural gas worth up to $4.4 billion. As Dawn reports, the initiative also provides for the commercial sale of gas to major consumers.
Terminal at Port Qasim
The consortium includes the affiliated Global Vision Energy Partners and Khanjee Holdings, Luxembourg-based financial conglomerate General Mediterranean Holding, as well as potential strategic co-investors from other countries.
The project's sponsors have reportedly obtained approval from the Port Qasim Authority for a site for the project and have submitted an application to Pakistan's regulator, Ogra, for a preliminary license. A special-purpose project company has already been registered to implement the initiative; it is to own the assets and manage the project.
The project was selected for consideration under the US Trade and Development Agency's project preparation program. Part of the financing could potentially be provided by the US International Development Finance Corporation, while the Export-Import Bank of the United States could provide export credit guarantees for technology, equipment and services.
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The first phase, valued at $1.7 billion, envisages the construction of an LNG terminal and storage facility with four tanks of 140,000 cubic meters each. Their combined static capacity will amount to 560,000 cubic meters, while planned annual throughput will be about 35 billion cubic feet of LNG.
Pipeline to inland areas
At the second stage, the consortium proposes laying a 1,100-kilometer pipeline with a diameter of 42–48 inches to supply gas to Pakistan's inland areas. Its capacity is expected to be approximately 1.2 billion cubic feet per day. Once this phase is implemented, the total cost of the initiative is expected to rise to $4.4 billion.
The project is planned as a commercial infrastructure platform without reliance on a single guaranteed state gas buyer. The consortium is seeking local investors for up to a 10% equity stake, with an estimated minimum contribution starting at $50 million. The participation of potential international funds and institutional investors depends on due diligence, investment decisions and final agreements; there are currently no binding commitments regarding contributions.
The proposed tariff for terminal and storage services is $4.93 per million British thermal units, while transportation is priced at $1.91 for the first ten years. Thereafter, according to the sponsors' forecast, these rates may decline to $2.20 and $0.92 respectively.
