US-backed consortium proposes $4.4bn LNG project in Pakistan

A consortium of US companies, backed by the Trump administration, has proposed investing up to $4.4 billion in an integrated liquefied natural gas (LNG) project in Pakistan, covering imports, storage, re-gasification, transmission and sales to major consumers.

The consortium comprises Global Vision Energy Partners (GVEP), Khanjee Holdings and Luxembourg-based General Mediterranean Holding, along with strategic co-investors from other countries.

According to documents, the sponsors have obtained consent from the Port Qasim Authority for the proposed site and applied to the Oil and Gas Regulatory Authority (Ogra) for a provisional licence. A special purpose vehicle has also been incorporated to develop and operate the project.

The venture is planned in two phases. The first, estimated to cost $1.7 billion, includes an LNG terminal with four storage tanks and an annual handling capacity of around 35 billion cubic feet (BCF).

The second phase involves building a 1,100-kilometre pipeline to transport gas to other parts of the country. It would have a capacity of around 1.2 billion cubic feet per day, taking the overall project cost to $4.4 billion.

The sponsors are seeking local investors for up to 10% equity participation, with indicative investments starting at $50 million per investor. However, no binding equity commitments have been confirmed.

The project has been approved for consideration under the US Trade and Development Agency's project preparation programme and may also receive financing from the US Development Finance Corporation.

Pakistan currently has no LNG storage facilities, leaving its re-gasified LNG supplies dependent on imports and international energy market