US Proposes $4.4B LNG Project to Boost Pakistan’s Energy Sector

News Desk

ISLAMABAD: A private consortium of US companies is proposing a significant investment of up to $4.4 billion in an integrated liquefied natural gas (LNG) project in Pakistan.

This ambitious plan includes the construction of four storage tanks at Port Qasim, capable of holding 560,000 cubic meters of LNG, and a 1,100 km gas pipeline to facilitate transmission across the country.

The consortium, which includes Global Vision Energy Partners (GVEP) and Khanjee Holdings, aims to provide LNG imports, storage, re-gasification, and gas transmission to large consumers on a merchant basis.

The project proposes a pricing structure of $4.93 per mmBtu for terminal and storage and $1.91 for transmission over the first decade.

This initiative follows the withdrawal of Energas, a previous contender, which cited significant changes in Pakistan’s energy policy as a reason for its exit.

This development is crucial for Pakistan, which faces ongoing energy shortages and seeks to diversify its energy sources.

The proposed LNG project could enhance energy security, stimulate economic growth, and attract further foreign investment in the energy sector.

It also reflects the US’s commitment to supporting Pakistan’s energy infrastructure amid shifting geopolitical dynamics.

Next steps include detailed feasibility studies and negotiations with the Pakistani government to finalize the terms of the investment.

The consortium is expected to engage with local stakeholders to address any regulatory or logistical challenges that may arise during the project’s implementation.