US-backed consortium proposes $4.4bn LNG project

Why This Matters

Key context: <p>• Proposal envisages four tanks holding 560,000 cubic metres at Port Qasim in first phase of the $4.4bn plan that also includes a 1,100km upcountry gas pipeline<br>• Project would charge $4.93 per mmBtu for terminal and storage, $1.91 for transmission over first decade</p> <p>ISLAMABAD: A private consortium of US companies, backed by the Trump administration, is pushing for an investment of up to $4.4 billion in an integrated liquefied natural gas (LNG) project in Pakistan, covering imports, storage, re-gasification, gas transmission and sales to large consumers on a ‘merchant basis’.</p> <p>The development comes after Energas, an earlier frontrunner consisting of the Lucky Group and QatarEnergy, <a href="https://www.dawn.com/news/2040127">abandoned</a> a similar project citing fundamental changes in Pakistan’s energy policy and requirements, as well as longstanding unresolved policy and fiscal issues.</p> <p>The US consortium comprises Global Vision Energy Partners (GVEP) and Khanjee Holdings, both related firms, along with strategic co-investors from other countries and General Mediterranean Holding, a Luxem­bo­urg-based US financial conglomerate.</p> <p>The sponsors have reportedly sec­ured consent from the Port Qasim Aut­hority for the proposed project site. An application has also been filed with the Oil and Gas Regulatory Authority (Ogra) for a provisional licence.</p> <p>A special purpose vehicle (SPV), a separate legal entity established to hold specific assets and liabilities and isolate financial risks, has been incorporated. Government facilitation has also been conveyed through the Mini­stry of Maritime Affairs and the Mini­stry of Energy’s Petroleum Divi­sion, according to documents seen by Dawn.</p> <p>The project has been approved for consideration under the US Trade and Development Agency’s (USTDA) project preparation programme. It may also receive partial financing from the US Development Finance Corporation, backed by export credit guarantees from the US Export-Import Bank for technology, equipment and services.</p> <p>Pakistan currently has no LNG storage facilities, leaving its domestic re-gasified LNG supplies entirely dependent on import supply chains and international energy prices.</p> <p>The sponsors plan to develop the project in two phases. The first phase will comprise an LNG terminal and storage facility with four tanks and an estimated annual throughput of 35 billion cubic feet (BCF), at a cost of $1.7bn.</p> <p>The second phase will involve the construction of a 1,100km, 42-48-inch pipeline to transport gas upcountry, with a capacity of around 1.2 billion cubic feet per day (BCFD). This will take the total project cost to $4.4bn.</p> <p>The government had previously pursued a similar North-South gas pipeline project with Russia.</p> <p>The proposed venture is being structured as a merchant infrastructure platform to meet domestic regasification requirements while establishing a physical LNG storage and trading hub in South Asia for US and Middle Eastern suppliers.</p> <p>The consortium is engaging local inve­stors for up to 10 per cent equity participation, with indicative investments starting at $50 million per investor.</p> <p>The sponsors also expect to attract strategic co-investors, including global energy and infrastructure funds and institutional investors such as Grey Rock Investment Partners, Kohlberg Kravis Roberts &amp; Co, Blackstone Inc., Saudi Arabia’s Public Investment Fund and the Kuwait Investment Authority.</p> <p>Their participation remains subject to due diligence, investment approvals and definitive agreements. No binding equity commitments have been confirmed so far.</p> <p>The SPV will develop, own and operate the project as a regional LNG storage, regasification and trading hub, serving Pakistan’s domestic gas market alongside US and Middle Eastern LNG suppliers. The model will not depend on a single government-backed offtake arrangement.</p> <p>Re-gasification tariffs for the domestic market will be submitted to Ogra for approval, while other commercial services, including storage, tolling and transshipment, will be priced on market-based terms.</p> <p>The US sponsors consider Port Qasim strategically important because of its existing port infrastructure and marine access for LNG carriers. Its location outside the Strait of Hormuz, one of the world’s most significant energy shipping chokepoints, is another key consideration.</p> <p>Under the proposed financing structure, the project will have a 70:30 debt-to-equity ratio. GVEP will hold a 26pc stake, followed by General Mediterranean Holding with 24pc, and Khanjee Holdings and strategic co-investors with 20pc each. Local investors will hold the remaining 10pc in the first phase, which is estimated to cost $1.32bn (70pc of the $1.7bn cost).</p> <p>The final project cost will be determined after the execution of engineering, procurement and construction (EPC) contracts and other construction and supply agreements.</p> <p>The commercial model is expected to combine long-term tolling and storage agreements, transshipment arrangements and take-or-pay commitments where appropriate, with the remaining capacity reserved for merchant activities.</p> <p>The proposed tolling tariff for the terminal and storage facility is $4.93 per million British thermal units (mmBtu), while the separate transmission tariff is estimated at $1.91 per mmBtu for the first 10 years. These rates are projected to decline to $2.20 and $0.92 per mmBtu, respectively, thereafter.</p> <p>The LNG terminal and storage facility will have four tanks, each with a capacity of 140,000 cubic metres, providing total static storage capacity of 560,000 cubic metres.</p> <p>Based on three inventory turnover cycles annually, the facility is expected to handle approximately 35.6BCF of LNG a year, with storage capacity of around 11.9BCF per cycle.</p> <p><em>Published in Dawn, November 2nd, 2026</em></p> This development from dawn.com highlights ongoing changes in the sector.