ISLAMABAD: A private consortium of U.S. companies backed by the Trump administration is seeking to invest up to $4.4 billion in an integrated liquefied natural gas project in Pakistan that would cover imports, storage, re-gasification, gas transmission and sales to large consumers on a merchant basis.
The proposal follows the withdrawal of Energas, an earlier frontrunner comprising the Lucky Group and QatarEnergy, which abandoned a similar project citing fundamental changes in Pakistan's energy policy and requirements, as well as longstanding unresolved policy and fiscal issues.
The U.S. consortium includes Global Vision Energy Partners and Khanjee Holdings, both related firms, along with strategic co-investors from other countries and General Mediterranean Holding, a Luxembourg-based U.S. financial conglomerate.
The sponsors have reportedly secured consent from the Port Qasim Authority for the proposed project site and have filed an application with the Oil and Gas Regulatory Authority for a provisional license.
A special purpose vehicle has been incorporated to hold specific assets and liabilities and isolate financial risks. Government facilitation has been conveyed through the Ministry of Maritime Affairs and the Ministry of Energy's Petroleum Division, according to documents seen by Dawn.
The project has been approved for consideration under the U.S. Trade and Development Agency's project preparation program. It may also receive partial financing from the U.S. Development Finance Corporation, backed by export credit guarantees from the U.S. Export-Import Bank for technology, equipment and services.
Pakistan currently has no LNG storage facilities, leaving its domestic re-gasified LNG supplies entirely dependent on import supply chains and international energy prices.
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, at a cost of $1.7 billion. The second phase will involve construction of a 1,100-kilometer, 42- to 48-inch pipeline to transport gas upcountry, with a capacity of around 1.2 billion cubic feet per day, bringing the total project cost to $4.4 billion.
The government had previously pursued a similar north-south gas pipeline project with Russia.
The proposed venture is being structured as a merchant infrastructure platform to meet domestic re-gasification requirements while establishing a physical LNG storage and trading hub in South Asia for U.S. and Middle Eastern suppliers. The model will not depend on a single government-backed offtake arrangement.
The consortium is engaging local investors for up to 10% equity participation, with indicative investments starting at $50 million per investor. 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 & Co., Blackstone Inc., Saudi Arabia's Public Investment Fund and the Kuwait Investment Authority. Their participation remains subject to due diligence, investment approvals and definitive agreements, and no binding equity commitments have been confirmed.
The special purpose vehicle will develop, own and operate the project as a regional LNG storage, re-gasification and trading hub serving Pakistan's domestic gas market alongside U.S. and Middle Eastern LNG suppliers. 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.
The U.S. 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.
Under the proposed financing structure, the project will have a 70:30 debt-to-equity ratio. Global Vision Energy Partners will hold a 26% stake, followed by General Mediterranean Holding with 24%, and Khanjee Holdings and strategic co-investors with 20% each. Local investors will hold the remaining 10% in the first phase, which is estimated to cost $1.32 billion, or 70% of the $1.7 billion cost.
The final project cost will be determined after execution of engineering, procurement and construction contracts and other construction and supply agreements. The commercial model is expected to combine long-term tolling and storage agreements, transshipment arrangements and take-or-pay commitments where appropriate, with remaining capacity reserved for merchant activities.
The proposed tolling tariff for the terminal and storage facility is $4.93 per million British thermal units, while the separate transmission tariff is estimated at $1.91 per mmBtu for the first 10 years. The rates are projected to decline to $2.20 and $0.92 per mmBtu, respectively, thereafter.
The LNG terminal and storage facility will have four tanks, each with a capacity of 140,000 cubic meters, providing total static storage capacity of 560,000 cubic meters. Based on three inventory turnover cycles annually, the facility is expected to handle approximately 35.6 billion cubic feet of LNG a year, with storage capacity of around 11.9 billion cubic feet per cycle.
