US-Backed Consortium Proposes $4.4 Billion LNG Project in Pakistan

A consortium of US-linked companies has put forward a proposal to invest up to $4.4 billion in an integrated liquefied natural gas (LNG) project in Pakistan, spanning imports, storage, regasification, gas transmission and sales to large industrial consumers. The plan, which reportedly carries backing from the Trump administration, comes after Energas — a previous contender made up of the Lucky Group and QatarEnergy — abandoned a comparable project, citing changes to Pakistan's energy policies and unresolved policy and fiscal issues.

The consortium includes Global Vision Energy Partners (GVEP) and Khanjee Holdings, alongside strategic co-investors from other countries and Luxembourg-based General Mediterranean Holding. According to reports, the sponsors have secured consent from the Port Qasim Authority for the proposed site and have filed an application with the Oil and Gas Regulatory Authority (Ogra) for a provisional licence.

The venture is planned in two phases. The first phase covers an LNG terminal and storage facility at Port Qasim, featuring four tanks with a combined capacity of 560,000 cubic metres. That facility is expected to handle roughly 35 billion cubic feet (BCF) of LNG annually, at an estimated cost of $1.7 billion. The second phase would add a 1,100-kilometre pipeline with a diameter of 42 to 48 inches to carry gas to upcountry markets, with a capacity of about 1.2 billion cubic feet per day (BCFD). Together, the two phases bring the total project cost to $4.4 billion.

Based on three inventory turnover cycles a year, the terminal would handle approximately 35.6 BCF of LNG annually, with each cycle involving around 11.9 BCF. The sponsors intend to develop the venture as a merchant infrastructure platform that serves Pakistan's domestic regasification needs while also creating a physical LNG storage and trading hub for suppliers from the United States and the Middle East. Pakistan currently has no LNG storage facilities, leaving its regasified LNG supplies dependent on international imports and the associated supply chains and prices.

The consortium has highlighted Port Qasim's existing port infrastructure and marine access for LNG carriers. Its location outside the Strait of Hormuz, a major global energy shipping chokepoint, is cited as another factor behind the choice of site. The project would be developed, owned and operated by a special purpose vehicle (SPV) — a separate legal entity set up to hold the project's assets and liabilities and isolate financial risks — under a model that would not rely on a single government-backed offtake arrangement.

The project has been approved for consideration under the US Trade and Development Agency's project preparation programme. It may also receive partial financing from the US Development Finance Corporation, supported by export credit guarantees from the US Export-Import Bank for technology, equipment and services. The consortium is seeking up to 10 percent equity participation from local investors, with indicative investments starting at $50 million per investor, and expects 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, Saudi Arabia's Public Investment Fund and the Kuwait Investment Authority.