A US-backed consortium has proposed a $4.4 billion Port Qasim LNG project that would give Pakistan its first large dedicated LNG storage terminal and a 1,100km pipeline to carry imported gas upcountry. The plan has emerged only days after Energas, the consortium of Lucky Group and QatarEnergy, dropped its own LNG terminal plan at the same port over policy and fiscal uncertainty.
The sponsors are US-based Global Vision Energy Partners (GVEP) and Khanjee Holdings, along with Luxembourg-based General Mediterranean Holding and other strategic investors, with backing from the Trump administration. According to details of the proposal reported in the media, the project has been approved for consideration under the US Trade and Development Agency’s project preparation programme and could get partial financing from the US Development Finance Corporation, supported by US Export-Import Bank guarantees for equipment and services.
Port Qasim LNG Project: Phases and Cost
| Item | Phase 1: Terminal | Phase 2: Pipeline |
|---|---|---|
| Estimated cost | $1.7 billion | $2.7 billion |
| Scope | LNG import, storage and regasification at Port Qasim | Gas transmission line to inland markets |
| Capacity | Four tanks of 140,000 cubic metres each (560,000 m3 total) | 1,100km, 42-48 inch, about 1.2 billion cubic feet a day |
| Total | $4.4 billion, financed 70% debt and 30% equity | |
The sponsors have proposed a terminal and storage tariff of $4.93 per mmBtu and a transmission tariff of $1.91 per mmBtu for the first ten years, falling sharply after that. Unlike earlier LNG deals, the project would run on a merchant basis: it would sell storage, regasification and transmission services to several large buyers instead of relying on a single government-backed purchase agreement. Regasification tariffs for the domestic market would still need OGRA approval.
Approvals So Far
- Site consent from the Port Qasim Authority.
- An application filed with the Oil and Gas Regulatory Authority (OGRA) for a provisional licence.
- A special purpose company formed to build, own and operate the project, with facilitation conveyed through the Ministry of Maritime Affairs and the Petroleum Division.
The project is still at the proposal and preparation stage. Construction contracts have not been finalised and no binding equity commitments from large international investors have been confirmed.
Why Port Qasim LNG Matters
Pakistan imports LNG through two floating storage and regasification units (FSRUs) at Port Qasim and has no large onshore storage. That leaves the country exposed whenever a cargo is delayed. Onshore tanks holding 560,000 cubic metres would let Pakistan build a buffer before winter, when household demand peaks and gas shortages hit homes and industry.
Location is the other selling point. Port Qasim lies outside the Strait of Hormuz, which has been badly disrupted by the Iran war. Just last week an LNG carrier that Pakistan had negotiated safe passage for was attacked near the strait, a reminder of how risky Gulf supply routes have become. The sponsors also want to turn Port Qasim into a regional LNG storage and trading hub for suppliers from the United States and the Middle East.
How the Port Qasim LNG Plan Affects You
- Winter gas supply: More storage could reduce sudden shortages for homes, CNG stations and factories.
- Industry: A new pipeline to upper Pakistan could bring imported gas closer to industrial hubs in Punjab.
- Prices: Under a merchant model, gas is sold at market-based rates, so the project adds supply security but does not guarantee cheaper gas.
What Happens Next
The next steps are OGRA’s decision on the provisional licence, tariff approval, financing close and the signing of engineering and construction contracts. Pakistan once pursued a similar North-South gas pipeline with Russia that never got built, so investors and officials will be watching whether this proposal can move from paper to groundbreaking.
For official updates, visit the Oil and Gas Regulatory Authority (OGRA) website.
Read More: Lucky-QatarEnergy Consortium Drops Port Qasim LNG Terminal Plan
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