A consortium of United States-backed companies has proposed an investment of up to $4.4 billion in an integrated liquefied natural gas (LNG) infrastructure project in Pakistan, covering LNG imports, storage, regasification, gas transmission and supply to large consumers. The proposed development is planned at Port Qasim and will include a terminal with four storage tanks in its initial phase, followed by the construction of a 1,100-kilometre pipeline to transport gas to upcountry markets. The sponsors are pursuing the project as a privately operated merchant infrastructure platform that would serve Pakistan’s domestic energy requirements while establishing a regional LNG storage and trading hub for suppliers from the United States and the Middle East.
The proposed consortium comprises Global Vision Energy Partners (GVEP) and Khanjee Holdings, which are related companies, alongside strategic co-investors from other countries and General Mediterranean Holding, a Luxembourg-based financial conglomerate. The initiative has received backing from the Trump administration, with the sponsors reportedly securing consent from the Port Qasim Authority for the proposed project site. An application has also been submitted to the Oil and Gas Regulatory Authority (OGRA) for a provisional licence. A special purpose vehicle (SPV) has been incorporated to develop, own and operate the infrastructure while keeping the project’s assets, liabilities and financial risks separate from those of its sponsors.
Government facilitation has also been conveyed through the Ministry of Maritime Affairs and the Petroleum Division of the Ministry of Energy, according to documents related to the proposal. The project has been approved for consideration under the United States Trade and Development Agency’s (USTDA) 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 required for construction and operations.
The project is being proposed at a time when Pakistan lacks dedicated LNG storage facilities and remains dependent on import supply chains and international energy prices for its regasified LNG requirements. The consortium plans to develop the venture in two phases, beginning with an LNG import terminal and storage facility estimated to cost $1.7 billion. This initial phase will include four storage tanks with a combined capacity of 560,000 cubic metres and an expected annual throughput of approximately 35 billion cubic feet (BCF). The facility is designed to provide physical storage capacity that could improve the management of imported LNG supplies and support commercial trading activities.
The second phase will involve constructing a 1,100-kilometre gas transmission pipeline with a diameter of 42 to 48 inches. The pipeline is expected to have a transportation capacity of approximately 1.2 billion cubic feet per day (BCFD), connecting the coastal LNG infrastructure with consumers in upcountry markets. Once both phases are completed, the total investment is projected to reach $4.4 billion. Pakistan had previously pursued a similar North-South gas pipeline initiative with Russia, although the proposed US-backed venture is being structured around a privately financed and commercially operated model.
The consortium intends to operate the facility as a regional LNG storage, regasification and trading hub rather than relying on a single government-backed gas purchase agreement. Its commercial structure will allow the SPV to provide services to Pakistan’s domestic gas market while also serving international LNG suppliers and other market participants. Regasification tariffs for domestic customers will be submitted to OGRA for approval, while services such as storage, tolling and transshipment are expected to be priced according to market conditions. The sponsors believe Port Qasim offers strategic advantages because of its existing port infrastructure, marine access for LNG carriers and location outside the Strait of Hormuz, a major international energy shipping route.
Under the proposed financing arrangement, the project will follow a 70:30 debt-to-equity structure. GVEP is expected to hold a 26 percent stake, followed by General Mediterranean Holding with 24 percent, while Khanjee Holdings and strategic co-investors will each hold 20 percent. Local investors are expected to account for the remaining 10 percent of the initial phase. Based on the estimated $1.7 billion cost of the first phase, its financing requirement is projected at approximately $1.32 billion in total debt and $510 million in equity, subject to the final financing structure and project agreements.
The sponsors are engaging Pakistani investors for up to 10 percent equity participation, with indicative investments starting at $50 million per investor. They are also seeking participation from international energy and infrastructure funds and institutional investors, including Grey Rock Investment Partners, Kohlberg Kravis Roberts & Co, Blackstone Inc., Saudi Arabia’s Public Investment Fund and the Kuwait Investment Authority. However, the participation of these institutions remains subject to due diligence, investment approvals and definitive agreements. No binding equity commitments have been confirmed so far.
The proposed commercial model will combine long-term tolling and storage agreements, transshipment arrangements and take-or-pay commitments where appropriate, while keeping the remaining capacity available for merchant activities. The proposed tariff for terminal and storage services stands at $4.93 per million British thermal units (mmBtu), while the separate gas transmission tariff is estimated at $1.91 per mmBtu during the first 10 years. These rates are projected to decline to $2.20 and $0.92 per mmBtu, respectively, after the initial decade.
Each of the four proposed LNG tanks will have a storage capacity of 140,000 cubic metres, providing total static storage of 560,000 cubic metres. Based on three inventory turnover cycles annually, the facility is expected to handle approximately 35.6 BCF of LNG each year, with around 11.9 BCF of storage capacity available per cycle. The final investment cost will be determined after the execution of engineering, procurement and construction contracts and other construction and supply agreements.
If implemented, the project would introduce large-scale LNG storage and additional gas transmission infrastructure into Pakistan’s energy system. However, its progress will depend on regulatory approvals, financing arrangements, investor commitments and the finalisation of construction contracts. The proposed merchant model would also require commercially viable arrangements with LNG suppliers and domestic customers to support the long-term operation of the facility.
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