Pakistan LNG Project: US-Backed Group Proposes $4.4 Billion Investment

Pakistan could attract up to $4.4 billion in investment for a new liquefied natural gas (LNG) project. A consortium of US-linked companies has proposed building an LNG terminal at Port Qasim and a gas pipeline to transport supplies inland.

The Pakistan LNG project would be developed in two phases. The first phase would focus on LNG imports and storage. The second would add a 1,100-kilometre gas pipeline.

The proposal comes after Energas, a venture involving the Lucky Group and QatarEnergy, abandoned a similar project. That decision raised questions about the challenges facing major energy investments in Pakistan.

However, the new proposal could offer another opportunity to expand the country’s gas infrastructure. Its progress will depend on financing, regulatory approvals and agreements with customers.

What Is the Pakistan LNG Project?

The proposed Pakistan LNG project would provide facilities to import, store and process liquefied natural gas. It would also transport gas to customers through a large pipeline.

The consortium plans to establish the terminal at Port Qasim, near Karachi. The location offers access to port infrastructure and LNG shipping routes.

The project would serve domestic customers while also supporting LNG storage and trading activities. Its sponsors hope to develop a regional hub for suppliers from the United States and the Middle East.

According to reports published on November 2, 2026, the total investment could reach $4.4 billion.

However, this amount represents the estimated cost of the proposal. It does not mean the money has already been invested or that construction has begun.

Key Details of the Proposed Project

These figures come from media reports about the proposed development. Final costs and specifications could change as the project progresses.

Who Is Behind the $4.4 Billion Investment?

The proposed consortium includes Global Vision Energy Partners (GVEP) and Khanjee Holdings. It also includes Luxembourg-based General Mediterranean Holding and potential strategic co-investors.

The sponsors have reportedly secured consent from the Port Qasim Authority for the proposed site. They have also submitted an application to the Oil and Gas Regulatory Authority (OGRA) for a provisional licence.

In addition, a special purpose vehicle has reportedly been established to develop and operate the project.

A special purpose vehicle is a separate legal entity created for a specific business project. It can hold the project’s assets and liabilities separately from those of its sponsors.

The proposal has also been approved for consideration under the US Trade and Development Agency’s project preparation programme.

The project could potentially receive financing support from the US Development Finance Corporation. Meanwhile, the US Export-Import Bank could provide export credit guarantees for equipment and services.

However, these possibilities should not be confused with confirmed financing. The project still needs to secure the required funding and complete the relevant approval processes.

Phase One: LNG Terminal at Port Qasim

The first phase would involve an LNG import terminal and storage facility at Port Qasim.

The estimated cost of this phase is $1.7 billion. The facility would include four storage tanks, each with a capacity of 140,000 cubic metres.

Together, the tanks would provide 560,000 cubic metres of storage.

The terminal would also process LNG and convert it back into gas before supplying it to the transmission network. This process is known as regasification.

Why Is LNG Storage Important?

LNG storage can help operators manage the timing of deliveries and changes in demand.

For example, a terminal can receive LNG shipments and hold supplies before processing them. This may provide more flexibility when shipping schedules change or customers need different quantities of gas.

Storage can also support trading activities. Operators may be able to arrange shipments and services around market demand.

However, additional storage does not automatically guarantee lower gas prices. The final cost depends on several factors, including the price of imported LNG, shipping charges, operating expenses and financing costs.

The proposed terminal would therefore need a commercially viable operating model to deliver long-term benefits.

Phase Two: A 1,100-Kilometre Gas Pipeline

The second phase would add a long-distance pipeline to transport gas from the coastal terminal to inland markets.

The proposed pipeline would measure approximately 1,100 kilometres. Its diameter would range from 42 to 48 inches.

The reported design capacity is around 1.2 billion cubic feet of gas per day.

This pipeline could help supply industrial and commercial customers located far from Port Qasim. It would also connect the proposed terminal with inland gas markets.

However, constructing a pipeline of this size would require significant planning and investment.

The developers would need to finalise the route, obtain relevant approvals and arrange land access. They would also need to complete engineering work and secure construction contracts.

The final cost could change after these arrangements are completed.

The pipeline is a major reason the total estimated investment could rise from $1.7 billion to $4.4 billion.

How Would the Pakistan LNG Project Make Money?

The consortium plans to operate the facility as a commercial infrastructure business.

It expects to generate revenue from LNG storage, regasification, gas transmission and related services. The sponsors also want to sell services to multiple customers rather than depend entirely on one government-backed buyer.

This approach is often described as a merchant model.

Under such a model, the project operator seeks customers and earns revenue through commercial agreements. The structure can provide flexibility, but it also creates risks if demand is weaker than expected.

The sponsors plan to use several types of agreements, including long-term storage contracts and tolling arrangements.

A tolling agreement allows customers to pay for the use of infrastructure or processing services. A take-or-pay agreement generally requires a customer to pay for an agreed minimum quantity or capacity, even if it does not use all of it.

These arrangements could help provide more predictable revenue.

Nevertheless, the project will need enough customers to cover its operating costs, financing expenses and other obligations.

Proposed LNG Tariffs and Charges

The consortium has reportedly proposed separate charges for terminal services, storage and gas transmission.

The proposed tariffs are expected to change after the first ten years of operation.

These are reported proposed tariffs, not confirmed final charges. Domestic regasification tariffs would be submitted to OGRA for approval.

The tariffs will be important to the project’s commercial viability.

If charges are too high, potential customers may look for alternative supply arrangements. On the other hand, the operator will need sufficient revenue to cover the cost of building and maintaining the infrastructure.

The final pricing structure will depend on regulatory requirements and commercial agreements.

How Will the $4.4 Billion Project Be Financed?

The sponsors have reportedly proposed financing the project through a combination of debt and equity.

The proposed structure would use 70% debt and 30% equity.

Under the reported ownership plan, GVEP would hold a 26% stake. General Mediterranean Holding would hold 24%, while Khanjee Holdings and strategic co-investors would each hold 20%.

Local investors would be offered the remaining 10% of the equity in the first phase.

The consortium is reportedly seeking local investors willing to consider investments starting at $50 million each.

The sponsors have also identified potential institutional investors, including Grey Rock Investment Partners, KKR, Blackstone, Saudi Arabia’s Public Investment Fund and the Kuwait Investment Authority.

However, their participation remains subject to due diligence, investment approvals and definitive agreements.

No binding equity commitments from these potential investors have been confirmed in the reporting.

Therefore, their names should not be interpreted as confirmation that they have invested in the project.

The consortium must still secure the financing required to move the proposal towards construction.

Why Did the Earlier QatarEnergy-Linked Project Exit?

The proposed investment follows the withdrawal of Energas from a similar LNG terminal project.

Energas involved the Lucky Group and QatarEnergy. The venture reportedly abandoned its plan after changes in Pakistan’s energy policies and requirements, along with unresolved policy and fiscal issues.

The withdrawal highlights the challenges facing large energy projects.

An LNG terminal requires substantial upfront investment. Investors also need confidence that customers will use the facility and that the project can generate revenue over many years.

Changes in government policy, gas demand or market conditions can affect those expectations.

The new consortium is proposing a different commercial structure. It wants to serve multiple customers and offer storage, regasification, transmission and trading services.

However, the new proposal will face its own financial and regulatory challenges. Its success will depend on whether the sponsors can secure funding and establish a sustainable business model.

Could the Project Benefit Pakistan’s Economy?

If completed, the Pakistan LNG project could add important infrastructure to the country’s energy sector.

The construction phase could create demand for engineering services, equipment suppliers, contractors and other businesses. The terminal and pipeline could also support jobs during construction and operation.

In addition, the infrastructure could give industrial customers another way to access imported gas.

However, the project would not automatically reduce energy prices.

The cost of gas depends on international LNG prices, shipping, currency movements, terminal charges, pipeline tariffs and other expenses.

Customers would also need to consider whether imported gas is competitive with other energy sources.

The project’s wider economic benefits would depend on its final cost, financing arrangements, local procurement and the demand for its services.

For this reason, the investment should be assessed on its actual commercial terms rather than its headline value alone.

What Happens Next?

Several important steps remain before the proposed project can move forward.

First, the consortium needs to complete the applicable regulatory approval process. Its reported provisional licence application to OGRA is one part of that process.

Second, the sponsors must secure financing. Potential investor interest will need to turn into binding agreements.

Third, the developers must finalise the engineering plans, pipeline route and construction contracts. They will also need to address relevant site and environmental requirements.

Finally, the project needs customers willing to use the terminal and pipeline.

Long-term agreements with LNG suppliers and gas buyers could help support financing. They could also provide greater certainty about future revenue.

The government’s energy policy will remain important. The withdrawal of the earlier Energas project shows how policy changes can affect investment decisions.

Until the required financing and approvals are secured, the project remains a proposal.

Conclusion

The proposed Pakistan LNG project could attract up to $4.4 billion in investment for a new terminal and gas pipeline.

The first phase would establish an LNG terminal and storage facility at Port Qasim. The second phase would add a 1,100-kilometre pipeline to transport gas to inland markets.

The consortium also hopes to develop a regional LNG storage and trading hub.

However, major questions remain about financing, regulatory approval, construction costs and customer demand.

The project could strengthen Pakistan’s gas infrastructure if it moves forward. Its actual benefits will depend on whether the developers can secure funding, complete construction and offer commercially competitive services.

For now, the $4.4 billion figure represents the estimated cost of a proposed project, not confirmed investment already committed to Pakistan.