US-backed consortium proposes $4.4bn LNG project

• Proposal envisages four tanks holding 560,000 cubic metres at Port Qasim in first phase of the $4. 4bn plan that also includes a 1,100km upcountry gas pipeline • Project would charge $4. 93 per mmBtu for terminal and storage, $1. 91 for transmission over first decade ISLAMABAD: A private consortium of US companies, backed by the Trump administration, is pushing for an investment of up to $4. 4 billion in an integrated liquefied natural gas (LNG) project in Pakistan, covering imports, storage, re-gasification, gas transmission and sales to large consumers on a ‘merchant basis’. The development comes after Energas, an earlier frontrunner consisting of the Lucky Group and QatarEnergy, abandoned a similar project citing fundamental changes in Pakistan’s energy policy and requirements, as well as longstanding unresolved policy and fiscal issues.

The US consortium comprises Global Vision Energy Partners (GVEP) and Khanjee Holdings, both related firms, along with strategic co-investors from other countries and General Mediterranean Holding, a Luxem­bo­urg-based US financial conglomerate. The sponsors have reportedly sec­ured consent from the Port Qasim Aut­hority for the proposed project site. An application has also been filed with the Oil and Gas Regulatory Authority (Ogra) for a provisional licence. A special purpose vehicle (SPV), a separate legal entity established to hold specific assets and liabilities and isolate financial risks, has been incorporated. Government facilitation has also 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 US Trade and Development Agency’s (USTDA) project preparation programme. It may also…