Trump-Backed Group Plans $4.4 Billion LNG Investment After Qatar’s LNG Exit

A coalition of US-affiliated businesses is proposing a $4.4 billion investment in an LNG project in Pakistan, following the withdrawal of a similar proposal led by Energas, a partnership between the Lucky Group and QatarEnergy. This move comes after the Pakistani government altered its energy policies and unresolved fiscal matters prevented Energas from proceeding.

The new consortium includes Global Vision Energy Partners (GVEP), Khanjee Holdings, and strategic investors from multiple nations, along with General Mediterranean Holding based in Luxembourg.

The project is planned in two stages, with the first phase focusing on constructing an LNG terminal and storage facility at Port Qasim. The terminal, capable of storing 560,000 cubic meters of LNG, is expected to handle approximately 35 billion cubic feet (BCF) of LNG annually. This phase alone will cost $1.7 billion. The second phase involves constructing a 1,100 km pipeline to transport gas to upcountry markets, which would have a capacity of 1.2 billion cubic feet per day (BCFD). The total project cost would then reach $4.4 billion.

The proposed LNG terminal aims to serve Pakistan's domestic needs while establishing a hub for suppliers from the US and the Middle East to trade and store LNG. Pakistan currently lacks any LNG storage, making it dependent on international imports and their associated supply chains and prices. Port Qasim, the potential location for the project, already has port infrastructure and marine access for LNG carriers.

Its location outside the Strait of Hormuz, a critical global energy shipping route, also plays a role in the site selection.

The project will be developed, owned, and operated by a special purpose vehicle (SPV), a distinct legal entity created to hold the project's assets and liabilities, thereby isolating financial risks. The project does not rely on a single government-backed off-take arrangement. The consortium has been granted permission to consider the project under the US Trade and Development Agency's project preparation program, and it may receive up to 10% equity investment from local investors.

Strategic co-investors, such as global energy and infrastructure funds, are also expected to participate, subject to due diligence and agreement. The proposed financing structure includes a debt-to-equity ratio of 70:30.