A Trump-backed American consortium is considering a $4.4 billion investment in Pakistan’s energy sector. The proposed project includes a major LNG terminal and an approximately 1,100-kilometre gas pipeline.

The development comes days after a major LNG venture involving Pakistan’s Lucky Group and QatarEnergy collapsed. Unresolved policy disputes reportedly affected that investment plan.

The proposed American project could expand Pakistan’s gas import infrastructure. It also aims to introduce large onshore LNG storage facilities and strengthen Port Qasim’s role in energy trading.

However, the investment remains at the proposal stage. Major financing arrangements and binding investment commitments have yet to be finalised.

Global Vision Energy Partners (GVEP), Khanjee Holdings, and Luxembourg-based General Mediterranean Holding are leading the consortium. They are working with potential international financial and infrastructure investors.

The proposal has received backing from the Trump administration. It has also been approved for consideration under the US Trade and Development Agency’s project preparation programme.

The consortium may also seek financial support from the US International Development Finance Corporation. Export credit guarantees from the Export-Import Bank of the United States are another possible funding option.

These arrangements could support the purchase of American equipment, technology, and services.

Port Qasim Selected for Proposed LNG Terminal

The consortium has identified Port Qasim near Karachi as the proposed location for its LNG import and storage facilities. Project sponsors have reportedly received consent from the Port Qasim Authority regarding the site.

They have also submitted an application to the Oil and Gas Regulatory Authority (OGRA) for a provisional licence.

A separate special purpose vehicle has been incorporated to oversee the project’s development, ownership, and operations. The Ministry of Maritime Affairs and Petroleum Division have reportedly indicated support for facilitating the proposal.

The project would be developed in two phases. The first phase would involve an estimated investment of $1.7 billion.

It would include an LNG terminal and four large storage tanks. Each tank would have a capacity of approximately 140,000 cubic metres.

Together, the tanks would provide storage capacity of 560,000 cubic metres. The terminal is expected to handle between 35 and 35.6 billion cubic feet of natural gas annually.

This estimate assumes three inventory turnover cycles each year.

Proposed 1,100-Kilometre Gas Pipeline

The second phase would involve building an approximately 1,100-kilometre gas transmission pipeline. It would connect the southern coastal region with major consumption centres in northern Pakistan.

The proposed pipeline would have a diameter of 42 to 48 inches. It is designed to transport around 1.2 billion cubic feet of gas daily.

Including the pipeline, the total proposed investment would reach $4.4 billion.

The consortium is also seeking participation from major global investment institutions and sovereign wealth funds. Potential strategic investors reportedly include Grey Rock Investment Partners, KKR, Blackstone, Saudi Arabia’s Public Investment Fund, and the Kuwait Investment Authority.

Investment Opportunities for Pakistani Investors

The sponsors are offering Pakistani investors an opportunity to acquire up to 10% of the proposed equity. Indicative investment commitments would begin at approximately $50 million per participant.

The proposed ownership structure assigns 26% to GVEP and 24% to General Mediterranean Holding. Khanjee Holdings would hold 20%, while international strategic investors would receive another 20%.

Local investors would collectively hold the remaining 10%.

The financing plan proposes a structure involving 70% debt and 30% equity. However, the final funding arrangements have not been confirmed.

Challenges Facing the Proposed LNG Project

Unlike conventional LNG projects, the proposed venture aims to operate as a merchant infrastructure platform. It would not depend heavily on government-backed long-term purchase agreements.

The project could improve LNG handling and transportation for Pakistan’s industrial sector. Better infrastructure may also help address supply limitations and support manufacturing activity.

However, several challenges could affect its financial viability. Pakistan’s energy market continues to face circular debt, uncertain demand, and high imported gas costs.

Growing renewable energy adoption could also influence future gas consumption. Consumers’ sensitivity to gas prices presents another challenge for long-term investment planning.

The Trump-backed proposal comes as Pakistan seeks foreign investment and stronger energy security. A major LNG storage and transportation network could address infrastructure gaps and create opportunities for private-sector participation.

Nevertheless, the project still requires regulatory approvals, financing arrangements, and firm investment commitments. Its progress will depend on whether the consortium can resolve these requirements and move towards implementation.

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