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Thursday February 22, 2024

UAE-China consortium may invest $500m in two LNG projects in Pakistan

By News Desk
December 10, 2023

ISLAMABAD: A consortium of two companies from the UAE and China is interested in investing up to $500 million in the construction of two LNG projects in Pakistan, which include virtual and non-virtual projects of LNG terminals, supply and import. The investors involved in the consortium have started the process of discussion with Pakistani authorities.

According to Ogra sources, the consortium comprising UAE company Bison Energy and China National Chemical & Engineering Company wants to set up a virtual LNG project at Kemari and a non-virtual LNG project at Port Qasim. 

A liquefied natural gas (LNG) container arrives at a storage station in east of Tokyo, Japan in this undated image. — AFP
A liquefied natural gas (LNG) container arrives at a storage station in east of Tokyo, Japan in this undated image. — AFP 

The consortium has both virtual and non-virtual projects licences. Ogra sources said that discussions were still ongoing, but if the projects started, the investment could be up to $500 million.

In virtual LNG projects, virtual trucks are used instead of pipelines for LNG delivery. The consortium also wants to set up an LNG project at Port Qasim and use its own distributor instead of Sui Southern or Northern Gas Supply Companies to deliver gas to consumers from the project. Sources said there was no government guarantee or capacity payments under consideration in the projects.