LNG storage in Pakistan is the aim of a $4.4bn US-backed plan at Port Qasim. Its tariffs would add about $6.84 per mmBtu in the first decade.

LNG storage in Pakistan does not exist today: every imported cargo has to be turned back into gas and used almost as soon as it arrives. A private consortium of US companies, which Dawn describes as backed by the Trump administration, now wants to change that with an integrated project worth up to $4.4bn at Port Qasim, Dawn reported on 2 November. The plan comes as Pakistan heads into winter with Qatar’s LNG supplies halted until late December, which makes the question of who stores gas, and at what price, more than academic.

The short version

• Global Vision Energy Partners and Khanjee Holdings lead a consortium proposing four LNG tanks with 560,000 cubic metres of storage at Port Qasim, costing $1.7bn in phase one.
• Phase two is a 1,100km, 42–48-inch pipeline upcountry with capacity of about 1.2bn cubic feet a day, taking the total to $4.4bn.
• Proposed charges are $4.93 per mmBtu for terminal and storage and $1.91 for transmission in the first ten years, falling to $2.20 and $0.92 after that.
• No binding equity commitments have been confirmed yet.

What happened

According to documents seen by Dawn, the consortium has incorporated a special-purpose company, reportedly secured consent from the Port Qasim Authority for a site, and applied to the Oil and Gas Regulatory Authority (OGRA) for a provisional licence. Government facilitation has been conveyed through the Ministry of Maritime Affairs and the Petroleum Division. The project has been approved for consideration under the US Trade and Development Agency’s project preparation programme, and may receive partial financing from the US Development Finance Corporation, backed by US Export-Import Bank guarantees for equipment and services.

The four tanks would each hold 140,000 cubic metres. With three inventory turns a year, Dawn reports throughput of about 35.6bn cubic feet of LNG annually, with around 11.9bn cubic feet stored per cycle. Financing is planned at 70% debt and 30% equity. The proposed equity split is Global Vision Energy Partners 26%, General Mediterranean Holding 24%, Khanjee Holdings 20%, strategic co-investors 20% and local investors 10%, with local tickets starting at $50m. Funds including KKR, Blackstone, Saudi Arabia’s Public Investment Fund and the Kuwait Investment Authority are named as possible co-investors, but none has committed.

Storage and pipeline charges would more than halve after year ten

Proposed tariffs, US$ per mmBtu

Terminal + storage + transmission, first 10 years

$6.84

Terminal + storage, first 10 years

$4.93

Transmission, first 10 years

$1.91

Terminal + storage + transmission, thereafter

$3.12

Why it matters

Without LNG storage, Pakistan cannot buy cargoes when prices are low and hold them for winter, and any disruption at sea feeds straight into gas cuts. Port Qasim also sits outside the Strait of Hormuz, which Dawn notes as an advantage. The catch is cost: about $6.84 per mmBtu in combined storage and transmission charges in the first decade (Knock-On calculation) would sit on top of the LNG price itself. The model is also different from the past. The company says it will not depend on a single government-backed buyer, relying instead on long-term tolling and storage deals, take-or-pay commitments where appropriate, and merchant sales to large consumers.

The knock-on effects

First order: LNG storage in Pakistan becomes a business, not just a state job

A merchant model means industrial users could contract gas and storage directly, rather than relying only on state-managed allocations. That matters most in winters like this one, when spot replacement cargoes can cost far more than contract supply.

Second order: a US stake in Pakistan’s energy system

With USTDA involvement and possible DFC and US Exim support, the project would deepen US commercial ties in Pakistan’s gas sector, alongside Qatar as the main supplier. A similar project by Energas, a group including the Lucky Group and QatarEnergy, was abandoned, citing fundamental changes in Pakistan’s energy policy, Dawn reports.

Third order: pressure on gas pricing

OGRA must approve the domestic regasification tariff, while storage and tolling would be market-based. How those charges are passed on will shape gas costs for fertiliser plants, power producers and exporters, especially as Pakistan renegotiates its Qatar LNG volumes.

Who could benefit

• Large industrial gas users: merchant capacity could give textile mills and other factories a route to secure winter supply.
• Local investors: up to 10% of the equity is reserved for them, from $50m per investor.
• Port Qasim and construction firms: a $1.7bn first phase and a 1,100km pipeline imply sizeable local works.

Who may face pressure

• Gas consumers: about $6.84 per mmBtu in combined charges in the first decade would raise the delivered cost of stored gas.
• State gas utilities: a private pipeline selling to large users could take some of their most valuable customers.

What to watch

• OGRA’s decision on the provisional licence application.
• Whether any named co-investor makes a binding equity commitment.
• Final costs once engineering and construction contracts are signed, which Dawn says will set the final figure.
• The government’s response to PSO’s revised Qatar LNG proposal, sought by 3 November.

Sources

• Dawn, US-backed consortium proposes $4.4bn LNG project, 2 November 2026

This is analysis, not investment advice. Figures are as of 2 November 2026. Knock-On is not affiliated with any political party.