US-backed consortium proposes $4.4bn LNG project

[Owaiz]

The lead sponsors Global Vision and Khanjee Holdings have no track record of building something of this scale or thr balance sheet to support it. What they have is some politically connected overseas Pakistanis, including a Senator from the Musharraf dictatorship.

The proposed terminal tariffs is also extortionate. Terminal tariffs for Engro and PGP are well under $1/mmBtu. Even for projects with land based storage like Mundra in India, total cost including transmission is unde $1.5/mmBtu.

It is still only a proposal and no agreements have been signed , so it is unfair to allege corruption at this stage, but the questions to ask are what expertise does Khanjee Holdings, with no track record, bring to the table that QatarEnergy lacked and why American or other companies with established track records are not interested in this project.

 

[RescueRanger]

Guys are getting happy or fighting over a “proposal”, these things take years to progress. They haven’t even drafted a Pc1 for this…

 

[IceCold]

For power plant, better use cheaper coal where Indonesia can provide with ease and no disturbant like getting LNG from Middle East

If it is to use Pakistan own gas production, then better build pipeline, no need to build expensive LNG processing.

Getting cheaper was never on the agenda, making dollars was, and this LNG deal, if it goes through, will be the same. All power plant deals made had investors who were either directly or indirectly part of the same government, forcibly put in power by the military junta of Asim Munir.

 

[Meengla]

Guys are getting happy or fighting over a “proposal”, these things take years to progress. They haven’t even drafted a Pc1 for this…

Right.
Anyone seeing the short video I posted, the due diligence will be extra on this huge deal: The foreign investors have seen how Pakistan's energy policies changed. They are not going to invest unless they are satisfied.
Anyway, I hope this project goes through thorough due diligence and launched asap after a successful due diligence from all sides. Pakistan's geography has given it an opportunity and the war on Iran is bringing the geographical benefits to Pakistan--at least potentially.

 

[Watandar]

Patwaris celebrating this like some sort of achievement, don't we all know the famous circular debt in the energy sector when power plants were being negotiated and now we have to pay them even if we don't use that energy or the power plant remains dormant.

This is part of Asim Munir's policy of bribing/coddling Trump to stay in power. We have seen the money put into crypto, the turnover of PIA assets in NY to Trump friend Witkoff, the purchase of one US LNG tanker in 2025 and now this long term arrangement of expensive LNG purchases from the US when there are so many cheaper and closer alternatives available.

One big flaw in this approach is that the old IPP agreements, which resulted in expensive electricity that made life miserable for the consumer and exports uncompetitive, are in trouble because of the solar revolution. So how are you going to pay for this expensive LNG on top of that ??

Another major flaw is Trump and his oil donors will be out of power in 2 years time and the incoming Dems will not care that you are buying expensive energy from them. They will instead see it as leverage.

Once again short term Establishment thinking that will harm the country over the long term. I think we also now know that those IPP agreements, which were as usual blamed on the hapless politicians, was the work of Establishment as well.

 

[RescueRanger]

Right.
Anyone seeing the short video I posted, the due diligence will be extra on this huge deal: The foreign investors have seen how Pakistan's energy policies changed. They are not going to invest unless they are satisfied.
Anyway, I hope this project goes through thorough due diligence and launched asap after a successful due diligence from all sides. Pakistan's geography has given it an opportunity and the war on Iran is bringing the geographical benefits to Pakistan--at least potentially.

Same id love for this to go ahead at full speed.

 

[hydrabadi_arab]

After this government is gone and the new one cant keep up with all the benefits it would be supposed to pay to these "investers" , all of them will be taking us to international courts and it will be all again the Reko Dik case all over. If you think that was bad ,? Now imagine 10 such lost cases in international courts each asking us to pay $4-6 billion as penalties.

Did you read? This isn't take and pay contract.