China and the United Arab Emirates (UAE) are considering investing $500 million in two liquefied natural gas (LNG) projects in Pakistan.
The China National Chemical Engineering Company (CNCEC) and LNGFlex, a subsidiary of Bison in the UAE, are expected to contribute to the development of LNG terminals and supply infrastructure.
Sources reveal that these companies have outlined plans for both virtual and non-virtual projects. The aim is to establish a virtual LNG project, which includes a receiving terminal and storage facility at Karachi port.
Earlier, Pakistan and the UAE inked several multi-billion-dollar Memoranda of Understanding (MoUs) to enhance economic and strategic cooperation between the two nations.
It’s worth noting that in June, Bloomberg reported that Pakistan faced challenges in securing liquefied natural gas (LNG) from the spot market.
The attempt to purchase six shipments for October to December through Pakistan LNG Limited (PLL) was unsuccessful, as no suppliers responded to the offer.
Overseas banks were reportedly unwilling to accept letters of credit from Pakistani counterparts, contributing to suppliers’ reluctance to provide LNG cargoes.
The failure to secure gas may worsen energy shortages in Pakistan, leading to more frequent blackouts and limiting fuel supply to industrial consumers.
