Pakistan Gives Nod to Gwadar-Nawabshah LNG Terminal & Pipeline Project

Pakistan has given the green light to the Gwadar-Nawabshah LNG terminal & pipeline project.

The Central Development Working Party (CDWP) gave nod to the project ahead of loans negotiations with Chinese authorities, The Express Tribune, a local English newspaper, reported Thursday. The CDWP also gave nod to railways upgradation project. China will provide loans for both the projects equivalent to 85 percent ($8.5 billion) of the cost of each project.

The estimated cost of Gwadar-Nawabshah LNG terminal & pipeline project is $2 billion including $1.4 billion Chinese loan. This project holds great importance for Islamabad as it wants to eventually link the country’s gas network with Iranian system.

The pipeline project will be included in the China-Pakistan Economic Corridor (CPEC) framework, the newspaper reported.

In the first phase of the project, the pipeline will follow the coastal pipeline corridor, which was formally established for the Iran-Pakistan gas pipeline. In phase two, a 90-kilometer patch will be constructed from Gwadar to Pakistan-Iran border to tie the national network with Iranian system.

The project will be completed in EPC turnkey mode in two years. The financial analysis of the project reveals that the project will be viable, if it operates at its full designed capacity of 1500 mmcfd gas, The Express Tribune reported.

The South Asian nation has been facing severe gas shortage since last few years. The LNG terminal and pipeline project is expected to ease import of the fuel. Engro Corp currently operates Pakistan’s first FSRU through Engro Elengy Terminal Private Limited (EETPL).