China, UAE likely to invest $500m in Pakistan's LNG projects

ISLAMABAD: China and United Arab Emirates (UAE) are likely to invest $500 million in two Liquefied natural gas (LNG) projects in Pakistan, ARY News reported citing sources.

According to sources, the China National Chemical Engineering Company (CNCEC) and LNGFlex, a subsidiary company of Bison in the United Arab Emirates to invest in the construction of LNG terminals and supply.

Sources further said the companies have planned to invest in both virtual and non-virtual projects as they want to build a virtual LNG project, receiving terminal and storage facility at Karachi port.

Earlier, Pakistan and United Arab Emirates (UAE) signed several multi-billion dollar MoUs in a range of areas here to boost economic and strategic cooperation between the two countries.

Read more: Pakistan, UAE sign MoUs worth multi-billion dollars

It is pertinent to mention here that in June, Bloomberg reported that Pakistan failed to secure liquified natural gas (LNG) from the spot market in its first attempt in about a year, as no supplier seems to budge to the cash-strapped nation’s offer.

Traders, on the condition of anonymity, told the publication that Pakistan LNG Limited’s (PLL) bid to purchase six shipments for October to December closed with no companies responding to the offer.

The report said that many overseas banks weren’t accepting letters of credit Pakistani counterparts to purchase LNG shipments, making suppliers reluctant to offer cargoes, Bloomberg reported last week.

Pakistan’s inability to buy gas will aggravate energy shortages in the country, increasing the frequency of blackouts and curbing the supply of fuel to industrial consumers.