Gwadar-Nawabshah LNG Terminal

This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor and the Center for Media and Democracy.

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Gwadar-Nawabshah LNG Terminal is a shelved LNG terminal proposal in Balochistan province, Pakistan.

Location

The terminal is proposed for Gwadar Port, Balochistan province.

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Project Details

• Owner:
• Parent: Government Holding Limited, China Petroleum Pipeline Bureau
• Location: Gwadar Port, Balochistan province, Pakistan
• Coordinates: 25.1106, 62.3396 (exact)
• Capacity:
• Proposed Capacity: 4 mtpa, 0.57 bcfd
• Status: Proposed
• Type: Import
• Start Year:

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

On April 20, 2015, China's National Energy Administration and Pakistan's Ministry of Petroleum & Natural Resources signed a framework agreement for the Gwadar-Nawabshah LNG Terminal and pipeline project. The government awarded the project to China Petroleum Pipeline Bureau on a build-own-operate (BOO) basis in October 2016; under the arrangement, China will provide 85% of financing whereas Pakistan will contribute 15% of equity. The April 2015 agreement was originally valid for one year and its term expired on April 19, 2016. Pakistan and China, however, agreed to extend it for one more year until April 19, 2017.

In June 2017 it was reported that the Pakistani government had abandoned the US$2 billion Gwadar-Nawabshah gas pipeline and terminal. The government did so after pressure from the US and Saudi Arabia to drop the project, as Pakistan hoped to to lay an additional 80-100 km of pipeline from the project to the Iranian border once US sanctions on Iran were dropped.

In August 2018 it was reported that the project would be revived by Pakistan's new government, led by the Pakistan Tehreek-e-Insaf (PTI).