China, UAE likely to inject US $ 500 million into two LNG projects in Pakistan

Islamabad: China and the United Arab Emirates (UAE) are anticipated to inject US $ 500 million into two liquefied natural gas (LNG) projects in Pakistan, Pakistani officials said.

The China National Chemical Engineering Company (CNCEC) and LNGFlex, a Bison subsidiary in the UAE, are set to contribute to the development of LNG terminals and supply infrastructure, the officials elaborated.

These companies have outlined plans to invest in both virtual and non-virtual projects, intending to establish a virtual LNG project, a receiving terminal, and a storage facility at Karachi port.

Earlier, Pakistan and the UAE inked several multi-billion dollar Memorandums of Understanding (MoUs) across various sectors to enhance economic and strategic cooperation.

Pakistan faces challenges securing LNG from the spot market, contributing to energy shortages, frequent blackouts, and limitations on fuel supply to industrial consumers.