China to Begin $2.5 Billion LNG Terminal Construction, Gas Pipeline in Pakistan

The Economic Times reported that China will soon begin construction of a $2.5 billion liquefied natural gas terminal in Pakistan and the Iran-Pakistan gas pipeline under the China-Pakistan Economic Corridor project.
As quoted in the market news:

The LNG terminal will be set up in Gawadar in Balochistan province while the pipeline will bring gas from Iran to central Pakistan.
Mubeen Saulat, managing director of state-controlled Interstate Gas Systems (ISGS), told media that the Chinese will be awarded contracts for the two projects by November when the construction work on the two projects is expected to start.
“Chinese state firm China Petroleum Pipelines Bureau (CPP) has submitted technical and commercial bids,” said Saulat.
The terminal will have the capacity to handle 500 mmcfd (million cubic feet per day) of LNG and a floating storage gasification unit.
“The dual projects will be completed at the cost of about $2.5 billion, 85 per cent of the investment will be done by the Chinese company while government of Pakistan will provide 15 per cent of equity,” he Saulat.
The CPP will be financed through a loan by the Exim Bank which Pakistan will repay in the coming years.
He said that the security aspects of the two projects were already taken care of and Pakistan will provide security for the pipeline and terminal while the camps of Chinese workers will be secured by a Chinese security firm.

Click here to read the full Economic Times report.