Pakistan approves sovereign guarantees for LNG pipeline and Jamshoro power plant

The Pakistan cabinet's Economic Coordination Committee (ECC) has approved Rs175 billion for the construction of the LNG-III pipeline from Karachi to Nawabshah, and will provide sovereign guarantees on Rs43 billion of commercial loans for the project developers SSGCL and SNGPL.

The government's Petroleum Division will look at the options for realising the project as a PPP. The ECC also approved sovereign guarantees for Rs39 billion for the construction of two 660MW coal-fired units at Jamshoro. The $1.5 billion project has already received a $900 million loan commitment from the Asian Development Bank and $220 million from the Islamic Development Bank.