China Petroleum Pipelines Bureau to Build LNG Terminal in Pakistan

China will build a $2.5 billion LNG terminal and a gas pipeline in Pakistan, Press Trust of India reported Thursday.

The LNG terminal will be set up in Gawadar in Balochistan province while the pipeline will bring gas from Iran to central Pakistan. Work on the project is expected to commence in November. 

"Chinese state firm China Petroleum Pipelines Bureau (CPP) has submitted technical and commercial bids," Mubeen Saulat, managing director of state-controlled Interstate Gas Systems (ISGS) said.

The terminal will have the capacity to handle 500 mmcfd (million cubic feet per day) of LNG and a floating storage gasification unit, Press Trust reported.

The Chinese firm will finance 85 percent of the project while Pakistani government will finance the remaining 25 percent.

The CPP will be financed through a loan by the Exim Bank which Pakistan will repay in the coming years.