GEI to invest $ 350-450m in LNG project

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GEI to invest $ 350-450m in LNG project

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Global Energy Infrastructure Limited would invest $ 350-450 million in LNG Supply Project.

17 August,2012 06:02 pm

The Chairman GEI, Ahmet Caliskan in a meeting with Chairman Board of Invcestment (BOI) apprised that the GasPak project comprises the construction of an LNG Terminal at Port Qasim Karachi; interconnection pipeline up to SSGC designated gas collection point and the supply of Re-gasified LNG (RLNG) to Pakistan.Project sponsors have set up two Special Purpose Vehicles (SPVs) for this project, Global Energy Infrastructure Limited (GEI) and GEI Pakistan (Pvt.) Limited (GEIP), respectively.Total cost of the project, as mentioned above, would be between $ 350-450 million. These funds would become part of the Foreign Direct investment in Pakistan. The company has also arranged bridge financing from two private equity groups in Turkey, covering the complete cost of the projects.This ensured that the company has access to funds at all times during the construction phase, mentioned by the GEI Head.However, due to the Group’s extensive experience in the energy sector around the world, the company, in a short span of time, has made swift progress towardscommencing construction and operations of the terminal. To date, almost $ 20 million has been spent.The pre-construction activities consider of securing $ 350 million financing for the project arranging insurance cover for construction and operations phases completing pre-construction works and awarding EPC contract securing LNG supplies from producers around the globe.Securing regulatory approval from various government departments has been done while all of the above activities have been completed. As such, we are ready to commence construction of the Terminal at short notice, further added by Ahmet Caliskan.