Pakistan Gasport Ltd. is scheduled to sign a $98 million loan agreement with Overseas Private Investment Corp. of the U.S. to build a liquefied natural gas terminal in Karachi.
The deal is to be signed tomorrow, Razi Ahmed, director Pakistan Gasport, said in an e-mailed statement. The $166 million project will help power producers lower costs, according to the statement.
Demand for energy in Pakistan exceeds supply by as much as three times. Daily electricity outages have forced textile and engineering factories to close and have caused riots across the country.
The LNG will be sold to independent power producers which are switching to gas from furnace oil to benefit from a 10 percent reduction in fuel costs, Pakistan Gasport said.