| Project Detail |
Project Name Gas Storage Development Systems
Project Number 55170-002
Country Pakistan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6886-PAK: Gas Storage Development Systems
Technical Assistance Special Fund US$ 600,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Private sector development
Sector / Subsector
Energy / Energy sector development and institutional reform
Gender Equity and Mainstreaming Some gender elements
Description The knowledge and support technical assistance (TA) will (i) analyze and recommend gas storage modalities and options across Pakistan based on the safety, reliability, cost, and effect on amenities as prime considerations; (ii) propose a policy, legal, and regulatory framework to develop, operate, and maintain gas storage facilities following international best practice; and (iii) provide advisory services on a transaction model, financial structure, and development road map for the first gas storage facility in the country. The findings will assist the Government of Pakistan to design and approve optimal storage options (underground or overground) across multiple locations, a capital and ownership structure and road map for each option, and adjustments to the hydrocarbon legal and regulatory framework.
Project Rationale and Linkage to Country/Regional Strategy The TA supports the recommendation of the governments integrated energy plan to deregulate the gas value chain and encourage private sector participation. The government does not intend to offer any sovereign guarantees, capacity charges, or offtake commitments for future LNG terminals and storage; hence, operators would arrange their own buyers, as well as third-party access to pipeline capacity. The TA is linked to the operational priorities of ADBs Strategy 2030: (i) addressing remaining poverty and reducing inequalities by cutting energy poverty and lowering gas tariffs; (ii) accelerating progress in gender equality through access to year-round energy for rural areas for cleaner cooking and cottage industries; (iii) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability by reducing carbon footprints through the replacement of furnace oil and diesel-powered plants with gas-powered plants that are available year-round; (iv) strengthening governance and institutional capacity; and (v) fostering regional cooperation and integration through gas pipeline interconnections with neighboring countries (Turkmenistan and Iran), with options to store gas. The TA is aligned with ADBs energy policy, supporting the low-carbon transition, and TA outputs will include necessary due diligence to ensure compliance with the three conditions of ADBs Energy Policy for any subsequent ADB-assisted projects involving natural gas.
Impact Gas market equilibrium established.
Project Outcome
Description of Outcome Gas supply chain strengthened, and strategic reserves requirements met.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Gas storage infrastructure across Pakistan based on safety, reliability, cost, and effect on amenities as primary considerations assessed.
Legal, policy, and regulatory framework to build, operate, and maintain gas storage facilities developed.
Transaction advisory services for an optimal project capital structure and road map for financial closure developed
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide |
