Pakistan: Gas Storage Development Systems

Sovereign Project | 55170-002

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 Details

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 government's 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 ADB's 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 ADB's energy policy, supporting the low-carbon transition, and TA outputs will include necessary due diligence to ensure compliance with the three conditions of ADB's 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
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Aleem, Asad
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance 05 Nov 2021
Fact Finding 04 Oct 2021 to 04 Oct 2021
MRM -
Approval 16 Dec 2021
Last Review Mission -
Last PDS Update 17 Dec 2021

TA 6886-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Dec 2021 30 Dec 2021 30 Dec 2021 31 Dec 2023 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
600,000.00 0.00 0.00 0.00 0.00 0.00 600,000.00 14 Jan 2022 0.00

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Title Document Type Document Date
Gas Storage Development Systems: Technical Assistance Report Technical Assistance Reports Dec 2021

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

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Related Publications

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Procurement Plan

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