Engro Corporation and Royal Vopak sign LNG infrastructure agreement
Acquisition by Vopak of 29% share in ETPL
20 July 2018 – Karachi, Pakistan / Rotterdam, the Netherlands
Engro Corporation Ltd, (Engro Corporation) of Pakistan and Royal Vopak of the Netherlands today announce the signing of a Share Purchase Agreement in which Vopak will acquire a 29% share in Elengy Terminal Pakistan Ltd (ETPL).
ETPL’s wholly owned subsidiary, Engro Elengy Terminal (Pvt) Ltd (EETPL) owns an LNG facility which is located in Port Qasim in Pakistan, adjacent to the Engro Vopak chemical terminal on the mainland side of the channel into Port Qasim. The facility has been in operation since 2015 and is the first LNG import facility in Pakistan.
The facility consists of an LNG jetty including a 7.5 km high-pressure gas pipeline. This pipeline is connected to the grid of EETPL’s sole customer Sui Southern Gas Company Ltd, a Pakistan government-owned entity. EETPL holds a 15 year Floating Storage and Regasification Unit (FSRU) time charter.
The liquified gas is supplied, under long-term contracts, via LNG carriers from various exporting countries to the FSRU, which is moored to the EETPL jetty and connected to its pipeline. The regasification takes place on the FSRU and the gas is transferred to the mainland where, under high pressure, it enters the grid of the customer.
Pakistan is a market with more than 200 million people and has a growing energy demand in which the share of gas is expected to increase. Gas is mainly used for power supply for the growing population, industrial usage and as feed stock for fertilizers.
After completion of this transaction, the shareholders in ETPL will be Engro Corporation, Vopak and the International Finance Corporation.
This acquisition is subject to certain conditions, including customary regulatory and shareholder approvals, and closing is anticipated to take place in the fourth quarter of 2018.
Read more: vopak.com/newsroom