Engro Corporation and Royal Vopak sign LNG infrastructure agreement

Engro Corporation and Royal Vopak sign LNG infrastructure agreement


Engro Corporation of Pakistan and Royal Vopak of the Netherlands have signed 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 feedstock for fertilisers.

After completion of this transaction, the shareholders in ETPL will be Engro Corporation, Vopak  and the International Finance Corporation.

“Our relationship with industry leader Royal Vopak is over two decades strong, and today’s announcement is another step towards further strengthening that relationship. We’re excited to enter into this mutually beneficial partnership with Royal Vopak which will allow Vopak to realise their strategy of entering the Pakistan energy market and will pave the way for Engro and Vopak to collaborate in further ventures at home and abroad using their combined resources and expertise,” said Ghias Khan, Engro Corporation President and Chief Executive Officer. “Engro has always endeavored to bring the best of the world to Pakistan because we recognize that developing markets require FDI in infrastructure and projects to remain on a path of progress.”

Eelco Hoekstra, Chairman of the Executive Board and Chief Executive Officer of Royal Vopak, said: “We very much look forward to further build, inside and outside of Pakistan, on our excellent partnership with Engro. This new step in our cooperation gives Vopak an excellent entry in the growing Pakistan LNG market. This fits very well our ambitions to grow and diversify our service offering in LNG.”

For more information, visit: www.vopak.com

20th July 2018