Vopak has signed an agreement to acquire a 29% share in Elengy Terminal Pakistan (ETPL) from Engro Corporation.
ETPL's wholly owned subsidiary, Engro Elengy Terminal 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.
It comprises an LNG jetty including a 7.5 km high pressure gas pipeline. This pipeline is connected to the grid of Engro Elenergy Terminal's sole customer Sui Southern Gas Company, a Pakistan government owned entity.
The liquified gas is supplied, under long-term contracts, via LNG carriers from various exporting countries to the FSRU, which is moored to the terminal 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 has a growing energy demand in which the share of gas is expected to increase. It is mainly used for power supply for its growing population, industrial usage and as feedstock for fertilisers.
Once the transaction is complete, the shareholders in the terminal will be Engro Corporation, Vopak and the International Finance Corporation.
Ghias Khan, Engro Corporation president and CEO, says: 'We are excited to enter into this mutually beneficial partnership with 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.'
Chairman of the executive board and CEO of Vopak Eelco Hoekstra adds: 'This new step in our cooperation gives Vopak an excellent entry into the growing Pakistan LNG market. This fits very well with our ambition to grow and diversify our service offering in LNG.'
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