Port of Qasim LNG infrastructure agreement

Both parties say that the agreement is another step forward to strengthening the long-term relationship between the two parties and will give Vopak access into the growing market for LNG in Pakistan.

“We’re excited to enter into this mutually beneficial partnership with Royal Vopak which will allow Vopak to realise its 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 CEO.

LNG import

The LNG facility located in Port Qasim in Pakistan, has been in operation since 2015 and is the first LNG import facility in Pakistan.

It 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.

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.

Engro’s business relationship with Royal Vopak dates back to 1997, when the then-named Engro Chemicals Limited entered into chemical storage and handling business in a joint venture with a predecessor of Royal Vopak.