Dutch tank storage company Vopak said it will acquire in total 44 percent in Elengy Terminal Pakistan in two separate transactions with International Finance Corporation (IFC) and Engro Corporation.
The acquisitions include the previously agreed deal with Engro Corp to buy a 29 percent stake in Pakistan’s first liquefied natural gas (LNG) import facility.
ETPL’s unit, Engro Elengy Terminal owns the LNG facility 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 consists of an LNG jetty including a 7.5 km high-pressure gas pipeline that is connected to the grid of EETPL’s sole customer, the state-owned, Sui Southern Gas Company.
EETPL holds a 15-year floating storage and regasification unit (FSRU) time charter, Vopak noted in its statement on Tuesday.
Liquefied 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.
Pakistan’s energy demand is growing Vopak said, adding that 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 fertilizers.
After completion of this transaction, the shareholders in ETPL will be Engro Corporation and Royal Vopak.
This closing of the acquisition, subject to regulatory and shareholder approvals, is expected to take place in the first quarter of 2019.
T he first transaction for the 29 percent stake agreed with Engro Corp is still expected to close in the fourth quarter of 2018.