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Vopak inks deal with Engro to buy 29% of Pakistan's first LNG terminal

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Reuters are reporting that Global independent tank storage company Vopak announced on 20 July that it has inked an agreement with Engro Corp Ltd to buy a 29% stake in Pakistan’s first LNG import facility.

Vopak will invest in Elenergy Terminal Pakistan Ltd, whose subsidiary Engro Elenergy Terminal Pte Ltd (EETPL) owns the LNG facility in the country’s Port Qasim.

“This new step in our cooperation gives Vopak an excellent entry in the growing Pakistan LNG market,” Eelco Hoekstra, Chairman of the Executive Board and Chief Executive Officer of Vopak, said.

“This fits very well our ambitions to grow and diversify our service offering in LNG.”

The transaction is expected to close in the fourth quarter, Vopak said.

Jefferies analysts said in a note that the acquisition will cost US$38 million.

The facility, which started operations in 2015, consists of an LNG jetty and a pipeline connected to a Floating Storage and Regasification Unit (FSRU) which has been chartered by EETPL for 15 years.

The pipeline supplies gas directly to the grid of EETPL’s sole customer, state-owned Sui Southern Gas Company Ltd.

The facility is adjacent to the Engro Vopak chemical storage terminal jointly owned by the two companies.

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