IFC invests in Engro Elengy LNG terminal

The International Finance Corp. (IFC), a member of the World Bank Group, has announced that it is making an equity investment and providing a loan of up to US$20 million to Engro Elengy Terminal Private Ltd (EETPL) for Pakistan’s first LNG import terminal.

In a statement on its website, IFC said that the investment will go towards the design, construction and operation of the LNG terminal at Port Qasim, near Karachi. The terminal utilises a floating storage and regasification unit (FSRU) provided by US-based Excelerate Energy, and is expected to handle up to 4.5 million tpy of LNG.

Khalid Subhani, CEO of Engro Corp, said: “Importing natural gas is a more economically viable source for power generation, especially when Pakistan’s indigenous gas resources are diminishing. The new facility will also help diversify Pakistan’s fuel supply mix and open one of the largest gas markets in Asia to the global LNG market.”

The project is part of the strategy of the World Bank Group and IFC to mobilise up to US$10 billion in investments to address Pakistan’s power shortage.

Mouayed Makhlouf, IFC Regional Director for the Middle East and North Africa, said: “Our aim is to help Pakistan’s private sector develop infrastructure that will ensure an affordable, reliable and sustainable energy supply […] This investment will develop a critical asset to help address the country’s severe gas supply deficit, cut fuel costs and mitigate climate change. We hope it will also encourage the development of additional LNG supply infrastructure in Pakistan and other developing countries.”

Edited from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/regasification/02092015/ifc-invests-in-engro-elengy-lng-terminal-1232/