Vopak acquires 29% shareholding in Elengy Terminal Pakistan

Dutch tank storage company Royal Vopak has closed the acquisition of a 29% shareholding in Elengy Terminal Pakistan (ETPL).

The company signed an agreement in July with Pakistan-based conglomerate Engro for the acquisition of a 29% stake in ETPL.

Vopak acquired 24% from Engro and 5% from International Finance Corporation (IFC). The deal is expected to bring in a total foreign direct investment of around $31.4m.

ETPL’s 100%-owned subsidiary Engro Elengy Terminal (EETPL) owns a liquefied natural gas (LNG) facility in Port Qasim in Karachi, Pakistan.

EETPL delivers gas to Pakistan state-owned entity Sui Southern Gas Company (SSGC).

The LNG facility, which became operational in 2015, is located near the Engro Vopak chemical terminal on the mainland side of the channel into Port Qasim. So far, the facility has regasified 590 billion cubic feet of gas.

It comprises an LNG jetty, including a 7.5km high-pressure gas pipeline connected to the SSGC grid.

Engro president and CEO Ghias Khan said: “We’re excited to enter this mutually beneficial partnership with Royal 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.”

EETPL is operating a Floating Storage and Regasification Unit (FSRU) leased for a period of 15 years.

Following regasification on-board the FSRU, the gas is sent to the mainland where it enters SSGC’s grid.

Last month, Vopak signed an agreement to acquire IFC’s remaining shares in ETPL.

Once the transaction is completed, Vopak will increase its stake in ETPL to 44%. Engro will own the remaining 56%.

Royal Vopak CEO Eelco Hoekstra said: “This new step in our cooperation gives Vopak an excellent entry in the growing Pakistan LNG market. This fits very well with our ambitions to grow and diversify our service offering in LNG.”