Vopak Hikes Stake in Pakistan Terminal
Dutch terminals operator, Vopak, said November 27 that it will buy an additional stake in Pakistani conglomerate Engro Corporation’s LNG terminal.
Vopak will now hold a total stake of 44% in Elengy Terminal Pakistan (ETPL) through separate transactions with the International Finance Corporation (IFC) and the Engro Corporation. This includes the acquisition of a 29% stake announced in July this year.
ETPL's wholly-owned subsidiary, Engro Elengy Terminal Private (EETPL) owns an LNG facility located in Port Qasim in Pakistan, adjacent to the Engro Vopak chemical terminal. The facility has been in operation since 2015 and is the first LNG import facility to operate in Pakistan.
EETPL has an FSRU, the Exquisite, on charter from US shipowner Excelerate, and has capacity to regasify 7.1bn m3/yr (690mn ft3/d). It is connected to the grid of its sole customer, the Sui Southern Gas Company, a Pakistan government-owned entity. EETPL holds a 15-year floating storage and regasification unit (FSRU) time charter.
The acquisition is subject to certain conditions and closing is anticipated to take place in 1Q 2019. Closing of the first transaction, as announced in July, is still expected in 4Q 2018, Vopak said.
This will be the third operating LNG import terminal in which Vopak has a stake. It has a 50% interest in the long-established 12bn m3/yr Gate LNG terminal at Rotterdam in the Netherlands, and a 60% stake in the 7.2bn m3/yr Altamira LNG import terminal in Mexico. In addition, it is a partner in the planned 5bn m3/yr 'German LNG' terminal project in Brunsbuttel that, subject to a final decision, may start up in late 2022. Vopak also owns, or part-owns, multiple oil, oil product, chemical tank farms, and terminals around the world.