Engro Corp. has announced the closing of the deal signed earlier this year with Vopak in relation to the Dutch company’s acquisition of a 29% share in Elengy Terminal Pakistan Ltd (ETPL).
Engro Corp. has sold 24% and IFC has sold 5% shares in ETPL to Vopak LNG Holding B.V., leaving Vopak with a 29% shareholding in ETPL. The total foreign direct investment from this deal is expected to be around US$31.4 million.
This is the culmination of over a year-long due diligence exercise by Vopak that delved into the operational, financial and regulatory aspects of this transaction. It also takes Foreign Direct Investment generated by Engro to US$550 million in total over the last three years. This inflow of dollars places Engro among the top 15 exporters of Pakistan in terms of foreign exchange receipts on an annualised basis during this period.
ETPL’s wholly owned subsidiary, Engro Elengy Terminal (Pvt.) Ltd (EETPL) owns an LNG facility which is located in Port Qasim, 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 is the first LNG import facility in Pakistan. It has regasified 590 billion ft3 of gas since inception and has met all of its contractual commitments and obligations to date.
The facility consists of an LNG jetty including a 7.5 km high pressure gas pipeline. This pipeline is connected to the grid of EETPL’s sole customer Sui Southern Gas Company Ltd (SSGC), a Pakistan government owned entity. EETPL holds a 15-year floating storage and regasification unit (FSRU) time charter.
The 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. The regasification takes place on board the FSRU and the gas is transferred to the mainland where, under high pressure, it enters SSGC’s grid.
Vopak and IFC have separately agreed that the remainder of IFC’s shares will be acquired by Vopak pending certain regulatory consents and approvals. After completion of this transaction, the shareholders in ETPL will be Engro Corporation (56%) and Royal Vopak (44%).
Read the article online at: https://www.tanksterminals.com/terminals/20122018/engro-closes-deal-with-royal-vopak-for-shareholding-in-elengy-terminal/