Asian Development Bank to Fund Pakistan's First LNG Regasification Terminal

The Asian Development Bank (ADB) on Friday announced it will fund Pakistan’s first LNG regasification terminal.

The Manila based institution approved a $30 million project loan to Engro Elengy Terminal Private Limited, a special purpose company which will build the regasification terminal.

The loan, to the special purpose unit of listed Pakistani company, Engro Corporation Ltd, will be used to build and operate the regasification facility at Port Qasim, Karachi. The plant will have the capacity for regasification of up to 3 million tons of LNG per annum from March 2015 onwards. The fuel will be supplied to the state-owned Sui Southern Gas Company’s gas distribution network via a new high pressure pipeline.

Along with ADB’s loan, International Finance Corporation is expected to provide $20 million and local banks another $50 million. The rest of the project financing will come from equity proceeds of $33.3 million, for a total cost of $133.3 million, including contingencies.

Pakistan has been reeling under crippling power shortages, caused by a lack of fuel, which has resulted in unscheduled industry shutdowns, power interruptions in cities, and public unrest.