Engro, Vopak Close Pakistan Terminal Deal
Pakistan’s Engro Corporation announced December 13 the closing of the deal signed earlier this year for Vopak to acquire a 29% stake in Elengy Terminal Pakistan (ETPL).
The Engro Corporation sold a 24% stake in ETPL, and the International Finance Corporation (IFC) 5%, to Vopak LNG Holding, leaving the latter with a 29% stake. The deal is expected to be valued at around $31.4mn, Engro said.
ETPL wholly owns Engro Elengy Terminal (EETPL), the owner of Pakistan's first LNG import facility, which has operated since 2015 at Port Qasim. It has regasified 590bn ft3 of gas since inception and has met all its contractual commitments and obligations to date, Engro said.
The facility has an LNG jetty, including a 7.5 km high-pressure gas pipeline. This pipeline is connected to the grid of EETPL’s sole customer, the Sui Southern Gas Company (SSGC), a Pakistani government-owned entity. EETPL holds a 15-year floating storage and regasification unit (FSRU) time charter.
Last month, Vopak said it will buy an additional stake in the terminal. The acquisition is subject to certain conditions and closing is anticipated to take place in 1Q 2019. Vopak and IFC have agreed separately that the remainder of IFC’s shares are to be acquired by Vopak, pending certain regulatory consents and approvals. Following completion of that potential transaction, the shareholders in ETPL will be Engro Corporation (56%) and Vopak (44%).