Engro Corporation closes financing for LNG facility at Port Qasim in Pakistan

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Engro Corporation closes financing for LNG facility at Port Qasim in Pakistan

Global law firm White & Case LLP has advised International Finance Corporation (IFC), Asian Development Bank (ADB) and a syndicate of local banks on the project financing of a 4.5 MTPA LNG facility at Port Qasim, near Karachi, Pakistan.

The Asian Development Bank (ADB) has approved a $30 million project loan, the 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.

The project will be operated by Engro Elengy Terminal (Private) Limited (EETPL), an indirect subsidiary of Engro Corporation, which has signed a 15-year LNG Service Agreement with Sui Southern Gas Company (SSGC).

The receiving, re-gasification and storage facility will be the first LNG import terminal in Pakistan and will enable the country to import LNG and help meet the growing demand for natural gas.

UAE-based White & Case partner Matthew Wood said: 

"Heavy industrial extraction, and an increased demand, has placed severe strain on Pakistan's natural gas resources and the country has experienced power shortages resulting in unscheduled shutdowns in recent years. This strategic project will provide greater energy security and diversification for the country. The importance of this facility makes it one of the critical financings to complete in Pakistan this year and it achieved financial close through the determination of IFC and ADB."

The project involves use of a Floating Storage and Regasification Unit (FSRU) which will store the imported LNG and regasify it before transporting the gas via a pipeline to the existing SSGC gas network near Port Qasim, Karachi.

The White & Case team was led by UAE-based partner Matthew Wood and supported by associates Anne-Marie Wicks, Laleh Shahabi, Dann Irving and Judith Olloh, based in Abu Dhabi, and Saghar Khodabakhsh, based in London.

List of country news

Country news

  • October 15, 2015

    Pakistan launches tender process to develop 660MW Jamshoro power plant

    The Government of Pakistan has launched a tender process to the 660 MW gross Jamshoro Coal Power Plant Project. Read more
  • June 17, 2014

    World Bank approves $1bn loan for 2.2-GW hydropower project in Pakistan

    The World Bank announced that it has given the green light to a US$1 billion financing package for the development of the Dasu Hydropower Stage-I Project (DHP-I) in Pakistan. Read more
  • August 04, 2014

    Pakistan launches tender for 6,600 MW power project

    The Government of Pakistan has launched a tender process by issuing a request for expressions of interest (RFEOI) to develop 6,600 MW of power projects at Pakistan Power Park at Gadani Balochistan. Read more
  • September 15, 2014

    Pakistan and China agree on 1,100 MW hydropower BOOT project

    State-run companies of Pakistan and China have agreed tariff for the 1,100 MW Kohala Hydropower project in Azad Kashmir, Pakistan. Read more
  • September 29, 2014

    IFC considers financing Hulpur hydropower project

    The International Financing Corporation (IFC) is considering financing the 102 MW Hulpur hydropower project in Pakistan. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.