ADB to Provide $30 mn Loan for Pakistan LNG Project

The Asian Development Bank is set to approve $30 million loan for the construction of Engro LNG regasification project at Karachi’s Port Qasim.

The terminal is aimed at facilitating imports of up to 400 million cubic feet of gas per day (mmcfd).

The Express Tribune newspaper reported Saturday that International Finance Corporation (IFC) of the World Bank is also expected to give about $30 million loan for the construction of the terminal.

The loan will help Engro Elengy Terminal (ETPL), a fully owned subsidiary of Engro Corporation, to significantly meet the total financing requirements of the project, the newspaper said.

Out of the total cost, estimated over $100 million, ETPL will add $31 million as its equity.

Both IFC and ADB are expected to convert parts of their project financing into equity that will allow their representatives to sit on the board of the company, The Express Tribune added.

The terminal was originally planned to be completed in November this year but is now delayed and will be completed in March, due to requisite approvals from Pakistani government agencies.