IFC to Invest $20 mn in Pakistan's LNG Terminal

IFC, a member of the World Bank Group, is making an equity investment as well as providing a loan of up to $20 million to Engro Elengy Terminal Private Limited (EETPL) for Pakistan’s first LNG import terminal.

The investment will go towards the design, construction and operation of the $125 million Elengy terminal at Port Qasim, near Karachi, IFC said Tuesday.

The terminal utilizes a Floating Storage and Regasification Unit (FSRU) provided by Excelerate Energy, and is expected to handle up to 4.5 million tons of LNG every year, which will help ease the country’s crippling power shortages and reduce its reliance on expensive diesel and heavy fuel oil imports. 

The project is part of World Bank Group and IFC strategy to mobilize up to $10 billion in investments to address Pakistan’s power shortage. 

“Our aim is to help Pakistan’s private sector develop infrastructure that will ensure an affordable, reliable and sustainable energy supply,” said Mouayed Makhlouf, IFC Regional Director for the Middle East and North Africa. “This investment will develop a critical asset to help address the country’s severe gas supply deficit, cut fuel costs and mitigate climate change. We hope it will also encourage the development of additional LNG supply infrastructure in Pakistan and other developing countries.”