Vopak in Talks to Buy Stake in Pakistan LNG Infrastructure
Netherlands-based Vopak is looking to strengthen its foothold in Pakistan and has initiated talks with Pakistan’s Engro Corporation to buy latter's stake in latter’s LNG infrastructure in Karachi, Engro’s company secretary Faiz Chapra said in a notification to the Pakistan Stock Exchange June 29.
Confirming this development, an official from Vopak told NGW via e-mail July 5 that Vopak’s statement during last month's World Gas Conference “might be of use.”
Vopak said during the WGC that: “Pakistan is one of the fastest growing LNG markets in the world. Vopak has the intention to intensify its successful cooperation in Pakistan with Engro in the short term by acquiring a minority share in their LNG infrastructure in Port Qasim. The LNG-infrastructure is operated and maintained by our long-standing partner Engro with whom Vopak operates the adjacent Engro/Vopak chemicals storage terminal for over 20 years. The LNG infrastructure, including the jetty, pipeline towards the customer and a long-term FSRU charter agreement, is operational since 2015.”
The FSRU in question Exquisite has received 10.4mn metric tons of LNG since it started operations in 2015, of which 7.8mn mt came from Qatar. It has storage capacity of 150,900 m3, a peak regas rate of 745mn ft3/d (7.7bn m3/yr), and was Pakistan’s first LNG import facility. On June 12, Qatari state LNG shipowner Nakilat said it is to acquire a 55% interest in Exquisite from its owner Excelerate.
Vopak further stated at the WGC that gas will play an increasingly important role in the global energy mix. “Based on the shale gas developments in the US, the global growth in liquefaction (LNG) and the diversification of energy and feedstock in the Middle East, we expect that gas, including LNG and LPG, will become a more globally traded vital product. In order to optimise supply chains, additional infrastructure will be required that facilitates the growing trade in these products,” it said.