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.
