Singapore — Dutch petroleum storage company Royal Vopak Tuesday said it has raised its stake in Elengy Terminal Pakistan Ltd to 44% from its previous shareholding of 29%, giving it a larger foothold in Pakistan's growing LNG market.
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Vopak, one of the world's largest petroleum storage providers, has been diversifying into the LNG space. It had acquired a 29% share in Elengy Terminal Pakistan Ltd in July this year.
The storage company will acquire a total ownership of 44% in ETPL in separate transactions with International Finance Corp and Pakistan Stock Exchange-listed Engro Corp, it said in a statement. It did not state the value of the transaction.
The deal is subject to conditions including regulatory and shareholder approvals, and is expected to close in the first quarter of 2019. Vopak's previous acquisition of a 29% stake is on track for closing in the fourth quarter of 2018 as announced before.
Elengy Terminal Pakistan Ltd's full-owned subsidiary, Engro Elengy Terminal Pvt Ltd owns Pakistan's first LNG import facility located in Port Qasim, adjacent to the Engro Vopak chemical terminal on the mainland side of the channel into Port Qasim, Vopak said.
It said the terminal opened in 2015 and includes an LNG jetty, a pipeline connected to the grid of its customer state-run Sui Southern Gas Co. and a 15-year time charter on a floating storage and regasification unit or FSRU.
After the completion of this deal, Engro Corp and Vopak will be shareholders in the terminal.Pakistan has been increasing the share of gas in its energy mix on the back of rising energy consumption in power supply, industrial activities and usage of gas as feedstock for fertilizers.
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