SINGAPORE (Reuters) - Global independent tank storage company Vopak said on Tuesday it will increase its stake in liquefied natural gas (LNG) infrastructure in Pakistan, as the South Asian country turns to LNG imports to curb energy shortages.
Vopak said it will acquire a 44 percent stake in total in Elengy Terminal Pakistan Ltd, whose subsidiary owns the South Asian nation’s first liquefied natural gas (LNG) import facility.
The acquisition will involve separate transactions with International Finance Corp (IFC) and Engro Corp and includes a 29 percent stake the company said it would buy in July, Vopak said in a statement.
The purchase is subject to conditions including regulatory and shareholder approvals, and is expected to close in the first quarter of next year, it said.
Elengy Terminal Pakistan’s subsidiary Engro Elengy Terminal owns an LNG facility which is located at Port Qasim in Pakistan, adjacent to the Engro Vopak chemical terminal.
The facility has been in operation since 2015 and is the first LNG import facility in Pakistan.
“Pakistan is a market with more than 200 million people and has a growing energy demand in which the share of gas is expected to increase,” Vopak said.
“Gas is mainly used for power supply for the growing population, industrial usage and as feedstock for fertilizers.”
Once the transaction is completed, Elengy Terminal Pakistan’s shareholders will be Engro and Vopak.
Reporting by Jessica Jaganathan; editing by Richard Pullin