Engro Corporation's share price dropped 1%, or Rs3.17, and closed at Rs313.86 with 591,900 shares changing hands at the PSX.
PHOTO:EXPRESS
KARACHI: Engro Corporation has initiated talks with a Netherlands-based global liquefied natural gas (LNG) terminal operator to sell a minority stake in its Karachi-based LNG import terminal.
"Engro Corporation Limited has entered into discussions with Vopak LNG Holding BV with respect to Vopak LNG Holding BV (itself or through its associated entity) acquiring a minority stake in Engro's LNG infrastructure in Karachi," Corporation General Counsel and Company Secretary Faiz Chapra said in a notification to the Pakistan Stock Exchange (PSX) on Friday.
The sales would be subject to the parties entering into definitive agreements and obtaining required board, shareholder and regulatory approvals, he added.
Engro to inject a minimum Rs3.03 billion into chemical subsidiary
Engro Corporation's share price dropped 1%, or Rs3.17, and closed at Rs313.86 with 591,900 shares changing hands at the PSX.
Vopak LNG Holding BV operates an LNG terminal at the Port of Rotterdam. It provides terminal access to gas suppliers and off-takers to Europe. Vopak LNG Holding BV operates as a subsidiary of Royal Vopak NV, according to Bloomberg.
Engro Terminal Limited established the country's first RLNG import terminal at Port Qasim, Karachi at an estimated cost of $300 million. The terminal, formally inaugurated in 2017, has an installed capacity to import a maximum 600 million cubic feet in a day.
Engro says it doesn’t enjoy monopoly
The establishment of the terminal enabled the government and the private sector to overcome energy shortage in the country. The availability of the imported Re-gasified Liquefied Natural Gas (RLNG) enabled the government to have established a few mega power production plants on the gas and reduced power outages to some extends.
Besides, it also helped the private sector; fertiliser manufacturers, textile and CNG fuel stations to revive their businesses.
Published in The Express Tribune, June 30th, 2018.
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