Dutch firm to invest $1.5b in LNG terminal

Will also inject $950m into polypropylene plant, coastal refinery

ISLAMABAD: Royal Vopak is going to invest $1.5 billion in a land-based liquefied natural gas (LNG) terminal facility in Pakistan.

This was stated by the head of a delegation of Royal Vopak, which called on Adviser to Prime Minister on Commerce Abdul Razak Dawood to discuss new opportunities for investment related to the LNG terminal and storage facilities in Pakistan.

Royal Vopak NV is a Dutch company that stores and handles various oil, chemical, edible oil and natural gas-related products all over the world.

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The delegation head said the proposed LNG terminal would provide a cost-effective facility to consumers in the country by introducing state-of-the-art modern technology. “The facility will create new employment opportunities besides technological know-how in the engineering sector of Pakistan,” he said.

Moreover, the Dutch company aims to invest $150 million in the construction of a polypropylene plant and $800 million in a Parco coastal refinery, which will provide a storage facility.

The delegation head urged the commerce adviser to permit more investment in Pakistan in order to establish long-term economic ties between Pakistan and the Netherlands.

He also stressed the need for exploring areas of mutual interest for investment in projects related to the chemical industry. The adviser urged the delegation and Dutch companies to invest in Pakistan due to its improved global ranking in the Ease of Doing Business index, which went up 11 points.

He reiterated that Pakistan had launched a programme titled “Regulatory Guillotine” to ease business regulations in order to facilitate investors.

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“Pakistan has taken various effective steps to improve investment procedures by establishing a better investment facilitation regime at the Board of Investment (BOI),” said Dawood.

Moreover, the adviser highlighted the enormous investment opportunities in various sectors of the economy including the chemical industry.

“Special Economic Zones provide incentives to investors by allowing duty-free import of machinery besides a 10-year tax holiday,” he said and urged the Royal Vopak representatives to invest in these zones to get better returns on their investments.

Published in The Express Tribune, August 28^th, 2019.

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