THE US$ 33M LNG ENGRO TERMINAL PROJECT TO BE OPERATIVE IN 2009

KANWAL SALEEM
Feb 11 - 17, 2008

LAHORE: The Engro's US dollars 33 million LNG Terminal project is expected to be completed in early 2009.

The Engro Vopak Terminal Limited (EVTL) already owns and operates a modern liquid chemicals and LPG terminal at the Port Qasim, a source told PAGE. In order to facilitate Pakistan's growing chemical industry with its bulk liquid and gaseous product requirements, EVTL is actively leveraging its strengths in the pursuit of LNG terminal under patronisation of the Federal Government, the sources added.

It may be mentioned that Engro Energy (Pvt) Limited was formed in February 2006 to pursue business in energy sector and identified a power project based on low BTU, high H2S gas from Qadirpur gas field.

According to sources, a 223 MW power project, which is estimated to cost US $228 million, is also expected to complete by the fourth quarter of 2009. The project is unique as it would convert low BTU high sulphur content permeate gas, which is currently being wasted and flared, into much needed electric power by the country.

The sources further said that Engro has diversified its operations and invested in joint ventures/ subsidiaries engaged in chemical terminal and storage, PVC resin manufacturing and marketing, control and automation businesses, food and energy sector. After fertilizer manufacturing, Engro's one of major initiatives was Engro Foods Limited, a state- of- the- art dairy processing factory, in Sukkur, they added.

The sources further said the company has initiated a major expansion in milk collection and dairy processing capacity with a new plant in Sahiwal that commenced production in December 2007. The Engro Company also contributed a lot in urea fertiliser in Pakistan.

It may be mentioned that due to the shortfall of urea fertiliser in the country, the Government had to import 650,000 tons of urea and heavily subsidise it by spending Rs 8 billion in 2006 and is again facing similar situation this year. To address this constant drain of national exchequer, the Economic Coordination Committee allocated 100 mscfd gas to ECPL from Qadirpur gas field to expand our current urea fertiliser plant at Daharki, District Ghotki, Sindh.

According to sources, the urea plant would be set up at an estimated cost of dollars one billion with a production capacity of 1.3 million tons per annum and its completion is expected in second quarter of 2010. Engro Polymer and Chemical Limited, a joint venture company with Mitsubishi to develop a Polyvinyl Chloride (PVC) resin at Port Qasim, Karachi, is also undergoing expansion and backward integration at a cost of dollars 220 million.

The sources said that Engro Innovative Automation Limited is a market leader in industrial automation business and also offers power and energy management software.