Islamabad, Pakistan, September 1, 2015—IFC,
a member of the World Bank Group, is making an equity investment as well
as providing a loan of up to $20 million to Engro Elengy Terminal Private
Limited (EETPL) for Pakistan’s first Liquefied Natural Gas (LNG) import
terminal, to help address the country’s severe energy crisis and spur
economic growth.
IFC’s investment will go towards the
design, construction and operation of the $125 million Elengy terminal
at Port Qasim, near Karachi. The terminal utilizes a Floating Storage and
Regasification Unit (FSRU) provided by U.S.-based Excelerate Energy, and
is expected to handle up to 4.5 million tons of LNG every year, which will
help ease the country’s crippling power shortages and reduce its reliance
on expensive diesel and heavy fuel oil imports.
Khalid Subhani, CEO of Engro Corp said:
“Importing natural gas is a more economically viable source for power
generation, especially when Pakistan’s indigenous gas resources are diminishing.
The new facility will also help diversify Pakistan’s fuel supply mix and
open one of the largest gas markets in Asia to the global LNG market.”
Power outages are estimated to cost
the equivalent of 7 percent of Pakistan’s GDP annually, with blackouts
and brownouts lasting up to eight hours in cities and even longer in the
countryside. According to the latest Enterprise Survey conducted in Pakistan,
the absence of a reliable electricity supply was cited by two-thirds of
business owners and managers as the top constraint facing firms in the
country.
The project is part of World Bank Group
and IFC strategy to mobilize up to $10 billion in investments to address
Pakistan’s power shortage.
“Our aim is to help Pakistan’s private
sector develop infrastructure that will ensure an affordable, reliable
and sustainable energy supply,” said Mouayed Makhlouf, IFC Regional Director
for the Middle East and North Africa. “This investment will develop a
critical asset to help address the country’s severe gas supply deficit,
cut fuel costs and mitigate climate change. We hope it will also encourage
the development of additional LNG supply infrastructure in Pakistan and
other developing countries.”
Pakistan represents IFC’s second largest
country exposure in the Middle East and North Africa. To date, IFC has
committed over $5.2 billion in the country. During the next few years,
IFC is expected to invest about $500 million annually in Pakistan, with
a focus on infrastructure, particularly renewable and low-cost power, financial
markets, agribusiness, manufacturing, and services.
About IFC
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org
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