ISLAMABAD:
Engro Vopak Terminal Restricted (EVTL) has pressed the federal government to increase the lease of land for a liquefied petroleum fuel (LPG) and liquid chemical terminal at Port Qasim to allow it to proceed operations.
The federal government had allotted a bit of land to EVTL at Port Qasim in 1995 and its lease goes to run out in 2026. Now, EVTL is urging the federal government to increase the lease. Nevertheless, the Ministry of Maritime Affairs has refused to increase the lease and plans to drift a young for a recent lease.
EVTL claims it has spent $100 million and intends to proceed investing within the mission if the federal government extends the lease settlement.
Curiously, the extension in lease just isn’t a part of the settlement; subsequently the maritime affairs ministry is reluctant to endorse it.
Sources mentioned that the Port Qasim Authority (PQA) couldn’t prolong the lease of land and it must float a young underneath the Public Procurement Regulatory Authority (PPRA) guidelines.
In addition to the LPG and liquid chemical terminal, a liquefied pure fuel (LNG) pipeline additionally passes by way of this land that connects an LNG terminal owned by Engro with Sui Southern Fuel Firm’s community.
Sources mentioned that the matter was taken up in a latest assembly of the Particular Funding Facilitation Council (SIFC). The SIFC had set a deadline for the Petroleum Division to finish negotiations with EVTL.
The PQA knowledgeable the federal government concerning the initiation of one other spherical of negotiations with EVTL by signing the second Supplemental Implementation Settlement on January 15, 2025.
It emphasised {that a} third-party enterprise valuation of the terminal was mandatory, which required extra time. The PQA was of the view that the deadline of January 31, 2025 couldn’t be met because of the in depth due diligence required within the course of.
It requested an extension within the deadline to help within the impartial valuation of belongings. The federal government granted extension of one other 30 days (till March 2) for finalising ongoing negotiations with EVTL by way of signing the third Supplemental Settlement. It determined that the Finance Division would facilitate the PQA by offering providers for the impartial analysis of belongings.
The EVTL terminal for bulk liquid chemical compounds and LPG is a part of Vopak’s world community of 78 terminals throughout 23 international locations with complete capability of 36.2 million cubic metres. A three way partnership between Royal Vopak (the Netherlands) and Engro Company, it has supplied storage and terminal providers since 1997. Engro Vopak handles over 50% of Pakistan’s LPG marine imports and helps main chemical industries by delivering key merchandise like phosphoric acid, paraxylene and ethylene. Its LPG storage capability had been expanded to six,700 MT in 2012, with complete storage now at 82,400 cubic metres.
