Engro Elengy Terminal (Pvt) Limited is a Private Company (EETL), wholly owned by Elengy Terminal Pakistan Limited, which is a subsidiary of the Corporate conglomerate Engro Corporation Limited and Vopak LNG Holding B.V.

Pakistan’s domestic gas production has been unable to meet the country’s demand. In order to overcome this shortage, the Government of Pakistan (GoP) started importing Liquefied Natural Gas (LNG) since early 2015. Developments in LNG Industry boomed after the establishment of first LNG Regasification terminal by Engro Elengy Terminal (Private) Limited.

The terminal has been established as a special purpose vehicle to own and operate the LNG facilities and enter into all project related agreements including the LSA. It has leased a 630mmscfd baseload Floating Storage and Re-gasification Unit (FSRU) from Excelerate Energy with a peak regassification capacity of 690mmscfd.

Elengy Terminal Pakistan Limited holds 100% of the shares of Engro Elengy Terminal (Pvt) Ltd. Few years back, Vopak LNG Holding B.V. extended its shareholding in Elengy Terminal Pakistan Limited. Consequently, Engro Corp and Vopak LNG Holding B.V. now own 56% and 44% respectively

Dawood Hercules Corporation - along with Dawood Family and its associated concerns holds a major stake in Engro Corporation Limited through corporate and individuals. The Corporation has a distinguished name in Pakistan with diversified business interests. Therefore, the stability factor is considered strong.

The Sponsor Acumen for EETL is extensive due to its association with Engro Corporation Limited.

Engro Corporation Limited (ECL) has expanded its footing in diversified business avenues with a sizable portfolio of strategic investments. The group’s business portfolio spans various sectors including fertilizers, PVC resin, food, energy, and chemical terminal and storage businesses.

The board of directors (BoD) comprises three members including the CEO. Two members represent Engro Group while Mr. Christopher Robert Robblee represents Royal Vopak.

Mr. Ahsan Zafar serves as the chairman of the Company. He is also the CEO of Engro Energy Limited – one of the leading energy companies in Pakistan and a subsidiary of Engro Corporation. As the CEO he looks after various entities which include Engro Powergen Qadirpur Limited; Engro Powergen Thar Limited; Sindh Engro Coal Mining Company; Engro Energy Services Limited and Siddiqsons Energy Limited. Chris Robblee is President of Asia & Middle Division, Vopak, effective February 2022. Mr Robblee is also a member of the Strategic Committee of Royal Vopak. Based in Singapore, Mr. Robblee brings with him over 12 years of experience in the tank storage business with Vopak. In his current role, he heads the Asia and Middle East region including countries Australia, India, Indonesia, Malaysia, Pakistan, Thailand, Singapore, United Arab Emirates and Saudi Arabia.

The number of board meetings held during CY24 was five; wherein attendance by the board members is considered strong. Board Committees are also in place to assist the board in relevant matters.

M/S A.F.Ferguson & Co. Chartered Accountants is the external auditor of the company. They expressed an unqualified opinion on the company's annual financial statements for the year ended December 31, 2024.

Engro Elengy Terminal has a lean organizational structure. The overall operational responsibilities have been divided among four main departments: a) Commercial & Business Development, b) Terminal Management Team, c) Finance and d) HR & Admin. All functions, with the exception of Finance, are consolidated and shared with Engro Vopak Terminal Limited.

Mr. Syed Ammar Shah joined Engro Elengy Terminal as CEO. He is leading strategic initiatives across various sectors at Engro for over 16 years. Mr. Ammar has played a key role in establishing Pakistan’s first LNG terminal and managed 60% of the country’s chemicals, LPG, and LNG throughput as COO of Engro Elengy and Vopak Terminals. He is supported by a team of qualified individuals, primarily comprising technical staff.

A management committee comprising four members and chaired by the CEO; is in place to oversee the terminal operations. Other committee members include the CEO, CFO, COO, and HR&Admin Manager.

Daily MIS/Summary Report encompassing terminal operations concerning i) number of MMBTUs re-gasified and pumped into SSGC’s network ii) pressure of gas and iii) required amount of gas by SSGC on a daily basis is used to monitor the terminal performance.

EETL's quality of the I.T. infrastructure and the breadth and depth of activities performed has remained well satisfactory.

Production of natural gas from indigenous resources is decreasing in Pakistan. Thus, to bridge the supply demand gap, Pakistan’s reliance on imported Re-gasified Liquified Natural Gas (RLNG) has been increasing in recent years. With depleting gas reserves and rising demand, the share of imported gas is expected to go up, in the absence of any major reserve discovery. At present, the capacity of two Floating Storage Regasification Units (FSRU) for RLNG is more than 1,200MMSCFD.

This was the first Company in Pakistan to commission an LNG terminal in Mar, 2015. One of the most cost-efficient LNG terminals in the region, it has the capacity for regasification of up to a peak of 690 mmscfd (guaranteed capacity: 630 mmscfd & uncontracted capacity: 0 mmscfd) or 4.5 million tons of LNG per year and terminal capacity utilization ranges between 590 to 630 mmscfd based on customer’s demand. With 50% of Pakistan's LNG import and regassification capacity, relative position of EETL remains strong.

During 9MCY24, revenue witnessed a similar trend standing at PKR 15bln (9MCY23: PKR 16bln) 

During 9MCY24, gross margins were reported at 37% , an increased when compared to the previous years trends (9MCY23: 34.5%) . Similarly, operating margins also almost remained on similar levels (Operating; 9MCY24: 32.7%; 9MCY23: 31.5%). However, net margins increased due to better other income generated through short term investments and bank deposits and stood at 24.3% (9MCY23: 15.9%).

Depleting indigenous gas reserves and a transition towards cleaner and cheaper power generation have been the major factors driving the country towards adding LNG to its energy mix. Over the past few years, the government has established the basic LNG infrastructure, which has helped bridge the gas supply-demand shortfall, and lately, there has been some progress toward private sector participation in LNG import. In light of the increasing need for LNG in the Country EETL also has expansion plans and those will materialize after the necessary pending approval /arrangements from the relevant stakeholders have been finalized.

The working capital cycle of the company is largely a function of receivables from SSGC and payment to suppliers; any delays in payment from SSGC may impede the company’s working capital. As at end-Sep-24, net cash cycle stood at 2 days (Sep-23: 19days). The Company doesn't rely on short term borrowings and manages its working capital through internal cash generation.

During Sep-24 interest coverage increased to 50.0x (end-Sep 23: 6.6x) due to considerable decrease in finance income on lease liability and exchange gain on borrowings. Debt servicing ability, however, remains strong, due to i) sustainable margins ii) sizable stream of cash flows and iii) association with sponsors of robust financial strength. Going forward, repayment of principal portion of the loans is expected to remain comfortable, given fixed capacity payments from SSGC.

For the year ended-Sep24, leveraging stood at ~81% on account of elevated lease liabilities. The borrowings comprise solely of long-term funding. During 2021 , the company entered into a new financing arrangement with ABL and prepaid lenders of the company under CTA through single payment.