En­gro in­vests in sus­tain­abil­ity

Enterprise - - Investment -

En­gro Cor­po­ra­tion has in­vested Rs.130 bil­lion over the last five years. En­gro has long been stress­ing on the im­port of LNG to meet the en­ergy needs of Pak­istan. A break­through in chem­i­cal and LPG stor­age, En­gro Vopak Ter­mi­nal Lim­ited, is a joint ven­ture of Royal Vopak of the Nether­lands and En­gro Cor­po­ra­tion. It has been pro­vid­ing world class ser­vices to the grow­ing chem­i­cal and petro­chem­i­cal in­dus­try of Pak­istan. The com­pany of­fers stor­age and han­dling so­lu­tions for liq­uid and gaseous chem­i­cals, oil prod­ucts, petro­chem­i­cals, bio-fu­els, veg­etable oils and liq­ue­fied nat­u­ral gas (LNG).

En­gro Vopak owns and op­er­ates the only ship­ping ter­mi­nal and stor­age fa­cil­ity in Pak­istan for liq­uid chem­i­cals and liq­ue­fied pe­tro­leum gas (LPG). In 2009, the com­pany com­mis­sioned the first cryo­genic im­port fa­cil­ity in Pak­istan for ethy­lene. How­ever, En­gro re­cently in­vited ex­pres­sions of in­ter­est from pri­vate sec­tor firms to build an LNG float­ing stor­age and re-gasi­fi­ca­tion ves­sel.

Liq­ue­fied nat­u­ral gas is just what the name sug­gests: nat­u­ral gas that is liq­ue­fied through a com­bi­na­tion of high pres­sure and cool­ing. It is pos­si­ble to ac­com­mo­date 600 times more LNG in a given cu­bic space as reg­u­lar nat­u­ral gas, mak­ing it pos­si­ble to fea­si­bly trans­port large vol­umes of gas on ships from coun­tries with hy­dro­car­bon sur­pluses such as Qatar, Iran and Rus­sia to coun­tries with se­vere short­ages, such as Pak­istan and In­dia.

Once at an im­port ter­mi­nal, the LNG is then con­verted back to gas form (es­sen­tially by al­low­ing it to come back to room tem­per­a­ture and nor­mal pres­sure) and then pumped into a gas pipe­line sys­tem.

Both gov­ern­ment and pri­vate sec­tor or­gan­i­sa­tions be­lieve that LNG is the only way Pak­istan can keep its en­ergy costs low, rather than hav­ing to rely on ex­pen­sive oil im­ports for power gen­er­a­tion. Pak­istan is also aided by ge­og­ra­phy: the main ports in the coun­try are less than three days sail­ing time from two of the three largest gas pro­duc­ing coun­tries in the world, i.e. Iran and Qatar.

En­gro Vopak’s ex­per­tise in chem­i­cal trans­porta­tion and stor­age is ex­pected to be an ad­van­tage in its ef­forts to set up LNG im­port fa­cil­i­ties.

En­gro Fer­tiliser Urea Plant

En­gro’s new fer­tiliser plant was es­tab­lished in the be­gin­ning of 2011 at Da­haraki, Sindh. The plant, with a ca­pac­ity to pro­duce 1.3 mil­lion tons of urea, aims at cre­at­ing lo­cal self- suf­fi­ciency in urea pro­duc­tion.

Cur­rently En­gro Fer­tilis­ers Lim­ited, a wholly-owned sub­sidiary of En­gro Cor­po­ra­tion, holds about 25 per­cent of the di-am­mo­nium phos­phate (DAP) mar­ket and 16 per­cent of the urea mar­ket. The new plant will help pro­pel En­gro’s share to about 31 per­cent of the urea mar­ket. Ac­cord­ing to En­gro of­fi­cials, con­se­quently there will be no need to im­port urea, un­less there is a con­tin­u­a­tion of gas cur­tail­ment.

Nat­u­ral gas is used not only for power gen­er­a­tion in fer­tiliser plants but also as a key in­gre­di­ent in the man­u­fac­tur­ing of urea. To reg­u­late the sup­ply of nat­u­ral gas En­gro Fer­tiliser has signed a con­tract with the gov­ern­ment, as a re­sult of which Sui North­ern Gas Pipe­lines Lim­ited (SNGPL) will sup­ply 100 mil­lion cu­bic feet per day (mm­cfd) of gas to the plant from the Qadirpur gas field. In the event of a short­fall, SNGPL will pro­vide gas from else­where within its net­work.

En­gro has also set up an ex­pan­sion plant in re­sponse to open gov­ern­ment bid­ding be­tween lo­cal and in­ter­na­tional com­peti­tors. En­gro in­vested $1.1 bil­lion in es­tab­lish­ing the plant. It is one of the big­gest in­dus­trial in­vest­ments by a Pak­istani com­pany, which was raised through in­vest­ments from In­ter­na­tional Fi­nance Cor­po­ra­tion (IFC), lo­cal banks and in­ter­na­tional in­sti­tu­tions.

En­gro is not in favour of im­port­ing urea and stresses on a reg­u­lar gas sup­ply to the top fer­tiliser plants. By avoid­ing urea im­ports, the coun­try would save up to $350 mil­lion an­nu­ally. En­gro re­gards smooth gas sup­ply as cru­cial for its ac­tive projects and for at­tract­ing for­eign in­vest­ment

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