Pakistan : Engro Fast-Track Liquefied Natural Gas Regasification Project

Nonsovereign Project | 48307-001

The project involves construction and operation of a fast track LNG regasification facility located at Port Qasim, Karachi. Project components include construction of a jetty and associated facilities, a 24-km high pressure gas pipeline, and lease of a Floating Storage and Regasification Unit (FSRU); the project location is alongside the existing Engro-Vopak LPG terminal.

Project Details

  • Project Officer
    Mokroussov, Sergey
    Private Sector Operations Department
    Request for information
  • Country/Economy
    Pakistan
  • Modality
  • Sector
    • Energy
Project Name Engro Fast-Track Liquefied Natural Gas Regasification Project
Project Number 48307-001
Borrower / Company ENGRO ELENGY TERMINAL PRIVATE LIMITED
Country / Economy Pakistan
Location
Type or Modality of Assistance
3247 Loan Ordinary capital resources USD 30.00 million Closed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy / Conventional energy generation
Gender No gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Mokroussov, Sergey
Project Sponsor(s) ENGRO CORPORATION
Description The project involves construction and operation of a fast track LNG regasification facility located at Port Qasim, Karachi. Project components include construction of a jetty and associated facilities, a 24-km high pressure gas pipeline, and lease of a Floating Storage and Regasification Unit (FSRU); the project location is alongside the existing Engro-Vopak LPG terminal.
Objectives and Scope The project will play a part in satisfying the growing domestic demand for hydrocarbons, and hence will help reduce the unmet energy demand in Pakistan. It's anticipated that the project will contribute to national energy security priorities and strengthening of the country's natural gas infrastructure. Therefore the project will further enhance the country's energy security by diversifying the energy base in an environmentally sustainable manner through import of a cleaner fuel.
Status of Operation/Construction Operational since 29 March 2015
Linkage to Country/Regional Strategy The project is consistent with ADB's Strategy 2020 in relation to environmentally sustainable growth, investment in infrastructure, and private sector development. The project is aligned with Pakistan's Country Operations Business Plan (2014-16) specifically with regard to emphasis on expansion of energy access, environmental sustainability and catalyzing private sector investment. The project is fully consistent with the ADB Energy Policy (2009), under which support for energy sector investment for inclusive growth has been identified as a key priority.
Safeguard Categories
Environment A
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Project was classified as environment category A in accordance with ADB's Safeguard Policy Statement (2009). An Environmental Impact Assessment (EIA) Report was prepared to meet ADB requirements and a "No Objection Certificate" was issued by Sindh Environmental Protection Agency. Necessary permits. Licenses, and certificates have been acquired such as (i) Integrated Management (IMS) certification, (ii) International Ship and Port Facility Security (ISPS) certification, and (iii) Green Office Certification issued by WWF Pakistan. EETPL has engaged an independent monitoring consultant to conduct monthly sampling and testing of ambient air, stack emission, noise level, and wastewater quality and results indicated compliance with national legislated environmental standards. In partnership with International Union for Conservation of Nature, EETPL has implemented the Engro Elengy Mangroves Restoration Project to plant mangroves on 500 hectares in the designated area within Port Qasim. EETPL is compliant with applicable local, national and international laws and regulations on environmental protection, security, health and safety
Involuntary Resettlement The area where project site is located is under lease to the Borrower by the Port Qasim Authority including right-of-way (ROW) for the pipeline route within the port area. The rest of the pipeline followed the existing ROW of unutilized government land following the route of other existing SGCC pipelines. No individual or household was physically or economically impacted by the Project
Indigenous Peoples The Project was categorized as C for Indigenous Peoples. The Port Qasim Authority is located in a designated industrial zone, and its surrounding areas have no records of settlement by any ethnic groups that meet ADB's SPS (2009) criteria and could be considered as indigenous
Stakeholder Communication, Participation, and Consultation

Several consultations were conducted during preparation of the EIA and engagement with the local communities and other stakeholders is continuously undertaken during project operation. A grievance redress mechanism is in place, and EETPL has supported several community projects through its corporate social responsibility (CSR) activities
Timetable for assistance design, processing and implementation
Concept Clearance 21 Jul 2014
Credit Committee Meeting 12 Jan 2015
Approval 24 Feb 2015
Last PDS Update 18 Feb 2022

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Engro Fast Track LNG Regasification Project: Environmental Impact Assessment Environmental Impact Assessments Jul 2014
Engro Fast Track LNG Regasification Project: Environment and Social Compliance Audit Report Environment and Social Compliance Audit Reports Jul 2014

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

  • 27 Feb 2015 | News Release

    ADB to Help Fund Pakistan’s First LNG Regasification Terminal

    The Asian Development Bank (ADB) has approved a $30 million project loan to Engro Elengy Terminal Private Limited, a special purpose company which will build Pakistan’s first liquefied natural gas (LNG) regasification terminal.