PACRA Maintains Entity Ratings of Engro Elengy Terminal (Private) Limited

The ratings reflect strong business profile of Engro Elengy Terminal (Private) Limited (EETPL or the Company), being the pioneer in the industry. Further, GOP's commitment to managing energy needs of the country by way of imported LNG adds to its strength. Another significant factor is the financial strength and experience in the energy chain of the sponsoring companies – Engro Corporation Limited and Vopak LNG Holding B.V. Installed FSRU has guaranteed capacity of 630mmscfd (peak regassification capacity: 690mmscfd). Thus, a sizable and recurring stream of income is ensured which resulted in the company posting a top line of PKR 5.2bln in 3MCY24 (CY23: PKR 21.3bln). Engro Elengy maintained its availability at 97% for CY23 (Guaranteed Availability: 95%) - an outcome of technically sound operations. The maintenance operator, Excelerate Energy (EE), is a key source of comfort in managing the plant operations. The EETPL low business risk profile encompasses long-term energy supply contract inked with SSGC ensuring guaranteed off-take, which translates to stable revenues and cash flows stream, subject to adherence to agreed parameters. SSGC, the sole customer, has demonstrated timely payments against committed purchases despite challenges. The company’s repayment capacity in terms of debt service remains at a comfortable level. Implementation of IFRS-16, which requires company to book all leased assets and their corresponding lease liabilities, increased company’s leveraging but did not have any significant impact on company’s net financial position. Timely project debt repayment and internal cash generation strengthens the financial risk profile of EETPL.
The ratings remain dependent on smooth operations of the terminal, and conduct of sole buyer with reference to timely payments to Engro Elengy Terminal.

About the Entity
Engro Elengy Terminal (Private) Limited (EETPL) is a Private Limited Company, incorporated in Pakistan on January 9, 2014, specifically for the purpose of establishing and operating an LNG Terminal for the receipt, storage and re-gasification of LNG. EETPL commenced its operations on March 29, 2015, as the first-ever LNG Terminal Operator in Pakistan. The LNG Terminal of the Company is located in South Western Zone, Berth no.13, Port Qasim, Karachi. The company has leased a 630mmscfd baseload Floating Storage and Re-gasification Unit (FSRU) from Excelerate Energy (EE), who is also the operation and maintenance operator of the company. Elengy Terminal Pakistan Limited holds 100% of the shares of Engro Elengy Terminal (Pvt) Ltd while Engro Corp and Vopak LNG Holding B.V. own 56% and 44% respectively in Elengy Terminal Pakistan Limited. Vopak LNG Holding B.V. is an international player with sizable footprint in terminal businesses worldwide. The board of directors (BoD) of Engro Elengy Terminal comprises three members including the CEO. Two members represent Engro Group while Mr. Christopher Robert Robblee represents Vopak LNG Holding B.V. Mr. Mazhar Hasnani joined Engro Elengy Terminal as CEO in Feb, 2024 in place of Mr. Ismail Mehmood. Mr. Mazhar brings with him over two decades of international and local experience, including 14 years at Engro. Most recently, he spent over three years as the CFO and SVP Performance Management at Engro Corporation.