The Pakistan Credit Rating Agency Limited
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Uswa Sikandar

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

Rating Type Entity
(04-Jul-23 )
(04-Jul-22 )
Action Maintain Maintain
Long Term AA- AA-
Short Term A1 A1
Outlook Stable Stable
Rating Watch - -

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 usual capacity of 630mmcfd (peak hours: 680mmcfd). Thus, a sizable and recurring stream of income is ensured which resulted in company posting a top line of PKR 5,390mln in 3MCY23 ( CY22: PKR 16,409mln). . Engro Elengy continues to meet its availability (~95%) - an outcome of technically sound operations and maintenance operator, Excelerate Energy (EE), is a key source of comfort in managing the plant's operations. The EETPL low business risk profile encompassing long-term energy supply contract inked with SSGC ensuring guaranteed off – take translating to stable revenues and cash flows stream, subject to adherence to agreed parameters. SSGC, the sole intermediary, 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 required 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 strengthen the financial risk profile of EETPL which is further supported by the corporate guarantee from sponsor group.
The ratings remain dependent on smooth operations of the terminal, and conduct of sole buyer with reference to the 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 600mmscfd 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. Casper Pieper represents Vopak LNG Holding B.V. Mr. Ismail Mehmud joined Engro Elengy Terminal as CEO on 1st July, 2022 in place of Mr. Yusuf Siddiqui. He has rejoined Engro Group as Chief Executive of Engro Vopak Terminal Ltd and Engro Elengy Terminal Ltd.. Prior to that, he was with Royal Vopak of the Netherlands for 23 years and was Global Director for Vopak’s chemicals business with offices in HQ located in Rotterdam..

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.