ETPL is a company formed for the specific purpose of developing and owning the Project. ETPL is currently a fully owned subsidiary of Engro Corp, the Project Sponsor.

Engro Corp is one of Pakistan’s largest conglomerates publicly listed on a number of the country’s stock exchanges. Engro Corp has interests in various sectors across Pakistan, including fertilizers, agriculture and foods, chemicals and the power sectors.

Upon completion of the proposed investment, IFC will have a minority equity interest in the Project.

Total Project cost is estimated to be around USD130 million to be funded via a combination of debt and equity financing.

Proposed investment by IFC in the Project includes: (i) investing up to USD7.5 million equity for around a 20% shareholding; and (ii) investing around USD20 million as an IFC senior A Loan.

35.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity	15.0

* These investment figures are indicative

The Project is going to be located at Port Qasim, near Karachi in Pakistan. Port Qasim is one of the country’s largest ports with a number of terminals handling various types of cargo. The Project site is adjacent to an existing chemicals import and handling terminal operated by another subsidiary of Engro Corp.

1. Support development of critical energy infrastructure needed to address the Pakistan''s growing gas supply deficit, helping reduce its reliance on future imports of oil and thereby helping relieve an ongoing constraint in the country''s balance of payments;

2. Support economic growth by enabling the import of natural gas as a feedstock for industrial and use and electric power generation, in a context of diminishing indigenous gas resources and the power sector''s reliance on expensive imported fuel oil for generation;

3. Enable increased use of a less carbon-intensive fossil fuel than imported heavy fuel oil and coal;

4. Increase revenues for Government of Pakistan through taxes and increased income for Port Qasim Authority (a government authority) through royalty and lease payments;

1. Providing long-term financing: IFC''s investment through an A Loan will assist the Project in securing longer term debt financing from other foreign and/or local lenders. Considering some of Pakistan''s ongoing economic and social challenges, IFC''s involvement is signal of support that will facilitate the Project''s debt financing on reasonable terms;

2. IFC as an equity investor: IFC''s equity investment acts as an endorsement of Engro Corp, a local sponsor developing Pakistan''s first LNG import terminal, while also supporting the government''s effort to enable import of LNG to help meet the country''s energy supply deficit related challenges;

3. Improving corporate governance: IFC''s continued support and strategic partnership with Engro Corp will promote higher standards of corporate governance and industry best practices;

4. Political risk mitigation: Perceptions of elevated political risk remain a primary deterrent to international private investment in Pakistan''s energy sector. IFC''s involvement in a greenfield project with an established local sponsor will help address some of these concerns and exert a strong signalling effect to private investors, thereby encouraging greater private participation in future energy sector projects.

A new LNG branch jetty will be constructed for LNG unloading, floating storage, and regasification. The natural gas will be transferred to the national gas pipeline network through a new 24 km underground pipeline, including a 3 km right of way (ROW) on private land outside of the port authority industry zone. Approximately 1.3 – 1.6 million cubic meters of sediment will be dredged from the jetty site. The dredged materials will be disposed within a 50 ha mangrove area inside the port industry zone as demarcated by Port Authorities.

The key E&S risks and issues include the following:

- Occupational health and safety
- Operational hazards, fire prevention, and emergency response
- Road transportation and community safety
- Biodiversity conservation for the mangrove area

Mitigation measures for the potential E&S impacts have been identified and are incorporated into an ESAP. The potential adverse E&S impacts of this project are diverse and irreversible and this is therefore an E&S Category A project.

The LNG branch jetty will be built at the existing EVTL terminal. The major portion of the pipeline will be built inside the port industry zone. The right of way for the 3-km section of the pipeline on private land will be negotiated according to market prices. Indigenous Peoples were not identified in the project area and no issues related to cultural heritage were identified in the project area; thus PS7: Indigenous Peoples and PS8: Cultural Heritage is not applicable.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.