In a significant move to bolster Pakistan’s energy infrastructure, the government has approved a 30-year lease extension for Engro Vopak Terminal Limited (EVTL) to continue operating its liquefied petroleum gas (LPG) and liquid chemical terminal at Port Qasim. ​

Strategic Lease Renewal

The Port Qasim Authority (PQA) signed the second and third Supplemental Implementation Agreements (SIAs) with EVTL on January 15 and February 24, 2025, respectively. These agreements followed comprehensive evaluations of EVTL’s operational model, financial health, and contractual commitments. EVTL submitted its final proposal on February 26, 2025, leading the PQA board to recommend a 30-year concession extension effective from June 18, 2026, under a build-operate-transfer (BOT) and non-exclusive framework. ​

Governmental Oversight and Approval

The Special Investment Facilitation Council (SIFC) concurred with the PQA board’s recommendation, marking a reversal from the Ministry of Maritime Affairs’ earlier stance, which favored initiating a fresh tender process. EVTL had emphasized its $100 million investment in the terminal and expressed intentions for continued investment contingent upon lease renewal.

Infrastructure Significance

Beyond its role in LPG and liquid chemical storage, the terminal’s strategic importance is underscored by an LNG pipeline traversing the leased land, connecting Engro’s LNG terminal to the Sui Southern Gas Company’s network. This infrastructure is vital for ensuring energy distribution efficiency across the region. ​

Due Diligence and Asset Valuation

The PQA highlighted the necessity for an independent third-party valuation of the terminal’s assets, prompting the Finance Division to facilitate this assessment. This step was crucial in ensuring transparency and informed decision-making regarding the lease extension.