Engro Vopak Terminal Limited (EVTL) has initiated a feasibility study for Pakistan’s first refrigerated liquefied petroleum gas (LPG) import terminal. The proposed project aims to strengthen the country’s energy security by expanding LPG import capacity, increasing storage infrastructure, and improving supply chain resilience as domestic natural gas production continues to decline.
KARACHI: Engro Vopak Terminal Limited (EVTL) has announced the launch of a feasibility study for Pakistan’s first refrigerated liquefied petroleum gas (LPG) import terminal, marking a significant milestone in the country’s efforts to modernize its energy infrastructure and strengthen long-term energy security.
The study will assess the technical and commercial feasibility of developing a refrigerated LPG import and storage facility capable of enhancing Pakistan’s access to international LPG markets while expanding national storage capacity.
The initiative comes as Pakistan faces rising demand for cleaner fuels amid declining domestic natural gas production.
EVTL Partners with S&P Global Energy
To conduct the assessment, Engro Vopak Terminal Limited has partnered with S&P Global Energy, a leading global provider of energy market intelligence and advisory services.
According to EVTL, the feasibility study will evaluate the technical, commercial, and operational requirements for developing Pakistan’s first refrigerated LPG import terminal.
The assessment will examine:
- Technical feasibility
- Commercial viability
- Storage capacity requirements
- Logistics and supply chain integration
- Infrastructure development
- Economic sustainability
If found viable, the project could significantly improve Pakistan’s ability to meet growing domestic LPG demand.
Pakistan’s First Refrigerated LPG Import Terminal
The proposed facility would be the first refrigerated LPG import and storage terminal in Pakistan.
Unlike conventional pressurized LPG storage systems, refrigerated terminals store liquefied petroleum gas at extremely low temperatures, enabling significantly larger storage volumes while reducing transportation and handling costs.
According to EVTL, the project aims to:
- Improve access to international LPG markets
- Enable larger LPG cargo imports
- Expand national LPG storage capacity
- Strengthen supply chain resilience
- Improve supply flexibility during peak demand
- Enhance Pakistan’s long-term energy security
The company believes the investment could reduce supply disruptions while ensuring more reliable LPG availability across the country.
Rising LPG Demand Drives Infrastructure Expansion
Pakistan’s dependence on LPG has steadily increased as indigenous natural gas reserves continue to decline.
Growing consumption by households, industries, commercial users, and the transport sector has placed increasing pressure on existing LPG import and storage infrastructure.
According to EVTL, market assessments indicate Pakistan could face a widening supply gap in the coming years unless additional import capacity is developed.
Industry experts also believe larger storage facilities would help stabilize supplies during seasonal demand fluctuations and reduce the impact of international price volatility.
Project Follows $200 Million Port Qasim Expansion Plan
The feasibility study follows the renewal of EVTL’s Implementation Agreement with the Port Qasim Authority (PQA) in June 2026.
Under the renewed agreement, the company plans to invest more than $200 million to expand terminal operations and strengthen Pakistan’s bulk liquid storage infrastructure.
The proposed refrigerated LPG terminal forms part of EVTL’s broader long-term expansion strategy aimed at supporting Pakistan’s evolving energy requirements.
CEO Highlights Importance of Energy Security
Commenting on the initiative, Syed Ammar Shah, Chief Executive Officer of Engro Vopak Terminal Limited and Engro Elengy Terminal Limited, said Pakistan’s changing energy landscape requires stronger LPG supply chains and improved access to global energy markets.
He noted that expanding import infrastructure will become increasingly important as domestic energy demand continues to grow.
According to Shah, the partnership combines Royal Vopak’s international expertise in bulk liquid storage with Engro’s engineering capabilities and local market knowledge.
He added that many developed economies already operate refrigerated LPG terminals because of their efficiency, scalability, and ability to handle larger cargo volumes, making the feasibility study an important opportunity for Pakistan to evaluate global best practices.
Modern LPG Infrastructure Could Strengthen Energy Security
The development of refrigerated LPG storage infrastructure could transform Pakistan’s energy logistics by enabling larger shipments, lowering storage costs, and reducing dependence on smaller, more frequent imports.
Expanded storage capacity would also create strategic reserves capable of cushioning the country against temporary supply disruptions caused by international market volatility or shipping delays.
The project aligns with Pakistan’s broader strategy of modernizing energy infrastructure, diversifying fuel sources, and improving long-term energy resilience.
About Engro Vopak Terminal Limited
Engro Vopak Terminal Limited is a joint venture between Engro Corporation and Royal Vopak of the Netherlands, the world’s largest independent bulk liquid storage and handling company.
Established in 1997, EVTL operates Pakistan’s only integrated bulk liquid chemical and LPG terminal at Port Qasim, providing storage and handling services for chemicals, petroleum products, and liquefied petroleum gas.
If the refrigerated LPG terminal is found to be commercially and technically viable, it could become one of Pakistan’s most significant energy infrastructure investments, strengthening LPG supply chains, improving energy security, and supporting sustainable economic growth.