VAS LNG has been established to explore business opportunities in the LNG sector, says Pakistan-headquartered petroleum products group Hascol.
The formation of the new business entity was announced via a filing with the Karachi Stock Exchange. VAS LNG (Pte) will be 70% owned by Vitol, with Hascol Petroleum holding the balance of shares.
As reported by Bunkerspot, in April 2016 Vitol paid $28 million for a 15% stake in the company, and has now exercised the option to increase its shareholding in the business to 25%.
Hascol is involved in the purchase, storage and sale of a variety of petroleum products, including bunkers. It supplies HFO and MGO at Karachi and Port Qasim, and currently leases tank storage at Port Qasim.
Last May, the company agreed to pay Rs 375 million for a 15% stake in a joint venture company which will develop and operate a 200,000 metric tonne-capacity oil storage and terminal facility at the port.
At the time, in a filing on the Pakistan Stock Exchange, Hascol said that other ‘sponsors and investors’ are partnering on the joint venture, but they were not named.
A third LNG terminal at the Port of Qasim is scheduled to come on line in 2018, which would take total operational capacity at the port to almost 2,000 million cubic feet per day. The new terminal, under construction by Turkish company, Global Energy Infrastructure Ltd (GEIL), will have a capacity of 750 million cubic feet per day.