AG&P, Air Liquide in Asian small-scale LNG pact

AG&P, Air Liquide in Asian small-scale LNG pact
Illustration purposes only (Image courtesy of AG&P)

Atlantic, Gulf and Pacific Company (AG&P) signed a memorandum of understanding with Air Liquide to develop small-scale LNG infrastructure across Asia. 

The partnership will focus on liquefaction, transportation and downstream infrastructure to deliver LNG to end users seeking LNG for power, shipping, ground transport and other industrial applications.

AG&P sad that under the MoU, the two companies will start developing standardized downstream LNG modules.

Commenting on the agreement, AG&P’s chairman, Jose Leviste said the agreement with Air Liquide “will enable the integration of downstream LNG infrastructure, including small-scale regasification terminals, distribution hubs, truck loading stations and boil-off gas handling systems into AG&P’s LNG supply network for rapid delivery of tolled gas to last-mile customers.”

The MoU covers boil-off gas (BOG) management systems eliminating gas flaring.

The demand for LNG continues to grow worldwide as countries seek to replace oil and heavy fuel oil with LNG as a cleaner and cheaper fuel for power generation, shipping, ground transport and industrial use, AG&P’s statement reads.

However, uptake remains slow because of a lack of the requisite infrastructure and investment to ensure supply.

“Much of Asia requires the development of assets to bring the gas from its source to demand centers dispersed over vast geographies where it is estimated that US$70 to $80 billion needs to be invested in gas infrastructure over the next decade.

Through this MoU, AG&P and Air Liquide aim to start the development of this LNG infrastructure