AG&P enters FSU charter deal with ADNOC for LNG terminal in India

LNG development company Atlantic Gulf & Pacific (AG&P) has signed a charter agreement with ADNOC Logistics & Services (ADNOC L&S), the shipping unit of the Abu Dhabi National Oil Company, to utilise the latter’s LNG carrier as a floating storage unit (FSU) at its planned LNG import terminal in India.

Under the 11-year agreement, the LNG carrier Ghasha will be used at AG&P’s LNG import terminal in India, which will be commissioned in the second half of 2024.

The vessel was built in Japan and is a moss-type containment vessel with a capacity of around 138,000 cubic metres.

The new contract between ADNOC L&S and AG&P, which has the option of a four-year extension, follows the previous two similar agreements for FSUs in India and the Philippines.

Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “This agreement with AG&P builds on a phenomenal period of global expansion for ADNOC L&S as we focus on growth, diversification and unlocking new revenue streams.

“ADNOC L&S is in the midst of a major renewal project of its LNG fleet and, as we do so, we are repurposing our older vessels to extend their life, generating incremental value and new revenue streams.”

The operations and maintenance of the FSU will be undertaken by ADNOC L&S, while the conversion of the LNG carrier to an FSU will be completed by GAS Entec, an AG&P subsidiary.

The FSU will be moored alongside a regasification unit, manufactured by the subsidiary. The integrated terminal will have an initial capacity of 5 million tons per annum (mtpa).

In the meantime, AG&P is preparing to open the first LNG import terminal in Philippines(PHLNG) in 2023.

The company recently completed the conversion of the ISH, a 137,512 cbm LNG carrier, into a floating storage unit for the combined offshore-onshore import terminal that will have an initial capacity of 5 mtpa.