ADNOC FSU to Become India LNG Facility
Executives with the downstream logistics firm Atlantic Gulf & Pacific (AG&P) and ADNOC Logistics and Services (ADNOC L&S) have signed an agreement to charter an ADNOC-owned floating storage unit (FSU) on a long-term basis at AG&P’s new liquefied natural gas (LNG) import facility at Karaikal Port in Puducherry, India.
The agreement covers the conversion, supply, operations and maintenance of the 137,756-cubic-meter FSU and includes a 15-year charter period, according to a written statement Tuesday from AG&P and ADNOC L&S. The companies noted the Karaikal FSU will be only the world’s fourth FSU-based LNG import facility, joining vessels in Bahrain, Malaysia and Malta. They added that ADNOC L&S will provide a Japan-built, Moss-type containment vessel as FSU from its fleet of eight LNG ships.
“This agreement with Atlantic Gulf & Pacific is significant for ADNOC Logistics & Services in a number of ways,” commented Abdulkareem Al Masabi, CEO of ADNOC L&S. “Firstly, it represents our first agreement with AG&P and one of our company’s most important goals is to find creative ways to branch out and find new partnerships around the world to fuel our company’s safer, smarter growth. It is also an important agreement because it provides AG&P with additional storage flexibility for their LNG terminal as well as giving us the chance to generate more value from one of our historical assets which is coming to the end of its current contract.”
AG&P will start construction on the new LNG import terminal in southern India this quarter, with commercial operations projected to begin before the end of 2021, the companies stated. They added the AG&P-owned and -operated facility initially will boast a capacity of 1 million tonnes per annum (mtpa) – expanded to 3 mtpa in the medium term with increasing demand. The facility will serve domestic, industrial and commercial customers within a 500-kilometer radius, the firms also stated.
“We are privileged to work with ADNOC L&S, one of the world’s leaders in LNG logistics with an extensive, state-of-the-art, highly maintained fleet,” remarked AG&P Terminals & Logistics President Karthik Sathyamoorthy. “Both of our companies will work very closely to provide a comprehensive LNG solution for our downstream customers through the Karaikal LNG facility. AG&P has focused on bringing down the unit cost of re-gasification terminals for smaller volumes. AG&P and ADNOC L&S are excited to reach this critical goal for our customers.”
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