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AG&P and ADNOC sign FSU agreement

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LNG Industry,

Atlantic Gulf & Pacific (AG&P) has announced that it has signed an agreement with ADNOC Logistics and Services (ADNOC L&S) for the conversion, supply, operations and maintenance of a floating storage unit (FSU) at AG&P’s new LNG import facility located within Karaikal Port in Puducherry, India.

The 137 756 m3 FSU is owned by ADNOC L&S, and is being chartered for 15 years through an innovative commercial model enabling supply to be scaled to match demand. Construction on the terminal will commence in 1Q20, with commercial operations expected to start before the end of next year.

According to the statement, the Karaikal FSU will be the fourth FSU-based LNG import terminal in the world, after those in Malta, Malaysia and Bahrain. ADNOC L&S will reportedly provide a Japan-built, Moss-type containment vessel as the FSU for the project from its fleet of eight LNG ships.

Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “This agreement with Atlantic Gulf & Pacific is significant for ADNOC Logistics & Services in a number of ways.

“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.”

The LNG import facility at the Karaikal Port will be owned and operated by AG&P, and will have initial capacity of 1 million tpy. AG&P claims that this will be expanded to 3 million tpy in the medium-term as demand increases. The terminal will serve domestic, industrial and commercial customers within a 500 km radius, including the heavily industrialised region of central Tamil Nadu, which has major manufacturing clusters for the fertilizer, cement, steel, textile, leather, sugar and garment industries. In addition to this, the terminal will serve gas-fired power plants, as well as AG&P’s own extensive city gas distribution network across South India.

Karthik Sathyamoorthy, President of AG&P Terminals & Logistics, said: “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. 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 regasification terminals for smaller volumes. AG&P and ADNOC L&S are excited to reach this critical goal for our customers.”

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