Atlantic Gulf & Pacific International Holdings (AG&P) said on Thursday it has signed a third charter agreement with ADNOC Logistics & Services (ADNOC L&S) to utilize the latter’s carrier called Ghasha as a floating storage unit (FSU).
The downstream liquified natural gas (LNG) platform and infrastructure development company said Ghasha will be used at AG&P’s LNG Import Terminal in India, which will be commissioned in the second half of 2024.
The agreement, valid for 11 years with the option of a four-year extension, strengthens the existing relationship between the two companies, which have previously entered two similar agreements for FSUs in India and the Philippines.
“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,” Abdulkareem Al Masabi, CEO of ADNOC L&S, said.
The operations and maintenance of the FSU will be undertaken by ADNOC L&S, while the conversion of the LNG Carrier (LNGC) 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).
Built in Japan, Ghasha a moss-type containment vessel with a capacity of around 138,000 cubic meters. It is part of ADNOC L&S’ diverse operational fleet of more than 300 vessels.
In October, AG&P has also successfully completed the conversion of a 137,512 cubic meter LNG carrier called ISH into an FSU for the first LNG Import Terminal in the Philippines. The PHLNG is poised to deliver gas by the first quarter of 2023.
“AG&P is thrilled to work closely with ADNOC L&S to continue to bring energy to important markets. We are also proud of AG&P’s Gas Entec business, which has become a world leader in LNG technology. The ADNOC L&S FSU, plus the regasification unit, is a powerful combination for bringing gas to new markets,” said Joseph Sigelman, chairman and CEO of the AG&P Group.