Singapore-based Atlantic Gulf & Pacific International Holdings (AG&P) said on Wednesday it has signed a charter agreement to utilize ‘Ghasha’, a liquified natural gas (LNG) carrier owned by ADNOC Logistics & Services (ADNOC L&S), as a Floating Storage Unit (FSU) at an LNG import terminal in India.
Singapore-based Atlantic Gulf & Pacific International Holdings (AG&P) said on Wednesday it has signed a charter agreement to utilize ‘Ghasha’, a liquified natural gas (LNG) carrier owned by ADNOC Logistics & Services (ADNOC L&S), as a Floating Storage Unit (FSU) at an LNG import terminal in India.
AG&P, a downstream LNG platform and infrastructure development company, said the FSU will be commissioned in the second half of 2024 but did not disclose the location where the FSU will be deployed.
The charter agreement for ‘Ghasha’ is valid for 11 years with the option of a four-year extension. The deal strengthens the existing relationship between the two companies, which have previously entered two similar agreements for FSUs in India and the Philippines.
The FSU will be moored alongside a regasification unit, manufactured by GAS Entec, an AG&P subsidiary. The integrated terminal will have an initial capacity of 5 million tons per annum (mtpa).
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.
“AG&P is thrilled to work closely with ADNOCL&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,” Joseph Sigelman, Chairman & CEO, AG&P Group, said.
The LNG carrier ‘Ghasha’ was built in Japan and is 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.
“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,” Captain Abdulkareem Al Masabi, CEO, ADNOC L&S, said in a statement.
ADNOC L&S is the region’s largest shipping and integrated logistics company.
AG&P had started work on an LNG import terminal at Karaikal port in Puducherry in February 2020. The LNG import facility was expected to start commercial operations by the fourth quarter of 2021 but has been delayed due to COVID-led restrictions.
Earlier this month, Karthik Sathyamoorthy, President of AG&P Terminals and Logistics, told Reuters that the firm was “looking at a terminal in India but it doesn’t need to be in Karaikal per se”, without explaining why it was considering other locations.
Karaikal port is currently undergoing a corporate insolvency resolution process under India’s bankruptcy law.
