ADNOC L&S Signs Agreement for Third Long-Term Charter of LNG Floating Storage Unit with AG&P
ADNOC Logistics & Services (ADNOC L&S) and Atlantic Gulf & Pacific International Holdings (AG&P), a leading downstream LNG platform and infrastructure development company, have signed their third charter agreement to utilize Ghasha, an ADNOC L&S liquefied natural gas (LNG) carrier, as a Floating Storage Unit (FSU).
- Agreement unlocks additional value from ADNOC L&S' growing operating fleet, reinforcing its position as region's largest shipping and integrated logistics company
- As ADNOC L&S renews its LNG fleet, older vessels are being repurposed to deliver new revenue streams
- AG&P to utilize ADNOC L&S' LNG Carrier Ghasha as floating storage for LNG Import Terminal in India
Under the terms of the agreement, the carrier 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.
Captain 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 (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).
Joseph Sigelman, Chairman & CEO, AG&P Group, said: "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."
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. When combined with a 1.5 million square meter logistics base in Abu Dhabi and its integrated logistics capabilities, ADNOC L&S is the region's largest shipping and integrated logistics company.