February 4, 2023

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AG&P signs third charter agreement with ADNOC L&S

Atlantic Gulf & Pacific International Holdings (AG&P) announced on Thursday that it has signed a third charter agreement with ADNOC Logistics & Services (ADNOC L&S) to use its Ghasha vessel as a floating storage unit (FSU).

The downstream liquefied natural gas (LNG) platform and infrastructure development company said Ghasha will be deployed at AG&P’s LNG import terminal in India, which is scheduled to become operational in the second half of 2024.

The agreement, for a term of 11 years with an option for a four-year extension, strengthens the existing relationship between the two companies, who previously entered into 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 creating 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 refitting our older vessels to extend their lifespan, creating value and new revenue streams,” says Abdulkareem Al Masabi, CEO of ADNOC L&S , said.

The operation and maintenance of the FSU will be handled by ADNOC L&S, while the conversion of the LNG carrier (LNGC) into an FSU will be carried out by GAS Entec, a subsidiary of AG&P.

The FSU will be moored alongside a regasification unit manufactured by the subsidiary. The integrated terminal will have an initial capacity of 5 million tonnes per year (mtpa).

Built in Japan, the Ghasha 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.

In October, AG&P also successfully completed the conversion of a 137,512 cubic meter LNG tanker named ISH into an FSU for the first LNG import terminal in the Philippines. The PHLNG is ready to deliver gas by the first quarter of 2023.

“AG&P is excited to be working closely with ADNOC L&S to continue bringing energy to key markets. We are also proud of AG&P’s Gas-Entec business, which has grown into a global leader in LNG technology. The ADNOC L&S FSU and regasification unit is a powerful combination to bring gas to new markets,” said Joseph Sigelman, AG&P Group Chairman and CEO.