AG&P, ADNOC L&S sign agreement for the long-term charter of a FSU
AG&P, ADNOC Logistics and Services sign agreement for the long-term charter of a Floating Storage Unit (FSU) at the new AG&P LNG import facility at Karaikal Port, South India
WAREHOUSING & LOGISTICS

AG&P, ADNOC L&S sign agreement for the long-term charter of a FSU

Atlantic Gulf & Pacific (AG&P), the global downstream gas and LNG logistics company, and ADNOC Logistics and Services (ADNOC L&S) have signed an agreement 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 cu m FSU owned by ADNOC L&S is being chartered for 15 years through an innovative commercial model enabling supply to be scaled to match demand. Construction on the terminal will begin in Q1 2020 with commercial operations expected to commence before the end of 2021.
 
The Karaikal FSU will be only the fourth FSU-based LNG import terminal in the world, after those in Malta, Malaysia and Bahrain. ADNOC L&S will provide a Japan-built, Moss-type containment vessel as FSU for the project from its fleet of eight LNG ships.
 
“This agreement with Atlantic Gulf & Pacific is significant for ADNOC Logistics & Services in a number of ways,” said Abdulkareem Al Masabi, CEO, ADNOC L&S. “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.”
 
Owned and operated by AG&P, the LNG import facility at the Karaikal Port will have initial capacity of 1 million tonne per annum (mtpa) which will be expanded to 3 mtpa 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, it will serve gas-fired power plants as well as AG&P’s own extensive city gas distribution network across South India.
 
Karthik Sathyamoorthy, President, 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 re-gasification terminals for smaller volumes. AG&P and ADNOC L&S are excited to reach this critical goal for our customers.”

Atlantic Gulf & Pacific (AG&P), the global downstream gas and LNG logistics company, and ADNOC Logistics and Services (ADNOC L&S) have signed an agreement 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 cu m FSU owned by ADNOC L&S is being chartered for 15 years through an innovative commercial model enabling supply to be scaled to match demand. Construction on the terminal will begin in Q1 2020 with commercial operations expected to commence before the end of 2021. The Karaikal FSU will be only the fourth FSU-based LNG import terminal in the world, after those in Malta, Malaysia and Bahrain. ADNOC L&S will provide a Japan-built, Moss-type containment vessel as FSU for the project from its fleet of eight LNG ships. “This agreement with Atlantic Gulf & Pacific is significant for ADNOC Logistics & Services in a number of ways,” said Abdulkareem Al Masabi, CEO, ADNOC L&S. “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.” Owned and operated by AG&P, the LNG import facility at the Karaikal Port will have initial capacity of 1 million tonne per annum (mtpa) which will be expanded to 3 mtpa 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, it will serve gas-fired power plants as well as AG&P’s own extensive city gas distribution network across South India. Karthik Sathyamoorthy, President, 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 re-gasification terminals for smaller volumes. AG&P and ADNOC L&S are excited to reach this critical goal for our customers.”

Next Story
Infrastructure Urban

USA Mortgage Rates Reach 6.95%

In July 2024, the average mortgage rate in the USA rose to 6.95%, marking a significant increase and impacting homebuyers nationwide. This upward trend in mortgage rates is attributed to several economic factors, including inflationary pressures, shifts in the Federal Reserve?s monetary policy, and broader market dynamics. The rise in mortgage rates presents challenges for potential homebuyers, making borrowing more expensive and potentially slowing down the housing market. Higher rates can lead to increased monthly payments for homeowners, reducing affordability and potentially deterring new ..

Next Story
Real Estate

Toronto Home Sales Increase 4.2%

In June 2024, home sales in Toronto experienced a notable rise, increasing by 4.2% compared to the previous month. This growth highlights a positive trend in the Toronto real estate market, indicating robust buyer activity and a favorable environment for sellers. Several factors contribute to this uptick, including attractive mortgage rates, strong demand for housing, and a stable economic backdrop. The Toronto Regional Real Estate Board (TRREB) reported this increase, pointing to heightened buyer confidence and competitive market conditions. Despite rising interest rates in other parts of Nor..

Next Story
Real Estate

New Zealand Boosts Home Construction

New Zealand is set to implement regulatory changes aimed at boosting home construction to address the nation's housing shortage. The government plans to streamline building consent processes, reduce construction costs, and increase the supply of affordable housing. This initiative is part of a broader strategy to make housing more accessible and alleviate the pressure on the housing market. Key elements of the regulatory overhaul include simplifying the approval process for new housing projects and reducing bureaucratic hurdles that often delay construction. By cutting red tape, the government..

Hi There!

Now get regular updates from CW Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Construction News on Whatsapp! Enjoy

+91 81086 03000

Join us Telegram