Under the agreement ADNOC L&S will provide a 137,756 cu m floating storage unit (FSU) from a conversion of one of eight LNG vessels in its fleet to be located at AG&P’s new LNG import facility at Karaikal Port in Puducherry, India.
The deal covers the supply, operation and maintenance of the FSU for a period of 15 years. Construction of the terminal is to start in Q1 this year with it expected to be operational before the end of 2021.
“This agreement with Atlantic Gulf & Pacific is significant for ADNOC Logistics & Services in a number of ways,” said Abdulkareem Al Masabi, ceo of 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.”
It will be only the fourth FSU-based LNG import terminal in the world, after those in Malta, Malaysia and Bahrain.
Karthik Sathyamoorthy, President of AG&P Terminals & Logistics, said, “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.”
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