Infrastructure development firm Atlantic, Gulf & Pacific International Holdings (AG&P) inked an 11-year charter agreement with ADNOC Logistics and Services (ADNOC L&S) of the United Arab Emirates (UAE) for the supply, operations and maintenance of a floating storage unit (FSU) for the former’s liquefied natural gas (LNG) import facility in Batangas Bay.
AG&p will charter long-term the ISH vessel, a 137,512 cubic meter FSU that will be supplied by the Middle Eastern company.
“The FSU is being chartered for 11 years with an option to extend by another four years,” AG&P has noted in its statement to the media.
It qualified that “ADNOC L&S will provide a Japan-built, moss-type containment vessel as FSU for the project from its fleet of eight LNG ships.”
AG&P explained that the floating storage unit of its PHLNG project, which is slated to start commercial operations by third quarter this year, is part of the combined offshore/onshore terminal that will have an initial capacity of 5.0 million tons per annum (MTPA) and provide its customers with the resiliency of supply, even in storms.
According to Joseph Sigelman, chairman and CEO of AG&P Group, their gas import facility “will store LNG and dispatch natural gas,” and such will serve as a critical component in the energy transition agenda of the country; as well as in meeting the needs of its gas off-takers so they can address dilemma of thinning power supply, primarily in the biggest power grid of Luzon.
The major gas off-takers from the AG&P LNG import facility will be the Ilijan gas plant of the San Miguel group; as well as its greenfield gas-fed power plant projects that will be on-line by 2024.
Additionally, Capt. Abdulkareem Al Masabi, chief executive officer of ADNOC L&S, conveyed that their agreement with AG&P “builds on our existing partnership and demonstrates ADNOC L&S’ continued focus on maximizing value from its assets.”
He further indicated “by providing AG&P with another flexible storage solution for their new LNG terminal, we are able to extend the operational life of this vessel, unlocking surplus value and new opportunities for growth.”
The ADNOC executive similarly asserted that in the provision of shipping and logistics for LNG facilities, “we are growing our global footprint, delivering cutting-edge technology and services to our partners.”
The AG&P’s LNG project in Batangas is a hybrid type of import terminal that will be commissioned in two phases. The first phase equipped with the FSU technology will be on stream by third quarter this year while the integration of two additional onshore storage tanks would reach commercial operations in 2024.
“PHLNG will have a scalable onshore regasification capacity of 504 mmscfd and 257,000 cbm of storage that will ensure the high availability and reliability of natural gas for its customers. The terminal will also act as a gateway in providing breakbulk LNG supply to various islands across the country,” AG&P stressed.