Liquefied Natural Gas (LNG) distributor Atlantic Gulf & Pacific Co of Manila Inc (AG&P) announced it has signed an agreement with ADNOC Logistics and Services (ADNOC L&S) for conversion, supply, operations and maintenance of a Floating Storage Unit (FSU) at AG&P’s new LNG import facility to be set up at Karaikal Port in Puducherry.
“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.” Karthik Sathyamoorthy, President of AG&P Terminals & Logistics said in a statement.
The FSU owned by ADNOC L&S is being chartered for 15 years through a commercial model enabling supply to be scaled to match demand. Construction on the terminal will begin in the first quarter of 2020 with commercial operations expected to commence before the end of 2021.
“The Karaikal FSU will be only the 4th 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,” the company said in a statement.
The LNG import facility at Karaikal Port will have an initial capacity of 1 million tonnes per annum (MTPA) which will be expanded to 3 MTPA in the medium-term as demand increases.
The terminal is expected to cater to domestic, industrial and commercial customers within a 500 km radius including the heavily industrialized regions of central Tamil Nadu. In addition, it will serve gas-fired power plants and AG&P’s own city gas distribution network across South India.
Source:https://energy.economictimes.indiatimes.com/news/oil-and-gas/agp-adnoc-sign-agreement-for-long-term-charter-of-storage-unit-for-lng-terminal/74062328