Sharjah 24 – WAM: ADNOC Logistics & Services (ADNOC L&S) and Atlantic Gulf & Pacific International Holdings (AG&P), a leading downstream LNG platform and infrastructure development company, have signed a charter agreement to utilise ADNOC L&S's LNG Carrier Ish as a Floating Storage Facility (FSU).
Under the agreement terms, starting Q3 2022, AG&P will use the carrier for the first LNG Import Terminal in the Philippines at Ilijan in Batangas Bay (PHLNG).
The agreement, which is valid for 11 years with the option of extension by four years, strengthens an existing relationship between the two companies and builds on a previous agreement between the two companies to provide another FSU in India, signed in 2021. It continues ADNOC L&S' ongoing drive to diversify its customer base and enhance revenue streams.
The vessel is part of a fleet of eight LNG vessels operated by ADNOC L&S and is currently under contract to ADNOC LNG, a subsidiary of ADNOC. Upon the conclusion of its contract with ADNOC LNG, the Ish will be deployed to AG&P as a floating storage facility, extending the vessel's life by at least 11 years and up to 15 years and bolstering ADNOC L&S' recently established FSU revenue stream, while providing PHLNG's customers with the resiliency of supply.
Capt. Abdulkareem Al Masabi, CEO of ADNOC L&S, commented, "This agreement builds on our existing partnership with AG&P and demonstrates our continued focus on maximising value from our assets. By providing AG&P with another flexible storage solution for their new LNG terminal, we can extend the operational life of this vessel, unlocking incremental value and new growth opportunities.
"Furthermore, as the provider of world-class shipping, offshore logistics and onshore services, we are growing our global footprint, delivering cutting-edge technology and services to our partners. Our project with AG&P in the Philippines will contribute to the country's economic growth by leveraging the potential of clean LNG for power generation."
The supply, operations and maintenance of the FSU will be undertaken by ADNOC L&S, while the conversion of the LNG Carrier (LNGC) to FSU will be completed by AG&P subsidiary, GAS Entec. PHLNG will be the 5th FSU-based LNG import terminal globally, after those in India, Malta, Malaysia, and Bahrain. The integrated PHLNG offshore/onshore import terminal will have an initial capacity of 5 million tonnes per annum (MTPA).
Joseph Sigelman, AG&P Group Chairman and CEO, said, "PHLNG will store LNG and dispatch natural gas, providing a critical, clean transition fuel for the Philippines. We are privileged to have ADNOC Logistics and Services, a foremost global leader in LNG logistics, as our partner to transition the Philippines to cleaner fuel through AG&P's PHLNG import terminal."
The Ish is part of ADNOC L&S' diverse fleet of more than 200 vessels, which, when combined with its 1.5 million square meter logistics base in Abu Dhabi and its integrated logistics capabilities, make the company the region's leading marine logistics provider.
The Ish was built in 1995 in Japan and had a capacity of 137,315.444 cubic metres of LNG. At the time of its inauguration was one of the largest LNG vessels in the world.
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