Abu Dhabi National Oil Co. unit signs charter deal for LNG carrier to be import terminal on Indian East Coast
Abu Dhabi National Oil Company subsidiary ADNOC Logistics & Services and Singapore-based Atlantic, Gulf and Pacific (AG&P) have signed a charter agreement to use an LNG carrier from the ADNOC fleet as a floating storage unit in India.
The LNG carrier “Ghasha” was built in Japan and is a Moss-type containment vessel with a capacity of around 138,000 cubic metres and is part of ADNOC L&S’s diverse operational fleet of more than 300 vessels.
AG&P has signed an agreement with Karaikal Port on the southeast coast if India to develop an LNG import terminal.
Karaikal Port is a deep-water facility in the state of Tamil Nadu and as part of the port’s expansion beyond commercial cargoes, it allocated an area within its existing breakwater to develop an LNG terminal to serve power, industrial and other customers in the region.
The LNG terminal when completed in 2024 would be close to the existing Cauvery Basin gas pipeline network owned by Gas Authority of India.
AG&P has said the development of the Karaikal LNG project would complement Indian Oil Corp.’s terminal at Ennore, 300 kilometres to the north and still in the state of Tamil Nadu.
Long term
“The charter deal is valid for 11 years with the option of a four-year extension,” said a statement from ADNOC L&S.
“This agreement with AG&P builds on a phenomenal period of global expansion for ADNOC L&S as we focus on growth, diversification and unlocking new revenue streams,” said Abdulkareem Al Masabi, Chief Executive of ADNOC L&S.
“ADNOC L&S is in the midst of a major renewal project of its LNG fleet and, as we do so, we are repurposing our older vessels to extend their life and generating incremental value,” added Al Masabi.
The statement explained that the operations and maintenance of the FSU would be undertaken by ADNOC L&S, while the conversion of the LNG carrier to an FSU will be completed by GAS Entec, an AG&P subsidiary.
“The FSU will be moored alongside a regasification unit, manufactured by the subsidiary,” it said.
The integrated terminal will have an initial capacity of 5 million tonnes per annum
“AG&P is thrilled to work closely with ADNOC L&S to continue to bring energy to important markets,” said Joseph Sigelman, Chairman and CEO of AG&P Group.
“We are also proud of AG&P's Gas Entec business, which has become a world leader in LNG technology,” added Sigelman.
Two LNG newbuilds ordered from Chinese shipyard by logistics unit of Abu Dhabi National Oil Company
Abu Dhabi National Oil Co (Adnoc), the owner of the Das Island LNG export plant in the United Arab Emirates, said its logistics arm had signed a contract with a Chinese shipyard for two newbuild LNG carriers.
Adnoc Logistics and Services (Adnoc L&S) said the two vessels with 175,000 cubic metres capacity would join the existing fleet in 2025.
“The purchase, part of the company’s broader growth and expansion strategy, further reinforces its position as the UAE’s leading shipping and maritime operator,” said Adnoc L&S.
“The new LNG vessels will be crucial enablers of Adnoc’s 2030 growth strategy, supporting its existing LNG business as well as its ambitions to grow its LNG production capacity,” the company explained.
The two carriers will be built at the Jiangnan Shipyard, located northeast of Shanghai on Changxing Island at the mouth of the Yangtze River.
Adnoc L&S has the largest and most diversified fleet of vessels within the Middle East and its trading fleet transports crude oil, refined products, dry bulk, containerised cargo, liquefied petroleum gas and LNG to global markets through its owned and chartered vessels.
Growth strategy
“The expansion and modernisation of our LNG fleet will be a key enabler of Adnoc L&S’ growth strategy. This acquisition helps future-proof our fleet with more sustainable, modern vessels capable of serving our customers for the next 25 years and deepens our partnership with Jiangnan Shipyard,” explained Captain Abdulkareem Al Masabi, Chief Executive of Adnoc L&S.
Adnoc L&S currently has eight LNG carriers among its fleet of over 40 vessels.
The newbuild LNG vessels are significantly larger than the current Adnoc L&S fleet of LNG ship which each have a capacity of 137,000 cubic metres.
Lin Ou, Chairman of Jiangnan Shipyard, said the yard was proud to continue its relationship with Adnoc L&S.
“This order for large LNG carriers is another milestone in the strategic portfolio of Jiangnan shipyard. We are committed to delivering these vessels on time, with good quality and ensuring the highest possible customer satisfaction,” stated Lin.
The Das Island LNG plant produces about 6 million tonnes per annum of LNG and came on stream in 1977 as the first liquefaction and production facility in the Arabian Gulf.
The plant is 70 percent owned by Adnoc and the other shareholders are Japan’s Mitsui & Co with 15 percent, UK major BP with 10 percent and TotalEnergies with 5 percent.
Oldest Middle East LNG supplier UAE and Asia's newest producer Inpex plan LNG bunkering
Abu Dhabi National Oil Company (Adnoc), the energy and liquefied natural gas producer of the United Arab Emirates, has signed an agreement with Inpex Corp. of Japan to explore LNG bunkering opportunities in the Middle East and Southeast Asia.
