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.
