An Abu Dhabi National Oil Company (Adnoc) subsidiary has signed a charter deal with Atlantic Gulf & Pacific International Holdings (AG&P) to use its Ghasha liquefied natural gas carrier as a floating storage unit offshore India.
Adnoc Logistics & Services (Adnoc L&S) confirmed the development on Wednesday and said the carrier will be used at AG&P’s liqiefied natural gas import terminal in India, which is expected to be commissioned in the second half of 2024.
“The agreement, valid for 11 years with the option of a four-year extension, strengthens the existing relationship between the two companies, which have previously entered two similar agreements for FSUs in India and the Philippines,” Adnoc L&S said.
Adnoc L&S said it will carry out operations and maintenance of the FSU, while the conversion of the Ghasha from an LNG carrier to an FSU will be completed by AG&P subsidiary Gas Entec.
“The FSU will be moored alongside a regasification unit, manufactured by the subsidiary,” it noted.
The integrated terminal offshore India will have an initial capacity of 5 million tonnes per annum.
The Ghasha was built in Japan and is a “Moss-type containment vessel with a capacity of around 138,000 cubic metres”, Adnoc stated.
Adnoc L&S chief executive Captain Abdulkareem Al Masabi said the company is “in the midst of a major renewal project of its LNG fleet” and is repurposing its older vessels to extend their life, generating incremental value and new revenue streams.
AG&P chief executive Joseph Sigelman said the FSU, plus the regasification unit, “is a powerful combination for bringing gas to new markets”.