Singapore’s Atlantic, Gulf & Pacific International Holdings (AG&P) will deploy an Adnoc Logistics & Services (Adnoc L&S) liquefied natural gas carrier as a floating storage unit in the Philippines.
The agreement will run for 11 years from the third quarter of 2022, with an option to extend by a further four years.
The deal for the LNG carrier Ish “builds on a previous agreement between the two companies to provide another FSU in India, signed in 2021”, state-owned Abu Dhabi National Oil Company (Adnoc) said.
AG&P will use the Ish for PHLNG's first LNG import terminal at Ilijan in Batangas Bay.
The supply, operation and maintenance of the vessel will be carried out by Adnoc L&S, while AG&P subsidiary Gas Entec will convert the LNG carrier to an FSU.
“PHLNG will be the fifth FSU-based LNG import terminal in the world, after those in India, Malta, Malaysia and Bahrain,” Adnoc said.
The integrated terminal will have an initial capacity of 5 million tonnes per annum, it added.
The Ish is part of the fleet of eight LNG vessels operated by Adnoc L&S and is currently under contract to subsidiary Adnoc LNG.
“Upon the conclusion of its contract with Adnoc LNG, the Ish will be deployed to AG&P as an FSU, 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,” Adnoc said.
Adnoc L&S chief executive Abdulkareem Al Masabi said the agreement builds on the company’s existing partnership with AG&P and demonstrates its continued focus on maximising value from its assets.
“By providing AG&P with another flexible storage solution for their new LNG terminal, we are able to extend the operational life of this vessel, unlocking incremental value and new opportunities for growth,” he said.
The Ish, built in 1995 in Japan, has a capacity of 137,500 cubic metres, which will be complemented by a further 120,000 cubic metres of onshore storage in two tanks that are expected to come on stream by 2024.