AG&P, ADNOC Logistics sign 15-year LNG charter deal for Indian import facility

2/10/2020

Liquefied natural gas (LNG) logistics firm Atlantic Gulf & Pacific (AG&P) and ADNOC Logistics and Services said on Monday they have signed a deal for the long-term charter of a floating storage unit (FSU) at a new import facility in southern India.

The agreement is for the conversion, supply, operations and maintenance of the FSU at AG&P’s new LNG import facility in Karaikal port in Puducherry, India, they said.

The 137,756 cubic metre FSU is owned by ADNOC Logistics and Services, which is a fully-owned firm by Abu Dhabi National Oil Company (ADNOC), and is being chartered for 15 years, the companies said in a joint statement.

Construction on the terminal will start in the first quarter of this year, with commercial operations expected to start before the end of 2021, they added.

Owned and operated by AG&P, the LNG import facility at the Karaikal port will have an initial capacity of 1 million tonnes per annum (mtpa) and will be expanded to 3 mtpa in the medium term as demand increases, the companies said.

The terminal will serve domestic, industrial and commercial customers within a 500-kilometre radius, including the heavily industrialized region of central Tamil Nadu, which has major manufacturing clusters for the fertilizer, cement, steel, textile, leather, sugar and garment industries, they said.

It will also serve gas-fired power plants as well as AG&P’s own city gas distribution network across southern India, they added.

Reporting by Jessica Jaganathan; editing by Uttaresh.V