ADNOC L&S along with Atlantic Gulf & Pacific (AG&P) shake their hand and inked a 15-year agreement concerning a floating LNG storage unit in Karaikal, India. Under the terms of the charter deal, ADNOC will provide one of its 8 LNG vessels, a 137.756 cbm Moss-type LNG tanker that would be converted to an FSU.
In fact, the tanker vessel is intended to operate in the new LNG import terminal of AG&P, which is located in Karaikal Port in Puducherry, India.
Their collaboration will cover conversion, supply, operations, and maintenance of the floating storage unit during the following 15 years.
As for the terminal’s construction, is estimated to begin in Q1 this year, while is expected to start its commercial operations before the end of 2021.
Both of our companies will work very closely to provide a comprehensive LNG solution for our downstream customers through the Karaikal LNG Facility. AG&P has focused on bringing down the unit cost of re-gasification terminals for smaller volumes. AG&P and ADNOC L&S are excited to reach this critical goal for our customers.
…Karthik Sathyamoorthy, President of AG&P Terminals & Logistics, concluded.
According to the companies, Karaikal FSU will be the 4th FSU-base LNG import terminal in the world, following those in Malta, Malaysia, and Bahrain.
This is an important agreement because it provides AG&P with additional storage flexibility for their LNG terminal as well as giving us the chance to generate more value from one of our historical assets which is coming to the end of its current contract.
…as Abdulkareem Al Masabi, CEO of ADNOC L&S said.
For the records, the LNG infrastructure is estimated to have an initial capacity of of 1 million tonnes per year and in case the demand is increased, it will be then expanded to 3 MTPA in the medium term.
Overall, ADNOC recently inked an agreement with Eni in order to explore new opportunities in carbon capture utilization and storage (CCUS).
