AG&P to lease floating storage unit from UAE firm
BY LENIE LECTURA – FEBRUARY 23, 2022
from Business Mirror
Atlantic, Gulf & Pacific International Holdings (AG&P) will lease a floating storage unit (FSU) from a state-owned oil company of the United Arab Emirates (UAE) which would be used for the first Philippines LNG (liquefied natural gas) import terminal (PHLNG) in Batangas Bay.
AG&P signed a long-term charter agreement with ADNOC Logistics and Services (ADNOC L&S) for the supply, operations, and maintenance of the vessel named ISH, a 137,512-cubic meter FSU.
The FSU is being chartered for 11 years with an option to extend by another four years.
“PHLNG will store LNG and dispatch natural gas, providing a critical, clean transition fuel for the Philippines. We are privileged to have ADNOC Logistics and Services, a foremost global leader in LNG logistics, as our partner to transition the Philippines to cleaner fuel through AG&P’s PHLNG import terminal,” said Joseph Sigelman, chairman and CEO of AG&P Group.
Capt. Abdulkareem Al Masabi, CEO of ADNOC L&S said the project with AG&P will contribute to the economic growth of the country by leveraging the potential of clean LNG for power generation.
“This agreement with AG&P builds on our existing partnership and demonstrates ADNOC L&S’ continued focus on maximizing 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 surplus value and new opportunities for growth.
Furthermore, as the provider of world-class shipping, offshore logistics, and onshore services, we are growing our global footprint, delivering cutting-edge technology and services to our partners,” he said.
ADNOC L&S will provide a Japan-built, Moss-type containment vessel as FSU for the project from its fleet of eight LNG ships. The FSU is part of the combined offshore/onshore terminal that will have an initial capacity of 5 million tons per annum and provide its customers with the resiliency of supply, even in storms.
The PHLNG import terminal is under construction and commercial operation is scheduled to commence in early third quarter of this year.
The hybrid-designed PHLNG import terminal will be commissioned in two phases. The first phase will be commissioned with the FSU storage in the third quarter, and the two additional onshore storage tanks will be integrated by the end of the second phase in 2024.
PHLNG will then have a scalable onshore regasification capacity of 504 mmscfd and 257,000 cbm of storage that will ensure the high availability and reliability of natural gas for its customers. The terminal will also act as a gateway in providing breakbulk LNG supply to various islands across the country.
AG&P had said it could spend P14.6 billion for the planned LNG import terminal. Once completed, it is expected to supply the LNG requirements of SMC Global Power Holdings Corp. (SMCGPH).
In December last year, the conglomerate informed the Department of Energy of its application for the conduct of a system impact study for its 6,492MW Navotas LNG Power Plant and the 300MW Sangali LNG Project to be located in Sangali, Zamboanga City.
SMCGPH will also proceed with its proposed 1,313MW combined cycle power plant in Batangas.
