Atlantic, Gulf & Pacific International Holdings said Wednesday it signed a long-term charter agreement with ADNOC Logistics and Services over the supply of liquefied natural gas to AG&P’s import terminal in Batangas Bay.
The agreement includes the delivery of ISH, a floating storage unit with a combined offshore and onshore terminal that will have an initial capacity of five million tons per annum in preparation for the completion of AG&P’s offshore terminal by the third quarter. ADNOC Logistics is a unit of Abu Dhabi National Oil Co. of the United Arab Emirates.
The 137,512 cubic meter FSU will be located at AG&P’s new facility, and is being chartered for 11 years with an option to extend by another four years. The FSU will provide customers with supply resiliency even during storms.
AG&P is constructing the import terminal, dubbed PHLNG, for commissioning in two phases.
The first phase will be commissioned with the FSU storage in the third quarter, while the two additional onshore storage tanks will be integrated by the end of the second phase in 2024.
The PHLNG will have a scalable onshore re-gasification capacity of 504 million standard cubic feet per day (mmscfd) and 257,000 cubic meter of storage that will ensure the high availability and reliability of natural gas to customers.
AG&P, a leading downstream LNG platform and infrastructure development company, said the terminal will also act as a gateway in providing breakbulk LNG supply to several islands across the country.
“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 chief executive officer AG&P Group.
ADNOC L&S will provide a Japan-built, Moss-type containment vessel as FSU for the project from its fleet of eight LNG ships.
“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,” said ADNOC L&S CEO Abdulkareem Al Masabi.
Masabi said ADNOC L&S, as the provider of world-class shipping, offshore logistics and onshore services, is expanding its global footprint, delivering cutting-edge technology and services.
“Our project with AG&P in the Philippines will contribute to the economic growth of the country by leveraging the potential of clean LNG for power generation,” he said.