ADNOC Logistics and Services has entered into an agreement with Atlantic Gulf & Pacific (AG&P) for the conversion, supply, operations, and maintenance of a floating storage unit (FSU) at India’s Karaikal Port.
Under the agreement, the 137,756 cubic-meter FSU owned by ADNOC L&S will be chartered to AG&P for 15 years through an innovative commercial model enabling supply to be scaled to match demand.
The terminal will be India’s first FSU-based LNG import terminal and construction will begin in the first quarter of 2020, with commercial operations expected to start before the end of 2021.
The LNG import facility at the Karaikal Port will have an initial capacity of 1mtpa which will be expanded to 3mtpa in the medium term as demand increases.
“This represents our first agreement with AG&P and one of our company’s most important goals is to find creative ways to branch out and find new partnerships around the world to fuel our company’s safer, smarter growth,” said Abdulkareem Al Masabi, CEO of ADNOC L&S.
“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 regasification terminals for smaller volumes,” added Karthik Sathyamoorthy, president of AG&P Terminals & Logistics.