Shipowner and operator Adnoc Logistics & Services (Adnoc L&S) has signed a deal to charter one of its fleet of steam turbine LNG carriers to Atlantic Gulf & Pacific International Holdings (AG&P).
Under the agreement, Adnoc L&S will charter the 137,315-cbm Ish (built 1995) to AG&P for a period of 11 years with an option to extend the hire by a further four years.
The charter will start in the third quarter of 2022.
AG&P plans to use the Japanese-built LNG carrier as a floating storage unit to serve what it said will be a first LNG Import Terminal in the Philippines at Ilijan in Batangas Bay (PHLNG).
Gas Entec, which is a subsidiary of AG&P, will handle the conversion of the LNG carrier. Adnoc L&S will operate and maintain it when the vessel starts work as an FSU.
The Ish is part of Adnoc L&S' eight-vessel LNG carrier fleet which are chartered to Adnoc group company Adnoc LNG.
Adnoc L&S and AG&P hooked up together in 2021 on another LNG carrier which was to be used as an FSU in India.
The Adnoc group company said last year that it had chartered out the 137,540-cbm Al Khaznah (built 1994) on a 15-year deal with a five-year extension option to AG&P for its new Karaikal terminal in India. But it is unclear if this project is going ahead.
Vessel capacity (cbm) built
Al Khaznah 137,540 1994
Shahamah 135,469 1994
Ghasha 137,514 1995
Ish 137,540 1995
Mubaraz 137,000 1996
Mraweh 137,000 1996
Al Hamra 137,000 1997
Umm Al Ashtan 137,000 1997
Speaking about the latest charter on the Ish, Adnoc L&S chief executive Captain Abdulkareem Al Masabi said: “This agreement builds on our existing partnership with AG&P and demonstrates our continued focus on maximising value from our assets.
“By providing AG&P with another flexible storage solution for their new LNG terminal, we can extend the operational life of this vessel, unlocking incremental value and new growth opportunities.”
AG&P Group chairman and chief executive Joseph Sigelman said: “PHLNG will store LNG and dispatch natural gas, providing a critical, clean transition fuel for the Philippines.
PHLNG will be AG&P's fifth FSU-based LNG import terminal globally, after those in India, Malta, Malaysia, and Bahrain.
The integrated offshore/onshore import terminal will have an initial capacity of 5 million tonnes per annum.
Separately the Philippines power provider First Gen Corp is planning to bring a first LNG terminal for the country by the third quarter of 2022 using a floating storage and regasification unit supplied by BW Gas. The 162,400-cbm BW Paris (built 2009) is under conversion for this project.
