Adnoc L&S and AG&P sign charter agreement for floating storage unit

Adnoc Logistics & Services (Adnoc L&S) and Atlantic Gulf & Pacific International Holdings (AG&P), a leading downstream LNG platform and infrastructure development company, have signed a charter agreement to utilise Adnoc L&S’s LNG Carrier Ish as a Floating Storage Facility (FSU).

Under the agreement terms, starting Q3 2022, AG&P will use the carrier for the first LNG Import Terminal in the Philippines at Ilijan in Batangas Bay (PHLNG).

The agreement, which is valid for 11 years with the option of extension by four years, strengthens an existing relationship between the two companies and builds on a previous agreement between the two companies to provide another FSU in India, signed in 2021. It continues Adnoc L&S’ ongoing drive to diversify its customer base and enhance revenue streams.

The vessel is part of a fleet of eight LNG vessels operated by Adnoc L&S and is currently under contract to Adnoc LNG, a subsidiary of Adnoc. Upon the conclusion of its contract with Adnoc LNG, the Ish will be deployed to AG&P as a floating storage facility, extending the vessel’s life by at least 11 years and up to 15 years and bolstering Adnoc L&S’ recently established FSU revenue stream, while providing PHLNG’s customers with the resiliency of supply.

Capt. Abdulkareem Al Masabi, CEO of Adnoc L&S, commented, “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.

“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. Our project with AG&P in the Philippines will contribute to the country’s economic growth by leveraging the potential of clean LNG for power generation.”

The supply, operations and maintenance of the FSU will be undertaken by Adnoc L&S, while the conversion of the LNG Carrier (LNGC) to FSU will be completed by AG&P subsidiary, GAS Entec. PHLNG will be the 5th FSU-based LNG import terminal globally, after those in India, Malta, Malaysia, and Bahrain. The integrated PHLNG offshore/onshore import terminal will have an initial capacity of 5 million tonnes per annum (MTPA).

Joseph Sigelman, AG&P Group Chairman and CEO, said, “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.”

The Ish is part of Adnoc L&S’ diverse fleet of more than 200 vessels, which, when combined with its 1.5 million square meter logistics base in Abu Dhabi and its integrated logistics capabilities, make the company the region’s leading marine logistics provider.

The Ish was built in 1995 in Japan and had a capacity of 137,315.444 cubic metres of LNG. At the time of its inauguration was one of the largest LNG vessels in the world.

Meanwhile Adnoc Distribution, the UAE’s largest fuel and convenience store retailer, has partnered with Magnati, a wholly owned subsidiary of First Abu Dhabi Bank (FAB), to introduce consumers to the future of retail with the region’s first-of-its-kind fully autonomous convenience store.

Located at Adnoc’s Sheikh Khalifa Energy Complex, the pilot Adnoc Oasis store opened its doors in November, welcoming customers to a fully automated convenience store enabled by Magnati’s state-of-the-art payment solutions and autonomous technology. The store is the first in the region to accept card and device payments, such as Samsung Pay, Apple Pay, Google Pay, in addition to the Adnoc Wallet.

Customers visiting the store start by registering their preferred payment method, which allows them to pick up items that will be added to their cart and billed automatically. Once they are done shopping, they can depart without waiting in checkout queues to pay. Automating the checkout process affords customers greater convenience and time savings, while maintaining the highest levels of personal and payment security. It also increases health safety as contactless payments and lower human interaction reduce the public’s exposure to viruses.