ADNOC Logistics & Services, the state oil firm Abu Dhabi National Oil Company’s (ADNOC) fully integrated shipping and logistics division, will supply a floating storage unit to LNG logistics company Atlantic, Gulf & Pacific Company (AG&P) for the launch of the Philippines’ first LNG import terminal in July.
The Singapore-based Atlantic, Gulf & Pacific International Holdings (AG&P) has signed an 11-year charter contract with ADNOC L&S to convert the LNG carrier ISH into a floating storage unit (FSU) for a new facility at Ilijan in Batangas Bay.
The Philippines has been strategically planning to develop LNG import facilities to fuel its power plants for years, as the country is facing a major decline in its natural gas reserves. According to data from the energy ministry, six LNG terminal projects are slated to open between 2022 and 2025. First Gen Corporation (FGEN.PS), a Philippine power generator, recently stated that it plans to start importing at its terminal this year.
Once completed, the facility will serve the LNG demand requirements of various power projects of the SMC Global Power Holdings, one of the largest power companies in the Philippines, including the firm’s 1,200 megawatts (MWs) Ilijan combined-cycle power plant, and the 850-MW combined cycle power plant expansion.
This is the second FSU project between AG&P and ADNOC. In 2020, both companies agreed for ADNOC to supply an FSU to AG&P’s LNG import facility at Karaikal Port in India’s Puducherry. ADNOC L&S CEO Mr. Abdulkareem Al Masabi said in the statement that the deal reflects the company’s efforts on maximizing value from its existing assets while also expanding its global reach.