The logistics arm of Abu Dhabi National Oil Company (ADNOC) will supply a floating storage unit to launch the Philippines’ first liquefied natural gas (LNG) import terminal in July, the companies said on Wednesday.
Singapore-based Atlantic, Gulf & Pacific International Holdings (AG&P) signed an 11-year charter agreement, extendable by four years, to convert a LNG carrier into a floating storage unit for a new terminal at Ilijan in Batangas Bay.
The Philippines’ domestic natural gas reserves are depleting and the country has been developing plans for LNG import terminals for years to feed its power plants.
Six LNG terminal projects have been proposed to come online between 2022 and 2025, energy ministry data shows. Philippine power producer First Gen has previously said it expects to start importing at its terminal this year.
AG&P’s terminal, with an initial capacity of 5 million tonnes per year, will be commissioned on July 1 with commercial operations starting soon afterwards, CEO Joseph Sigelman said.
The offshore LNG storage will be 137,000 cubic metres, which will be complemented by 120,000 cubic metres of onshore storage in two tanks that are set to come online by 2024, Sigelman said.
This is the second storage project between AG&P and ADNOC. In 2020 the companies agreed for ADNOC to supply an FSU to AG&P’s LNG import facility at Karaikal Port in India.
Sources revealed in November that ADNOC was weighing an initial public offering in Abu Dhabi this year of ADNOC Logistics & Services, the ADNOC subsidiary that is providing the storage unit to the Philippines.
Abdulkareem Al Masabi, CEO of ADNOC Logistics & Services, said the deal showed his company’s focus on maximising value from its existing assets, and that it was growing its global footprint.
- Reuters with additional editing by Jim Pollard