AG&P, ADNOC L&S sign agreement for the long-term charter of a FSU
WAREHOUSING & LOGISTICS

AG&P, ADNOC L&S sign agreement for the long-term charter of a FSU

Atlantic Gulf & Pacific (AG&P), the global downstream gas and LNG logistics company, and ADNOC Logistics and Services (ADNOC L&S) have signed an agreement for the conversion, supply, operations and maintenance of a Floating Storage Unit (FSU) at AG&P’s new LNG import facility located within Karaikal Port in Puducherry, India. The 137,756 cu m FSU owned by ADNOC L&S is being chartered for 15 years through an innovative commercial model enabling supply to be scaled to match demand. Construction on the terminal will begin in Q1 2020 with commercial operations expected to commence before the end of 2021.
 
The Karaikal FSU will be only the fourth FSU-based LNG import terminal in the world, after those in Malta, Malaysia and Bahrain. ADNOC L&S will provide a Japan-built, Moss-type containment vessel as FSU for the project from its fleet of eight LNG ships.
 
“This agreement with Atlantic Gulf & Pacific is significant for ADNOC Logistics & Services in a number of ways,” said Abdulkareem Al Masabi, CEO, ADNOC L&S. “Firstly, it 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. It is also an important agreement because it provides AG&P with additional storage flexibility for their LNG terminal as well as giving us the chance to generate more value from one of our historical assets which is coming to the end of its current contract.”
 
Owned and operated by AG&P, the LNG import facility at the Karaikal Port will have initial capacity of 1 million tonne per annum (mtpa) which will be expanded to 3 mtpa in the medium term as demand increases. The terminal will serve domestic, industrial and commercial customers within a 500 km radius, including the heavily industrialised region of central Tamil Nadu, which has major manufacturing clusters for the fertilizer, cement, steel, textile, leather, sugar and garment industries. In addition, it will serve gas-fired power plants as well as AG&P’s own extensive city gas distribution network across South India.
 
Karthik Sathyamoorthy, President, AG&P Terminals & Logistics, said: “We are privileged to work with ADNOC L&S, one of the world’s leaders in LNG logistics with an extensive, state-of-the-art, highly-maintained fleet. 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 re-gasification terminals for smaller volumes. AG&P and ADNOC L&S are excited to reach this critical goal for our customers.”

Atlantic Gulf & Pacific (AG&P), the global downstream gas and LNG logistics company, and ADNOC Logistics and Services (ADNOC L&S) have signed an agreement for the conversion, supply, operations and maintenance of a Floating Storage Unit (FSU) at AG&P’s new LNG import facility located within Karaikal Port in Puducherry, India. The 137,756 cu m FSU owned by ADNOC L&S is being chartered for 15 years through an innovative commercial model enabling supply to be scaled to match demand. Construction on the terminal will begin in Q1 2020 with commercial operations expected to commence before the end of 2021. The Karaikal FSU will be only the fourth FSU-based LNG import terminal in the world, after those in Malta, Malaysia and Bahrain. ADNOC L&S will provide a Japan-built, Moss-type containment vessel as FSU for the project from its fleet of eight LNG ships. “This agreement with Atlantic Gulf & Pacific is significant for ADNOC Logistics & Services in a number of ways,” said Abdulkareem Al Masabi, CEO, ADNOC L&S. “Firstly, it 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. It is also an important agreement because it provides AG&P with additional storage flexibility for their LNG terminal as well as giving us the chance to generate more value from one of our historical assets which is coming to the end of its current contract.” Owned and operated by AG&P, the LNG import facility at the Karaikal Port will have initial capacity of 1 million tonne per annum (mtpa) which will be expanded to 3 mtpa in the medium term as demand increases. The terminal will serve domestic, industrial and commercial customers within a 500 km radius, including the heavily industrialised region of central Tamil Nadu, which has major manufacturing clusters for the fertilizer, cement, steel, textile, leather, sugar and garment industries. In addition, it will serve gas-fired power plants as well as AG&P’s own extensive city gas distribution network across South India. Karthik Sathyamoorthy, President, AG&P Terminals & Logistics, said: “We are privileged to work with ADNOC L&S, one of the world’s leaders in LNG logistics with an extensive, state-of-the-art, highly-maintained fleet. 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 re-gasification terminals for smaller volumes. AG&P and ADNOC L&S are excited to reach this critical goal for our customers.”

Next Story
Real Estate

MAIA Estates Launches ‘The Seven’ in South Bengaluru

MAIA Estates has recently announced the launch of ‘The Seven’, a premium residential development in Basavanagudi, South Bengaluru. The project comprises twin towers across a 3.67-acre site, offering 128 exclusive 4 BHK+ residences spread over 36 storeys, with a total saleable area of around 6,00,000 sq ft. Completion is targeted by 2029.Developed under a joint development agreement, the project is backed by Rs 1.2 billion in institutional funding from Arnya Real Estate Fund – Debt. The launch marks the company’s entry into South Bengaluru, a micro-market characterised by limited premiu..

Next Story
Infrastructure Energy

Hindustan Zinc Reports Record FY26 Production

Hindustan Zinc Limited recently reported its production performance for the fourth quarter and financial year ended March 31, 2026, recording its highest-ever output across key segments.Mined metal production reached a record 315 kt in 4QFY26 and 1,114 kt for FY26, supported by higher ore output and improved grades. Refined metal output stood at 282 kt for the quarter, driven by capacity enhancements at Chanderiya and Dariba, alongside improved operational efficiency.Refined zinc production rose to 851 kt in FY26, up 3 per cent year-on-year, supported by debottlenecking projects and expanded r..

Next Story
Infrastructure Urban

CFI Appoints New National Council for FY27 and FY28

The Construction Federation of India (CFI) has announced its newly elected National Council and office bearers for a two-year term covering FY27 and FY28. M. V. Satish, Advisor to CMD and Lead Ambassador for Middle East, L&T, has been elected President; Priti Patel, Chief Strategy & Growth Officer, Tata Projects, has been appointed Vice President; and Ajit Bhate, Managing Director, Precast India Infrastructures, has taken charge as Treasurer.The newly formed National Council brings together senior leaders from major EPC and infrastructure companies, reflecting CFI’s continued focus o..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement