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UAE’s ADNOC to transform LNG carrier into import terminal in Philippines

ADNOC Logistics & Services, a unit of the UAE’s biggest energy company, will transform an LNG carrier into an import terminal in the Philippines as it seeks to boost its income.

ADNOC L&S and Atlantic Gulf & Pacific International Holdings, or AG&P, signed an agreement to use the LNG carrier Ish as a floating storage facility, ADNOC said in a Feb. 23 statement. The integrated offshore/onshore import terminal will have an initial capacity of 5 million mt/year.

“Under the terms of the agreement, 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 statement said. “The agreement, which is valid for 11 years with the option of extension by 4 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.”

New revenue stream

Ish is part of a fleet of eight LNG vessels operated by ADNOC L&S and is currently under contract to ADNOC LNG, in which the parent company has a 70% stake.

Other stakeholders in ADNOC LNG are Mitsui & Co (15%), BP (10%) and Total (5%). After the end of the 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.

“This agreement builds on our existing partnership with AG&P and demonstrates our continued focus on maximizing value from our assets,” Abdulkareem al-Masabi, CEO of ADNOC L&S said.

The Ish, which is part of ADNOC L&S’ fleet of more than 200 ships, has a capacity of 137,315 cu m of LNG.
Source: Platts

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