Abu Dhabi-based ADNOC Logistics & Services (ADNOC L&S) and Atlantic Gulf & Pacific International Holdings (AG&P) have signed a third charter agreement for the latter to use the LNG carrier, Ghasha, as a Floating Storage Unit (FSU).
The converted vessel will be used at AG&P’s LNG Import Terminal in India, which is due to be commissioned in the second half of 2024. The long term charter agreement extends initially for 11 years, with the option of a four-year extension, and follows on from two similar agreements signed between the two companies for LNG carriers to be converted to FSUs for deployment in India and the Philippines.
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “ADNOC L&S is in the midst of a major renewal project of its LNG fleet and, as we do so, we are repurposing our older vessels to extend their life, generating incremental value and new revenue streams.”
The operation and maintenance of the FSU will be undertaken by ADNOC L&S, while the conversion of vessel to an FSU will be completed by GAS Entec, an AG&P subsidiary. The result of the investment will be an integrated LNG terminal that will have an initial capacity of 5 million tonnes a year.