LNG Carrier, Ish, begins commissioning as Floating Storage Unit at AG&P's Philippines LNG Import Terminal, the first in the country
Agreement extends vessel's life by up to 15 years and will help power the Philippines with natural gas
Partnership with AG&P unlocks value and helps meet rising global demand for natural gas, an important fuel in the energy transition
Abu Dhabi, UAE - April 27, 2023
ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of ADNOC, announced today the successful berthing of LNG carrier, Ish, at the AG&P Philippines LNG (PHLNG) Import Terminal in Batangas Bay, as it continues expanding its operations globally.
Following her arrival, Ish will be commissioned as a Floating Storage Unit (FSU) at PHLNG, the first LNG import terminal in the Philippines. AG&P subsidiary, GasEntec, converted the vessel, which has a capacity of 137,500 cubic meters, to an FSU in five months. The supply, operations and maintenance of the FSU will be undertaken by ADNOC L&S.
The agreement to charter Ish to AG&P, was signed in 2022 and spans 11 years with the option to extend a further four years. This arrangement bolsters ADNOC L&S' FSU revenue stream and extends the life of the vessel while securing PHLNG's resilience of LNG supply. The agreement builds on an existing long-term charter signed between ADNOC L&S and AG&P to provide another FSU in India.
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: "Successful partnerships create new value collaboratively, and the repurposing of vessels provides a blueprint for sustainable value creation. For ADNOC L&S, this translates to extending the operational life of our vessel and unlocking new revenue streams and opportunities for growth. For AG&P, this means availing a flexible storage solution for their new LNG terminal, which will catalyze wider economic and social prosperity."
The partnership between ADNOC L&S and AG&P highlights the importance of collaboration and innovation in the energy sector. Through this agreement, the companies are working together to bring affordable and reliable energy to the Philippines and beyond, while setting new standards for safety and efficiency in the industry.
Joseph Sigelman, Chairman and CEO of AG&P said: "AG&P prizes its growing partnership with ADNOC L&S. With the Ish docking at PHLNG for the next decade or longer, AG&P is proudly set to open the first LNG terminal in the Philippines, one with both floating and, shortly, almost equal onshore tank storage, providing near 100% availability. As the first cargo of fuel originated in Abu Dhabi and with the long-term presence of the Ish, ADNOC L&S is playing a pivotal role alongside AG&P and San Miguel, our anchor customer, in bringing clean energy to the Philippines. We are proud to see the relationship between the UAE and Philippines grow in this way, with PHLNG as a prime case study."
Image by ADNOC
The vessel is part of ADNOC L&S' diverse fleet of close to 245 owned vessels and approximately 600 operated and charted vessels per year. Combined with its 1.5 million square meter logistics base in Abu Dhabi and its integrated logistics capabilities, ADNOC L&S is one of the region's largest shipping and integrated logistics companies.
Abu Dhabi National Oil Company, press release