The steam-turbine-driven Ghasha will be converted for use as a floating storage unit (FSU) (source: ADNOC L&S)
Two separate LNG carrier charter agreements, one with Mitsui OSK Lines (MOL) and the other with ADNOC Logistics & Services (ADNOC L&S), will bolster LNG imports to India
MOL and Indian state-owned GAIL signed a time charter contract for an LNG carrier newbuilding and a joint ownership of an existing LNG carrier.
MOL’s LNG newbuilding is under construction by Daewoo Shipbuilding & Marine Engineering (DSME) for delivery in 2023. It will have X-DF dual-fuel propulsion and a capacity of 174,000 m3. This would be the second LNG carrier serving GAIL, India’s largest gas utility and gas supply company. The first is the 180,000-m3GAIL Bhuwan carries LNG volumes from the US under charter to GAIL through a wholly owned MOL subsidiary from 2021. At this time, MOL and GAIL reached an agreement to share the vessel by transferring a portion of a wholly owned MOL subsidiary’s shares to GAIL.
By expanding its partnership with GAIL, MOL —one of the world’s largest LNG shipowners and managers —expects to strengthen its presence and business base in India, where energy demand is growing.
With a global LNG portfolio of around 14 mta, GAIL has emerged as one of the leading global LNG players and is actively involved in the LNG trading business in the international market.
Conversion to FSU
Meanwhile, Abu Dhabi’s ADNOC L&S and Atlantic Gulf & Pacific International Holdings (AG&P) have inked a deal for the long-term charter and conversion of the LNG carrier Ghasha to a floating storage unit (FSU).
Under the terms of the deal, Ghasha will be used at AG&P’s LNG Import Terminal in India,which will becommissioned in H2 2024. The agreement, for a term of 11 years contains an option for a four-year extension, strengthens the existing relationship between the two companies, which have previously entered two similar agreements for FSUs in India and the Philippines.
ADNOC L&S chief executive Abdulkareem Al Masabi, said: “This agreement with AG&P builds on a phenomenal period of global expansion for ADNOC L&S as we focus on growth, diversification and unlocking new revenue streams.” Added Captain Al Masabi, “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 operations and maintenance of the FSU will be undertaken by ADNOC L&S, while the conversion of the 138,000-m3, steam turbine-driven, Moss-type LNG Carrier to an FSU will be completed by GAS Entec, an AG&P subsidiary. The FSU will be moored alongside a regasification unit, manufactured by the subsidiary. The integrated terminal will have an initial capacity of 5 mta.
AG&P chairman and CEO Joseph Sigelman, said: “The ADNOC L&S FSU, plus the regasification unit, is a powerful combination for bringing gas to new markets.”
As the result of elevated pricing and weaker spot cargoes, India’s LNG imports have fallen year-on-year according to the latest data available from the country’s Petroleum Planning & Analysis Cell. Total LNG imports were 2,365 million square cubic metres (mmscm), down 16.3% yoy from the same month last year.
