Abu Dhabi National Oil Company’s logistics and services subsidiary unit (ADNOC L&S) signed on Monday an agreement to lease a liquefied natural gas (LNG) vessel to Singapore’s Atlantic Gulf & Pacific company.
The carrier Al Khaznah will be deployed as a floating storage unit (FSU) and leased over a period of 15 years from 2021 onwards, with the option of extending it for five years, said a report from Dubai state news agency WAM.
The FSU will be held at the Karaikal LNG import terminal, which is located 320 kilometres south of the southern Indian city of Chennai.
Karaikal will become the fourth terminal in the world to use an FSU after Malta, Malaysia and Bahrain.
The agreement “maximises value from one of our maturing assets, while also providing AG&P with a flexible storage solution for their LNG terminal,” said ADNOCÂ L&S CEO Captain Abdulkareem Al Masabi.
Al Khaznah is Japanese-made and was built in 1994 with a capacity of 137,540 cubic metres of LNG.Â
ADNOC L&S was formed in 2016 after the merger of three ADNOC units and plans to add 25 vessels to its fleet over the next five years.
