AG&P to build LNG depot for Indian firm

Local builder Atlantic, Gulf and Pacific Company (AG&P), which now focuses on LNG infrastructure solutions including LNG terminals and supply chains, and Hindustan LNG (HLNG), an LNG import terminal development company based in India, have signed a memorandum of understanding (MOU) to supply natural gas to power stations in the East Godavari region of Andhra Pradesh, India.

Under the agreement, AG&P will provide an integrated solution to deliver regasified LNG through a new LNG import terminal, which AG&P will also design and build at the port in Andhra Pradesh.

The MOU was signed at the Partnership Summit 2017 organized by Confederation of Indian Industry (CII), which was witnessed by AG&P Chairman Jose Leviste and HLNG’s Chairman C.R. Prasad.

Under the MoU, both AG&P and HLNG will launch a fully integrated solution for delivering tolled gas in India, including design, construction, financing, operations and maintenance of the new terminal.

Leviste said the landmark partnership reinforces AG&P’s strategic priority to strengthen its LNG foothold in Southeast Asia and South Asia, where there is a critical need to develop an efficient LNG supply chain to meet the growing demand for LNG for power and other industrial uses.

The partnership will ensure a reliable and low-cost supply of LNG to power producers, fertilizer plants, cold storage and other industries in Andhra Pradesh and other markets along the east coast of India.

“Like the Philippines, India has a vast coastline which makes it ideal for developing LNG import facilities to serve the growing energy demands of communities that are not connected to a gas pipeline,” Leviste said.

“In these areas, gas-fired power projects urgently need a reliable supply of LNG.

AG&P is providing a fast-track and low-cost LNG import solution which we are also developing to meet the needs of power producers and other customers in the Philippines,” he added.

In Andhra Pradesh, AG&P will design and build all the required facilities for the import terminal, including a floating storage and mooring system, regasification terminal, related utilities and the provision of tolled gas to power plants and other users.

AG&P will also carry out any necessary conversion works and, upon commissioning, ongoing operations and maintenance activities.