AG&P to build small LNG carriers in Batangas

Posted on November 03, 2016
http://www.bworldonline.com/content.php?section=Corporate&title=ag&38p-to-build-small-lng-carriers-in-batangas&id=135807

AG&P (Atlantic, Gulf and Pacific Company) will build small liquefied natural gas (LNG) carriers at a manufacturing facility in the Philippines.

Christine Jones, AG&P’s vice-president for marketing and communications, told BusinessWorld in an e-mail interview that there has been a “significant interest” among developers, ship owners, and energy companies since the firm launched its first small LNG carrier (LNGC) with ultra-shallow draft in Singapore last week.To maximize this demand, AG&P would construct LNGC with ultra-shallow draft in its manufacturing site in Batangas. Each one would take 16 months to finish the vessel, which according to Ms. Jones, takes 6 months less than the average time used to build vessels.

“We expect developers and power companies in Indonesia to be the first to integrate these vessels into their supply chains. Philippines, India and Myanmar are also expected to be early adopters. There is also considerable interest from European companies,” she said in an e-mail interview.

“They are particularly interested in the flexibility and versatility of our workhorse vessel because it can enter shallow waters, such as rivers and harbors with depth of just two meters, and ply near shore or travel to offshore assets to receive or deliver LNG cargos. This makes it suitable for a variety of projects and locations.”

LNG is a natural gas that is cooled to a certain degree in order to reach a liquid state. It is used in residential, commercial, and industrial sectors for various purposes such as heating, electricity generation, fuel consumption for heavy-duty vehicles, among others.

Ms. Jones said this could also help the Philippines increase the use of LNG for energy consumption, citing how the market is restricted to large players who can afford bigger shipments.

AG&P said the vessels would be made using standardized designs with additional specifications requested by each customer.

“This is what allows them to be built so quickly and cost effectively, as time and investment is saved on design, engineering, procurement and building. There is no limit to the number that may be built. AG&P will also be offering them as build-to-lease assets, enabling smaller players to enter the market,” she noted.

AG&P said that the vessel would be an “ideal” solution to transportation needs of countries such as the Philippines.

“The LNGC is especially an ideal LNG transportation solution for archipelagic countries such as the Philippines, where some regions remain either inaccessible or too small to be feasibly served by the current power supply model,” it said.