Atlantic, Gulf and Pacific Company (AG&P) has signed a Memorandum of Understanding (MoU) with Air Liquide Global E&C Solutions, the engineering and construction arm of the Air Liquide Group, to develop small-scale LNG infrastructure for LNG distribution across Asia.
By combining their respective strengths, AG&P and Air Liquide will be able to offer unique, fully integrated and cost-optimized solutions for LNG distribution with a focus on liquefaction, transportation and downstream infrastructure to deliver LNG to end users seeking LNG for power, shipping, ground transport and other industrial applications.
Under the MoU, AG&P will integrate the technologies offered by Air Liquide with its expertise in planning, designing engineering, financing and operating LNG infrastructure modules to build technologically-advanced blocks that can plug into any part of the LNG supply chain. This will deliver end-users faster and more cost-competitive solutions that maximize a project’s value.
Commenting on the strategic alliance, AG&P’s Chairman, Mr. Jose P Leviste (Jr.), said, “This milestone agreement with Air Liquide will enable the integration of downstream LNG infrastructure, including small scale regasification terminals, distribution hubs, truck loading stations and boil-off gas handling systems into AG&P’s LNG supply network for rapid delivery of tolled gas to last-mile customers. Our aim is to streamline Air Liquide's know-how in gas processing technology and patents with AG&P's experience in design, engineering and construction to bring the most competitive solutions to customers across Asia. We offer unique products for both onshore and offshore applications.”
As part of this MoU, AG&P and Air Liquide will begin developing standardized downstream LNG modules (some as skids) that optimize costs and shorten delivery time. The MOU as well covers innovative Boil-off Gas (BOG) management systems eliminating the need for investment in BOG compressors, while ensuring that no gas is vented or flared, bringing environmental and economic benefits to the customer.
AG&P has a long and successful track record as an integrator of pragmatic solutions for the oil and gas industry with specific expertise in LNG. It is only one of three companies globally to have a global technical and licensing agreement for membrane tank design from the French giant, GTT. In addition, AG&P owns a major stake in Gas Entec, the leading Korea-based engineering firm. AG&P further has entered in a joint venture with Risco Energy Group of Indonesia. Recently, AG&P has announced its development of an LNG terminal in East India with Hindustan LNG. AG&P also co-owns and operates the Hydro Deck, a unique giant mobile port, through a joint venture with global heavy lift and logistics leader, ALE.
Domenico D’Élia, Vice President and Chairman, Air Liquide Engineering and Construction said, “We chose AG&P to be our partner because of their reputation for innovation, safety record and fast delivery.
Through this agreement, we will be able to meet the dynamic requirements of customers in the vast region of Asia where small quantities of LNG need to be delivered efficiently to end-users scattered across vast distances.”
The demand for LNG continues to grow worldwide as countries seek to replace oil and heavy fuel oil with LNG as a cleaner and cheaper fuel for power generation, shipping, ground transport and industrial use. However, uptake remains slow because of a lack of the requisite infrastructure and investment to deliver reliable and sustainable supply. Much of Asia requires massive development of assets to bring the gas from its source to demand centers dispersed over vast geographies where it is estimated that $70 to $80 billion USD needs to be invested in gas infrastructure over the next decade. Through this MoU, AG&P and Air Liquide will pioneer the development of this much-needed LNG infrastructure.