ARKANSAS, January 31 (Future Headlines)- Atlantic Gulf & Pacific Company (AG&P) LNG, buoyed by an 80% stake purchase and a $300 million investment from U.S. firm Nebula Energy, is set to expedite its plans for six liquefied natural gas (LNG) terminals in South and Southeast Asia. AG&P LNG, formerly wholly-owned by AG&P Group, is targeting a final investment decision (FID) within the next one-to-two years. These projects, with a combined capacity of 25 million tons per annum (mtpa), aim to address the declining domestic gas supply in countries such as the Philippines, Vietnam, Indonesia, and India.
The move follows Nebula Energy’s significant investment, providing AG&P LNG with the financial backing to accelerate its LNG terminal development plans. AG&P LNG’s chief executive, Karthik Sathyamoorthly, highlighted the importance of LNG as a critical component to sustain gas-fired power plants in the face of diminishing domestic gas resources across Southeast Asia. With South and Southeast Asian markets in focus, the company aims to diversify its LNG infrastructure across these regions.
One of the key projects in AG&P LNG’s portfolio is the Karaikal LNG terminal in India, which will play a crucial role in meeting the energy demands of the region. Sathyamoorthly did not disclose specific details about the locations of the other terminals but emphasized that the projects are at an advanced stage. AG&P LNG aims to enhance its LNG import capacity to address the energy needs of the growing economies in the target markets.
The development plans include the expansion of AG&P LNG’s existing facility, PHLNG, in Batangas Bay, south of Manila, Philippines. PHLNG was the first among seven LNG terminal projects approved by the Philippine government. The expansion and addition of new LNG terminals align with the global trend of considering natural gas as a transitional fuel during the shift to lower-carbon energy sources.
While uncertainties linger due to geopolitical events, the easing of LNG prices could potentially boost demand, particularly in emerging markets like South and Southeast Asia. Spot prices for Asian LNG have witnessed a decline since November, falling below $10 per million British thermal units (mmBtu) this month. AG&P LNG’s strategic move positions it to capitalize on the evolving energy landscape and contribute to meeting the energy needs of the target regions.
Reporting by Moe Khaled; Editing by Sarah White