AG&P LNG, a company specialising in LNG terminals and downstream infrastructure, has signed an agreement with Singapore-based BK LNG Solution (BKLS) to introduce the first spot cargo of LNG into China.
This collaboration aims to meet growing demand in the Chinese LNG import market by utilising AG&P LNG’s global sourcing expertise.
The companies also agreed to work together on small-scale LNG initiatives, leveraging the Cai Mep LNG Terminal in Vietnam for breakbulk into China.
AG&P LNG recently acquired a 49% stake in the terminal, which has a capacity of three million tonnes per annum (mtpa) and can be expanded to 6mtpa.
The terminal, situated in the Vũng Tàu district of South Vietnam, is a significant regional asset valued at $500m.
Through the alliance, AG&P LNG and BKLS aim to enter the Chinese market, which is expected to undergo significant growth in LNG imports.
AG&P LNG CEO Karthik Sathyamoorthy said: “Together, we aim to set new benchmarks in delivering reliable and sustainable LNG solutions to support China’s growing energy demands. Diversifying energy sources with LNG enhances China’s energy security and supports its economic growth.
“Our collaboration on small-scale LNG initiatives not only expands LNG distribution capabilities but also ensures quicker, more responsive delivery of LNG, crucial for meeting increasing demand across China.”
BK LNG Solution president Henry Kim said: “We are pleased to announce the signing ceremony where we formalised our agreement to bring our first spot cargo into China. This collaboration demonstrates our dedication to providing innovative and diversified LNG solutions to meet the dynamic needs of the Chinese LNG market.”
Earlier in March, AG&P LNG, in consortium with other industry players, secured a 20-year contract from PLN Energi Primer Indonesia (PLN EPI) for LNG infrastructure development.
The consortium, including AG&P Indonesia, Suasa Benua Sukses, and KPM Oil and Gas, will form a joint venture with PLN EPI to design, finance, construct, own and operate LNG import terminal infrastructure and downstream logistics in the Sulawesi-Maluku cluster in Indonesia.
This project will include an LNG carrier, a floating storage and regasification unit and multiple onshore regasification sites.
“AG&P LNG and BKLS sign deal to bring LNG spot cargo into China ” was originally created and published by Offshore Technology, a GlobalData owned brand.
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