AG&P LNG, BKLS sign pact to supply spot LNG cargo to China

AG&P LNG, a unit of US-based Nebula Energy, and Singapore’s BK LNG Solution (BKLS) have signed an agreement to supply spot cargo to China, the company announced on July 12.

Earlier this year in April, BKLS signed an agreement with Huaying International Energy Trading to jointly secure LNG from the market to supply Huaying LNG terminal. The cargo will be delivered by the end of August 2024.

In addition to the spot cargo transaction, AG&P LNG and BKLS have agreed to collaborate on small-scale LNG initiatives, utilising the terminal at Cai Mep, Vietnam, for breakbulk into China using small LNG carriers and ISO containers.

AG&P LNG acquired a 49% stake in the 3mn tonnes/year Cai Mep LNG import terminal in Vũng Tàu district, Vietnam, in March this year. The $500mn terminal, which can be expanded to 6mn tonnes/year, has been developed by Hai Linh Company and is fully constructed. It is one of the only two existing LNG terminals in Vietnam and is expecting start-up in Q3 2024.

"We look forward to advancing our collaboration with BKLS beyond the first spot cargo transaction," said Karthik Sathyamoorthy, CEO of AG&P LNG. "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."

Earlier in January, Nebula Energy acquired a majority stake in LNG terminal developer AG&P LNG for $300mn. AG&P LNG has a total of six LNG terminals under development, boasting a proposed capacity of 25mn tonnes/year. The company operates the first LNG import and regasification terminal in the Philippines, known as the Philippines LNG (PHLNG) import terminal, situated in Batangas Bay. 

Sathyamoorthy recently told NGW that Nebula’s investment in AG&P LNG will help fast-track LNG terminal development across emerging markets in South and Southeast Asia. He said that there are substantial synergies between AG&P LNG and Nebula as the parties can combine their respective expertise in LNG terminal development, downstream, and midstream segments.