AG&P (Atlantic, Gulf and Pacific Co.) announced on Tuesday that it has signed a Memorandum of Understanding (MoU) with Air Liquide Global E&C Solutions to develop small-scale LNG (liquefied natural gas) infrastructure for LNG distribution across Asia.
AG&P is a leading integrator of infrastructure solutions across the LNG supply chain while Air Liquide Global is the engineering and construction arm of the Air Liquide Group.
Under the MoU, AG&P will integrate the technologies offered by Air Liquide with its expertise in planning, design 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 to end-users faster and more cost-competitive solutions that maximize a project’s value.
“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,” AG&P Chairman Jose P Leviaste, Jr. said.
As part of the MoU, AG&P and Air Liquide will begin developing standardized downstream LNG modules that optimize costs and shorten delivery time.
“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,” Domenico D’Élia, vice president and chairman, Air Liquide Engineering and Construction, said.
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. However, uptake remains slow because of a lack of the requisite infrastructure and investment to deliver reliable and sustainable supply.
Through this MoU, AG&P and Air Liquide will pioneer the development of this much-needed LNG infrastructure.