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The maritime logistics arm of state oil firm Abu Dhabi National Oil Company (ADNOC) and Singapore-based Atlantic, Gulf and Pacific (AG&P) have signed a charter agreement to use a liquefied natural gas (LNG) carrier as a floating storage unit in India.

The LNG carrier is owned by ADNOC Logistics & Services (ADNOC L&S). It will be used at AG&P's LNG import terminal in India which will be commissioned in the second half of 2024, according to a statement by AG&P on Wednesday.

The agreement is valid for 11 years with the option of a four-year extension, and is the third agreement signed between the two companies for a floating storage unit lease in India and the Philippines.

The statement added that an AG&P subsidiary called GAS Entec would convert the LNG carrier to a floating storage unit, while its operations and maintenance will be undertaken by ADNOC L&S.

The floating storage unit will be moored alongside a regasification unit, and the integrated terminal will have an initial capacity of 5 million tons per annum (mtpa).

An official at AG&P said earlier in December that the company aimed to set up its first LNG terminal in India by the end of 2024.