Nebula takeover to help AG&P LNG accelerate projects in Asia: interview [Gas in Transition]
In January this year, Nebula Energy, a US-based asset manager, acquired a majority stake in LNG terminal developer AG&P LNG, a subsidiary of Singapore-based AG&P Group, for $300mn. Peter Gibson has been appointed as chairman, Sam Abdalla as vice chairman while Karthik Sathyamoorthy will continue to remain the CEO of AG&P LNG.
Sathyamoorthy believes the investment will help fast-track LNG terminal development across emerging markets in South and Southeast Asia.
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“Nebula Energy’s investment represents 80% stake in AG&P LNG, and will fast-track LNG terminal development across emerging markets in South and Southeast Asia. AGP International Holdings retains a minority stake and together with Nebula Energy, it will continue to support AG&P LNG in asset development,” Sathyamoorthy tells NGW.
Sathyamoorthy argued 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.
“Nebula Energy’s acquisition signifies a strategic investment, with the funds aimed at bolstering the development of downstream LNG / natural gas assets, including but not limited to LNG terminals and downstream gas distribution infrastructure, over the next two to three years, while overseeing and supporting AG&P LNG in operating these assets,” he said. “This uniquely positions Nebula Energy to penetrate South and Southeast Asia markets as an integrated energy company that is present across the entire LNG downstream value chain.”
Sathyamoorthy said that Nebula Energy’s operations, spanning LNG supply and midstream activities such as LNG transport, will connect with the assets being developed and operated by AG&P LNG.
“AG&P LNG facilitates Nebula Energy’s access to crucial markets by advancing the development of LNG terminals and downstream natural gas infrastructure. Nebula Energy’s operations, spanning LNG supply and midstream activities such as LNG transport, will intricately connect with the assets being developed and operated by AG&P LNG,” he said.
“Together, Nebula Energy and AG&P LNG provide a holistic solution, offering integrated and reliable LNG supply to customers through a unified commercial and technical approach to enable energy transition in the emerging and fast-growing markets in south and southeast Asia,” Sathyamoorthy added.
AG&P LNG has now become an independent subsidiary of Nebula Energy with offices in the UAE, Singapore, India, Vietnam, and Indonesia.
Six LNG import terminals under development
AG&P LNG has a total of six LNG terminals under development. 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.
The PHLNG terminal serves the 2.5 GW power plants of San Miguel Global Power with additional demand of about 1.8mn tonnes/year from upcoming power plants in Ilijan. In addition, AG&P plans to roll out and/or support a network of compressed natural gas (CNG) stations to service transport demand as well as service demand from the industrial and domestic sectors with identified partners in the country.
In February this year, AG&P LNG acquired a 49% stake in the 3mn tonnes/year Cai Mep LNG import terminal in Vũng Tàu district, Vietnam. 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. It has pipeline connectivity to Vietnam's largest power generation complex, the Phu My industrial zone, boasting a gas-fired capacity of 3.9 GW.
The Cai Mep LNG terminal features three onshore tanks with a total LNG storage capacity of 220,000 m3 and break-bulk capabilities, allowing for the reloading of LNG into smaller vessels. Additionally, the terminal has 14 bays for compressed natural gas (CNG) and LNG truck-loading, providing access to LNG through multiple highways connecting to nearby demand centers.
“The six LNG terminals will collectively hold a capacity of 25mn tonnes/year, with one located in India. These projects, while confidential in nature, are currently in advanced stages,” Sathyamoorthy said.
Nebula Energy sets up shipowner
Nebula Energy is expanding its presence in the LNG sector by establishing Nebula Energy Shipping, a ship-owning company. This new entity will own and operate all marine assets, providing transportation services to support the expanding demand generated by Nebula Energy's LNG business.
“The company will provide efficient and secure transportation services to support the expanding demand of our LNG business. We look forward to sharing more details in due course,” Sathyamoorthy.
Outlook for LNG remains optimistic
AG&P LNG believes that despite the growing emphasis on renewable energy and decarbonisation, the outlook for LNG remains optimistic, with LNG continuing to play a vital role in the global energy landscape.
“There is a great increase in both LNG exports and demand for clean competitive fuel coming in the next few years. Anticipated oversupply of LNG is projected until 2030, driven by new facilities coming online in the US and Qatar. Nebula Energy and AG&P LNG aim to bridge the surge in gas supply and excess capacity with long-term offtake agreements, particularly in high-growth markets, which will contribute significantly to balance the LNG supply-demand landscape,” Sathyamoorthy said.