AG&P bags LNG project in Russia
agp.ph
MANILA, Philippines–Industrial process outsourcing firm Atlantic Gulf & Pacific Co. of Manila (AG&P) has bagged a deal to manufacture modular components for the Yamal liquefied natural gas (LNG) project in Russia’s Yamal Peninsula—one of the biggest LNG fields in the world.
The transaction is worth between $350 million and $400 million, according to sources familiar with the project.
The deal calls for AG&P to supply “critical process modules” to the Yamgaz consortium, which is building the LNG plant in the Russian Arctic region.
AG&P was awarded the deal after what was described as a “competitive tender process.”
The Philippine-based company was selected for its “high capacity, advanced modular construction capabilities, stringent safety and quality standards and previous track record of successful project delivery,” according to one source.
Under the deal, AG&P will manufacture the LNG modules at its Batangas facility and transport them to Russia for final assembly. This modular process is expected to speed up the project’s construction time.
Thousands of jobs are expected to be created at AG&P’s facility due to the Yamal LNG project.
Company officials declined to disclose specific details pending the deal’s official announcement.
Total investments in Yamal LNG by all its partners are estimated to top $20 billion. Upon completion in 2020, Russia will double its share of the global LNG market from the current estimate of 4.5 percent.
The LNG plant will have an annual production capacity of 16.5 million tons.
The company operates in the Philippines from two construction yards totaling an area of 150 hectares, making it the largest modularization facility in the region.
The fortunes of the then moribund AG&P were revived in 2010 after it was acquired by the group of US entrepreneur Joseph Sigelman. The company is now chaired by businessman and former petroleum executive Cesar Buenaventura and run by managing director Augusto Gan.
The Russian contract followed AG&P’s deployment of the world’s first hydro deck to service the biggest-ever construction project in Australia’s Northern Territory.
The hydro deck–designed and operated by AG&P ALE Ventures Pty Ltd.–an Australian-based consortium, is a facility capable of offloading large, fabricated modules or equipment onto project sites regardless of extreme tidal variations.
