Air Liquide MoU for Asian LNG Infrastructure

22.03.2017 -

Air Liquide Global E&C Solutions, engineering and construction arm of French industrial gases powerhouse Air Liquide, has signed a Memorandum of Understanding (MoU) with Philippines-based Atlantic, Gulf and Pacific Company (AG&P), an integrator of infrastructure solutions across the LNG supply chain, to develop small-scale LNG infrastructure for distribution across Asia. The MOU also extends to innovative Boil-off Gas (BOG) management systems, designed to eliminate the need for investment in BOG compressors while ensuring that no gas is vented or flared.

Combining their respective strengths, the companies said, will allow them to deliver fully integrated and cost-optimized solutions for LNG distribution with a focus on liquefaction, transportation and downstream infrastructure. AG&P said it will leverage Air Liquide’s expertise in LNG infrastructure modules, for example, to build technologically-advanced blocks that can plug into any part of the gas supply chain to deliver faster and more cost-competitive solutions to end-users.

AG&P claims to be only one of three companies to have a global technical and licensing agreement for membrane tank design from French specialist GTT.  It also owns a major stake in Gas Entec, a leading Korea-based engineering firm, as well as a joint venture with Risco Energy Group of Indonesia, and is building an LNG terminal in East India with Hindustan LNG.

Working with AG&P, the Air Liquide subsidiary said it will be able to meet the dynamic requirements of customers in Asia’s vast regions where small quantities of LNG need to be delivered efficiently to end-users scattered across long distances. It said uptake of gas remains slow due to the absence of the requisite infrastructure and the investment to guarantee reliable and sustainable supply. The MoU partners estimate that $70-80 billion needs to be invested in gas infrastructure over the next decade.

Separately, Air Liquide has said it is ceasing its activity in the self-proclaimed Donetsk People’s Republic, which is establishing administrative control over some Ukrainian companies including Air Liquide Yenakievo, its local subsidiary. The French gases producer owns an oxygen production unit dedicated to supply one steel customer in the region, but said this activity is not significant, given the size of the its activities in Europe.