AG&P has formed a joint venture with Risco Energy Group to support new LNG-import and distribution ventures in Indonesia, and in the Philippines, India and other emerging buyer markets in South East Asia.
Philippines-based AG&P and Indonesia-based investor Risco will design, manufacture, finance, charter/lease, operate and maintain small and mid-scale LNG terminals and supporting supply chains. The two firms say the venture provides a low-risk market entry point and more certain financial returns, based on payments from the counterparty that will lease or charter the assets.
The venture aims to ease the burden of sizeable up-front investment to design, manufacture and maintain small and mid-scale LNG terminals, optimising the supply chain during construction and operations to cut costs and speed time to market.
“This creates a win-win for customers, counterparties and the industry as it makes the LNG market accessible for fresh players who would otherwise not be able to raise the necessary capital for infrastructure development,” AG&P said in a statement.
Risco is an energy investment firm developing LNG-supply ventures in Indonesia. It has a fleet of LNG-carrying trucks and a track record converting heavy equipment to LNG as fuel. AG&P sees the partnership as an opportunity for Gas Entec, the South Korea-based engineering firm in which it recently bought a stake.
“AG&P and Risco together deliver all aspects of a comprehensive, virtual LNG pipeline capable of spanning the waters and roads of Indonesia,” says Risco managing director Ken Sauer. “By making distributed energy available, affordable and sustainable, we will transform the lives of many people and continue Indonesia’s path to clean fuels.”