PHILIPPINE-BASED AG&P (Atlantic, Gulf and Pacific Co.), a global leader in infrastructure solutions for energy, natural resources and industrial sectors, and Risco Energy Group Pte. Ltd. (Risco), the energy investment company focused on building the liquefied natural gas (LNG) supply chain in Indonesia, said they are jointly forming a company they see will play a crucial role in growing AG&P’s LNG foothold in Southeast Asia.
AG&P and Risco will design, manufacture, finance, charter/lease, operate and maintain compact and midscale LNG terminals, and the supply chains that are produced from them.
Anupam Ahuja, senior vice president of AG&P in the Philippines, said the joint venture will primarily cater to the distributed energy requirements of Indonesia across LNG storage, transport, regasification, power and full-terminal solutions.
Ahuja said AG&P and Risco will eventually meet the commercial opportunities from priority LNG markets in Southeast Asia, including the Philippines.
Ahuja said the recent venture is a strategic priority for the locally based company, as it seeks to strengthen its LNG foothold across Southeast Asia, including Indonesia and the Philippines, where efficient and robust LNG supply-chain infrastructure remains unavailable.
“The JV plays a critical role in growing our LNG foothold in Southeast Asia, as the partnership brings both the LNG expertise of both AG&P and Risco. It also follows AG&P’s recent launch of its line of its ultra-shallow draft LNG carriers and shuttles, which are optimized for Indonesia’s shallow water harbors, estuaries and rivers in, for example, Sumatra, Java and Kalimantan. With Risco, we now bring to Indonesia an even greater sense of and ability to make our terminal and supply-chain solutions relevant for this tremendous market. We are privileged to work with Risco and to serve Indonesia and its exciting companies.”
The joint venture partners AG&P’s capacity to develop the full LNG supply chain for compact and midscale applications with Risco’s deep expertise in the Indonesian energy and power markets. Risco’s downstream portfolio augments last-mile capabilities via its fleet of LNG-carrying trucks, as well as with its credentials in converting heavy equipment to LNG as fuel.
AG&P will bring to the joint venture its ownership in Gas Entec, the South Korea-based engineering firm specializing in compact and midscale LNG design. AG&P, Gas Entec and Risco can design and build for charter or lease all aspects of the LNG supply chain in-house.
“Together, Risco and AG&P will deploy the necessary elements to transport LNG and see the delivery of gas to almost anywhere in Indonesia that serves our end-user clients. Such a supply chain goes a long way to making possible Indonesia’s mandate to bring electrification to everyone as quickly as possible. We are deeply honored to serve our beloved country,” said Hari Karyuliarto, Risco chairman.
“AG&P and Risco together will deliver all aspects of a comprehensive, virtual LNG pipeline capable of spanning the waters and roads of Indonesia. By making distributed energy available, affordable and sustainable, we will transform the lives of many people and continue Indonesia’s path to clean fuels,” said Ken Sauer, Risco managing director.
Ahuja said, “Indonesia is undergoing a profound transformation as a leading-edge economy in and a model for Southeast Asia. Risco, AG&P and Gas Entec working together to bring clean LNG and/or gas will ensure that Indonesia continues to enjoy a resilient, cost-effective and green future with innovative technologies and products. We are humbled to play a part.”