Demand aggregation can release full potential of LNG in Asia

Demand aggregation can release full potential of LNG in Asia

Demand aggregation can unlock the potential and market of liquefied natural gas (LNG) and displace fuel in off-grid locations in Asia, the Atlantic, Gulf, and Pacific Company (AG&P) said.

The company said that liquid-fueled power plants remain the key driver for growing has demand in the region. However, these power plants are usually remote and too small to serve on a standalone basis, particularly in the Philippines and Indonesia.

AG&P said that aggregating downstream demand in off-grid areas can address the challenge. This way the minimum throughput required to unlock new gas-to-power markets can be achieved.

It is also pushing for the development of the missing LNG supply chain infrastructure in off-grid areas through an integrated, end-to-end solution from sourcing to last mile delivery, making it possible and viable for customers to switch to LNG.

“Most liquid-fueled power plants are remotely located and cut-off from the main grid. Leveraging our standardized designs and modular approach to building LNG terminals, AG&P has created a solution that not only eliminates expensive, bespoke engineering costs, but significantly reduces construction time,” Abhilesh Gupta, AG&P’s Global Chief Financial Officer & Commercial Head, said.

The company is banking on a business model that would bring LNG design or engineering, innovative technology, manufacturing, project management, local marketing and operations under one platform.

“We can now offer off-grid areas speed of LNG infrastructure development, access to new and diverse gas supply options, cost-efficiency, increasing price competitiveness and flexibility to support the expansion of renewables in the power mix,” Gupta said.

AG&P is developing integrated LNG-fired gas-to-power opportunities in South Asia, America, and Africa while establishing modular components in its Philippine based facilities.

It anticipates that these developments can bring significant benefits to the Philippines by means of local employment, logistics management, yard expansion and management support.

AG&P sees the Philippines to be a regional hub for modular LNG infrastructure construction.

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