- Adani Ports won a 10-year marine services contract for Argentina's first LNG export
- The $70 million deal is through Adani's subsidiary and Argentina's Meridian Group
- Services include tugboat operations, offshore logistics, and crew transfer support
Adani Ports and Special Economic Zone Ltd. has bagged a 10-year marine services contract for Argentina's first liquefied natural gas export. This marks the company's entry into the South American region, thus adding a new geography to its fast-expanding international marine services portfolio.
The contract has been awarded to APSEZ's step-down subsidiary, The Adani Harbour International FZCO, through a consortium with Argentina-based Meridian Group. The estimated deal value stands at $70 million, which roughly translates to Rs 666 crore.
As part of the agreement, the Adani Group-Meridian consortium will offer end-to-end marine services for the Southern Energy FLNG project, including tugboat operations for LNG carriers, offshore logistics and supply support, as well as crew transfer services.
Their projects will be backed by four high-end tugboats, one anchor handling tug supply vessel and one crew boat. It will be executed through Meridian Transportes Maritimos S.A, a 51:49 joint venture between Adani Harbour International FZCO and the Meridian Group.
In its first phase, the project is expected to produce 2.45 million tonnes of LNG annually - approximately 28 cargoes per year - with commercial operations slated to begin in September 2027. Argentina has agreements in place to supply up to 10 million tonnes of LNG annually to India from 2027.
The contract win in Argentina comes as brokerages maintain a constructive view on Adani Ports. Nomura has a 'buy' rating on the stock with a target price of Rs 1,930, projecting a 19% Ebitda CAGR over FY26-28. The marine segment, in particular, is expected to record a 29% Ebitda CAGR over the same period.
The brokerage firm notes that Adani Ports commands roughly 27% of India's total port volumes, with cargo handling capacity of 653 million tonnes per annum.
ALSO READ: Adani Ports Target Price Hiked By Nomura As Record Cargo Volumes In May
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