Swan Energy’s upcoming floating LNG terminal capacity almost sold out
Swan Energy Ltd’s five-million-tonne floating LNG terminal coming up off the Gujarat coast is almost sold out with state-owned Oil and Natural Gas Corp, Indian Oil Corporation and Bharat Petroleum Corp Ltd – booking 60 per cent of the capacity.
The Nikhil Merchant-led firm has got the much-needed backing to complete the Rs5,600 crore project with ONGC, IOC and BPCL agreeing to take one million tonnes per annum capacity each on the 5 million tonnes annual capacity.
Besides, Gujarat State Petroleum Corp Ltd (GSPC), which holds an 11-per cent stake in the ‘floating, storage and regasification unit’ (FSRU), is in talks for a 1.5 million tonne capacity, reports quoting sources close to the development said.
The project, being built in joint venture with Exmar of Belgium, is being built at Jafrabad port in Gujarat.
The state-owned firms have agreed to hiring the capacity on a trolling basis for importing their own gas will help Swan take the final investment decision and tie-up project financing.
Swan has already secured all necessary permits for the project and the company is targeting 2019 for commissioning of the one jetty-moored FSRU. It plans to expand the capacity to 10 million tonnes through the deployment of a second FSRU.
Swan Energy holds 51-per cent stake in Swan LNG Pvt Ltd – the company building the Jafrabad terminal while Exmar Marine holds 38 per cent and the remaining 11 per cent by Gujarat State Petroleum Corporation (GSPC).
Exmar, a pioneer in floating regasification solutions, introduced the world’s first FSRU in 2005.
The West Cost already hosts LNG terminals at Dahej and Mundra in Gujarat, Dabhol in Maharashtra and Kochi in Kerala.
Petronet LNG Ltd owns and operates a 10 million tonnes a year liquefied natural gas (LNG) import terminal at Dahej in Gujarat, in which ONGC and IOC own 12.5 per cent stake each. This terminal is being expanded to 15 million tonnes by next month.
Petronet, which leases out expanded capacity at the Dahej terminal to third parties, also has a 5 million tonnes a year LNG import facility at Kochi, also on the west coast.
GSPC is building its own LNG terminal in joint venture with Adani Group at Mundra in Gujarat, which is expected to be commissioned by 2017.
Also on the west coast is an under-utilised 5 million tonnes Dabhol LNG import terminal, operated by state gas utility GAIL India Ltd.
https://www.domain-b.com/industry/oil_gas/20160818_capacity.html