Swan ties up with AG&P for India FSRU

The country has seven LNG import facilities -- 3 in Gujarat Dahej, Hazira and Mundra, and one each in Maharashtra Dabhol, Kerala Kochi, Tamil Nadu Ennore and Odisha Dhamra.Swan said all the transactions with AGP are subject to due diligence by both the parties and the terms and conditions for the proposed deals will be decided post due diligence.Swan in August announced plans to divest for USD 399 million its majority 51 per cent stake in the 5 million tonnes per annum LNG FSRU, Vasant One, to Turkeys state-owned gas company Botas.


PTI | New Delhi | Updated: 25-12-2024 14:04 IST | Created: 25-12-2024 14:04 IST
Swan ties up with AG&P for India FSRU
  • Country:
  • India

Business tycoon Nikhil Merchant-run Swan Energy has lined up a floating LNG receipt and regasification unit for its proposed liquefied natural gas import project at Jafrabad in Gujarat, the firm said in a regulatory filing.

Swan signed a Heads of Agreement with Singapore's AG&P Terminals and Logistics to form joint venture companies to provide a floating storage and regasification unit (FSRU) and a floating storage unit to operate the Jafrabad terminal as well as for supplying LNG.

A joint venture company (LNG supply company) will be incorporated ''for the purpose of supplying LNG in India or any other jurisdiction'', Swan said in the filing, adding it will hold 51 per cent equity stake and the balance 49 per cent equity stake shall be held by AG&P LNG.

Another joint venture company (vessel company) will be incorporated ''for the purpose of providing floating storage and regasification unit (FSRU) and floating storage unit (FSU) to operate Swan LNG Pvt Ltd's LNG Terminal.

AG&P LNG will hold a 51 per cent equity stake and Swan will hold 49 per cent equity stake in the company, it said.

AG&P LNG will also collaborate with Swan for regasification of LNG into RLNG. ''There is also an option with AG&P LNG to have equity participation in Swan Energy's LNG Terminal,'' it said.

With domestic natural gas production meeting barely half of the country's needs, the fuel in its supercooled, liquid form is imported to meet feedstock demand for generating electricity, making fertiliser and CNG sales. The country has seven LNG import facilities -- 3 in Gujarat (Dahej, Hazira and Mundra), and one each in Maharashtra (Dabhol), Kerala (Kochi), Tamil Nadu (Ennore) and Odisha (Dhamra).

Swan said all the transactions with AG&P are subject to due diligence by both the parties; and the terms and conditions for the proposed deals will be decided post due diligence.

Swan in August announced plans to divest for USD 399 million its majority 51 per cent stake in the 5 million tonnes per annum LNG FSRU, Vasant One, to Turkey's state-owned gas company Botas. The remaining 49 per cent stake is held by Indian Farmers Fertiliser Cooperative (IFFCO) but it is not known if the fertiliser company plans to divest its share.

The FSRU, which was built by then-Hyundai Heavy Industries, was delivered to Swan four years ago and was originally destined for its Jafrabad import terminal. But project timelines were delayed due to the coronavirus pandemic that was followed by a typhoon.

The FSRU subsequently was leased by Swan subsidiary Triumph Offshore to Botas under a one-year bareboat charter with a reported day rate of USD 250,000.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Give Feedback