Swan Sells 60% of FLNG Terminal Capacity
Indian public sector oild giants Oil and Natural Gas Corp (ONGC), Indian Oil Corporation (IOC) and Bharat Petroleum Corp Ltd (BPCL) have booked 60 per cent of the capacity of Swan Energy Ltd. (SEL)'s upcoming floating Liquefied natural gas (LNG) terminal off the Gujarat coast.
ONGC, IOC and BPCL have agreed to take one million tonnes per annum capacity each on the 5 million tonnes a year floating LNG terminal planned at Jafrabad port in Gujarat, sources privy to the negotiations said.
The upcoming Nikhil Merchant-led company's floating LNG terminal at Gujarat coast, would surge the demand for LNG in western & northern region of India. The project cost is pegged at $837 million.
Gujarat State Petroleum Corp Ltd (GSPC) too is in talks to take 1.5 million tonnes capacity in the floating, storage and regasification unit (FSRU).
The companies hiring the capacity will bring their own LNG from abroad and pay Swan a tolling fee.
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).
