December 24, 2024 [Upstream]- India’s Swan Energy has lined up a floating storage and regasification unit for its proposed initial 5 million tonnes per annum liquefied natural gas import project, which will be deployed off the Jafrabad coast in Amreli district in Gujarat.
Swan on Friday said it had signed a Heads of Agreement with Singapore’s AG&P Terminals and Logistics to form a joint venture company to provide an FSRU and a floating storage unit to operate Swan’s LNG terminal.
AG&P LNG will hold the majority 51% equity stake with Swan having a 49% interest.
The two companies will also incorporate a JV company to supply LNG in India or other jurisdictions. Swan will have the majority 51% stake in this outfit.
AG&P LNG, which has its operational headquarters in the United Arab Emirates, will collaborate with Swan on the regasification of LNG and is also an option for AG&P to have equity participation in Swan Energy’s receiving terminal.
All these transactions 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 $399 million its majority 51% stake in the 5 million tpa LNG FSRU, Vasant One, to Turkey’s state-owned gas company Botas.
The FSRU, which was built by then-Hyundai Heavy Industries, was delivered to Swan four years ago and was originally destined for its phased Jafrabad 10 million tpa LNG import project in Gujarat, India.
Swan had planned to use the Vasant One for the initial phase of its greenfield Jafrabad LNG import project, however the required port facilities could not be completed in time because of the coronavirus pandemic that was followed by a typhoon, that effectively scuppered the project.
The FSRU subsequently was leased by Swan subsidiary Triumph Offshore to Botas under a one-year bareboat charter with a reported dayrate of $250,000.
The remaining 49% stake in this FSRU is held by Indian fertiliser company IFFCO (Indian Farmers Fertiliser Cooperative). It is not known whether IFFCO plans to divest its share.
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