-6.9 C
New York
Saturday, February 4, 2023

Swan LNG seeks regulator OK to start ops at Gujarat floating LNG unit

Informist, Monday, Dec 5, 2022

 

–Sources: Swan LNG seeks regulator OK for ops at floating LNG unit

–Swan LNG spent 60 bln rupees on 5 mtpa LNG unit so far

–Swan LNG has ‘use or pay’ pacts for 4.5 mtpa LNG supply

 

By Sunil Raghu

 

AHMEDABAD – Swan Energy Ltd has sought an approval from Gujarat Maritime Board to operationalise its 5 mtpa floating liquefied natural gas facility in Gujarat by February, three persons familiar with the development told Informist.

 

Swan Energy, through its subsidiary Swan LNG Pvt Ltd, has been working to develop a greenfield LNG port project at Jaffrabad in Amreli district of Gujarat since 2013. The project comprises developing LNG port facilities that utilise Floating Storage and Regassification Unit.

 

The floating unit is generally used as a fast-track solution to import LNG, as it stores and regassifies it to deliver high-pressure natural gas to the shore. It can also load small quantities of LNG on to trucks, barges or trains for regional needs.

 

Swan LNG that has already spent around 60 bln rupees on the project has seen several delays, including destruction of its breakwater facility due to two cyclones in the past, a senior state government official told Informist.

 

Swan Energy holds a 63% equity in Swan LNG, with Gujarat Maritime Board holding 15%, Gujarat State Petronet Ltd 11% and Mitsui O.S.K. Line 11% equity in the company. Mitsui is also the technical partner for the project, as per company website.

 

The key to be able to start operations at Jaffrabad LNG terminal, sources said, is to have a 2,200 mtr break water across its two jetties in place. So far, Swan LNG is said to have completed work on 1,300 mtr. Sources say Swan LNG may be able to complete the work on 200 mtr more of breakwater by January end.

 

Sources say that currently Swan’s Floating Storage Regassification Unit is dry docked in Singapore and it would take about a month-and-a-half to reach Jaffrabad. 

 

Swan Energy also has signed a ‘use or pay’ contracts with multiple state-owned oil and gas companies, including Gail India Ltd, Indian Oil Corp Ltd and Gujarat State Petronet Ltd, for 4.5 mtpa of its 5 mtpa LNG capacity.

 

It also has in place a pipeline to connect its LNG terminal to natural gas consuming market in the country.

 

Gujarat is home to three LNG terminals, with Petronet LNG Ltd having its terminal at 17.5 mtpa capacity at Dahej in South Gujarat, Hazira LNG Ltd’s 6.28 mtpa terminal at Hazira, Gujarat State Petronet Ltd led 5mtpa LNG terminal at Mundra.

 

At 1202 IST, shares of Swan Energy traded 3.1% higher at 262.80 rupees on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to [email protected]

 

© Informist Media Pvt. Ltd. 2022. All rights reserved.

Source: Cogencis

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,268FansLike
12,893FollowersFollow
742FollowersFollow
- Advertisement -

Latest Articles

Popular Articles