Ahmedabad: Moving closer to its plans of setting up the country’s first FSRU (floating, storage and re-gasification unit) based LNG port near Jafrabad in Gujarat, Swan Energy Ltd has recently acquired FSRU named Vasant 1.
The FSRU, with 180,000 cubic metres of storage capacity is the first Indian-owned and Indian Flag FSRU which shall be used for storage and re-gasification of the liquified natural gas, according to a company official.
Swan Energy has recently submitted a proposal to the state government for pushing its plans by another year for completion of construction of Jafrabad Port facility.
According to Swan’s earlier plans, it aimed to complete the project by 2019.
There have been some delays in construction on account of Vaayu cyclone last year and Covid-19 crisis this year, said a company official. The company aims to complete the port facility and commission the FSRU at Jafrabad by 2021.
Vasant–1 vessel is a dual-purpose vehicle that can operate as LNG carrier and can switch to FSRU mode for re-gasification purposes.
“Till the time the port is built, Vasant-1 will be utilized as LNG carrier in international as well as Indian waters. Presently, it is in Malyasia,” according to the official. It will be brought to Jafrabad a little closer to commissioning of the port, he added.
Swan LNG Private Limited (SLPL), another subsidiary of Swan Energy Limited, will use the FSRU under 20 years Bare Boat Charter Agreement for the LNG-dedicated Port Project being implemented near Jafrabad, Gujarat.
The FSRU is owned by Triumph Offshore Private Limited (TOPL), a subsidiary of Swan Energy Limited with 51 per cent equity stakes and balance 49 per cent is held by Indian Farmers Fertilizers Cooperative (IFFCO) Limited.
Swan LNG Private is a fully owned special purpose vehicle set up for the project by the Nikhil Merchant-led Swan Energy which is developing the all-weather port at Jafrabad in Amreli district with a total capacity of handling 10 million tonnes per annum (MTPA) of LNG.
The project cost has been downsized from Rs 5,900 crore to about Rs 4,000 crore, said sources.
Swan Energy Limited is the lead promoter for the project with 63 per cent equity stake and 11 per cent equity held by FSRU Venture India One Pvt Ltd, the Indian subsidiary company of Mitsui OSK Lines, Japan which is also the technical partner for the project. The other shareholders in the project include Gujarat Maritime Board with 15 per cent and Gujarat State Petronet Ltd holding 11 per cent equity stake.
The port project by Swan LNG Pvt Ltd is based on ‘Tolling Model’ where the company has entered into firm long-term re-gasification agreements for 90 per cent capacity booking on “Use or Pay” basis with the PSU oil and gas companies including GSPC (1.5 MMTPA), BPCL, IOCL and ONGC (1 MMTPA each).