Swan Energy to Invest $845 mln for FSRU Terminal

The joint venture project by Swan Energy Limited (SEL) and its Belgium partner Exmar Marine N.V. will be the country's first jetty-moored FSRU.  Swan Energy holds 51 per cent stake in the JV company, Swan LNG Pvt Ltd, while Exmar Marine and Gujarat-government's Gujarat State Petroleum Corporation (GSPC) hold 38 per cent and 11 per cent respectively.

To be commissioned in January 2019, the Jafrabad LNG Port will see a 5 MTPA receiving terminal, with one jetty-moored Floating, Storage and Regasification Unit (FSRU), wherein the two partners have expressed intention to expand the terminal to 10 MTPA, through the deployment of a second FSRU at a project cost of $300 million (Rs 2,000 crore approximately).

While 20 per cent of the funding will be made through equity, the company will raise the remaining 80 per cent funds through a mix of qualified institutional placements (QIPs) and Foreign Currency Convertible Bonds (FCCBs) to meet the funding requirement.

"The funds will be raised in Swan Energy and then invested in Swan LNG. We have secured all necessary approvals and permits for the project. We will soon begin negotiations with EPC contractors for developing the port," said Nikhil Merchant, Managing Director of Swan Energy Limited.