Nikhil Merchant-led Swan Energy on Tuesday said it has received approval from the Gujarat Maritime Board (GMB) for construction of a Rs 5,600 crore floating LNG terminal off the Gujarat coast.
“Swan Energy Ltd, through its 100 per cent subsidiary company Swan LNG Pvt Ltd (SLPL), has received approval from Gujarat Maritime Board (GMB) for commencement of construction of LNG terminal with ancillary structures for its floating storage and re-gasification unit (FSRU) project at Jafrabad, Gujarat,” the company said in a regulatory filing.
Oil and Natural Gas Corp (ONGC), IOC and Bharat Petroleum Corp Ltd (BPCL) have agreed to take one million tonnes per annum capacity each on the 5 million tonnes a year floating LNG terminal.
Swan Energy, which is building the project in joint venture with Exmar of Belgium, is targeting 2019 for commissioning of the one jetty-moored FSRU at Jafrabad. It plans to expand the capacity to 10 million tonnes through the deployment of a second FSRU.
Merchant’s Swan Energy Ltd holds 51 per cent stake in Swan LNG Pvt Ltd - the company building the Jafrabad terminal.Exmar Marine holds 38 per cent and the remaining 11 per cent is with Gujarat State Petroleum Corporation (GSPC).
Exmar is known as a pioneer in floating regasification solutions for having introduced world’s first FSRU in 2005. “SLPL has executed an EPC contract for marine and dredging work worth Rs 2,115 crore with National Marine & Infrastructure India Pvt Ltd for carrying out the construction of LNG terminal at Jafrabad, Gujarat, to be completed within 3 years. NMIPL has already started the construction works,” it said.
The company had last year secured all necessary permits for the project and the state-owned firms agreed to hire 60 per cent capacity of the terminal on tolling basis for importing their own gas will help Swan take the final investment decision and tie-up project financing.