MUMBAI: Indian energy company Swan Energy and Belgian shipping firm EXMAR will jointly develop and operate India’s first floating liquefied natural gas (LNG) terminal, in the western Gujarat state, Kallanish Energy learns.
The companies said last week they signed a binding agreement to work on the Jafrabad LNG port project, which will handle 5 million metric tonnes per annum (MTPA) of LNG, with a floating, storage and regasification unit (FSRU). There are plans to expand capacity to 10 MTPA, with a second terminal.
The final investment decision is expected during the first half of 2016, but EXMAR said “several financial institutions have already expressed interest in supporting the project.”
EXMAR CEO Nicolas Saverys said the company was “especially attracted by the steady progress made by Swan and its portfolio of bankable governmental counterparts,” with his company eyeing further FSRU deployment in India, due to the country’s increasing demand for clean energy.
The Belgian shipper added agreements are in place for an initial 4.5 (MTPA) of regasification capacity for a 20-year period. Negotiations are ongoing with Indian Oil Corporation Ltd. (IOCL), Oil and Natural Gas Corporation Ltd. (ONGC), Bharat Petroleum Corporation Ltd., (BCPL) and the Gujarat State Petroleum Corporation Ltd. (GSPCL).
Swan’s sponsor, Nikhil Merchant, said the partnership with EXMAR “will no doubt give additional assurance to the terminal users and financial partners,” given its 10 years of experience and industry know-how.
