Gujarat LNG project

The FSRU will be at the upcoming Jafrabad LNG port and is expected to cost approximately US$1bn (Rs5,600 crore) according to SEL.

Nikhil Merchant, managing director of SEL, said: “We will fund it through internal accruals as well as debt. Swan has a huge land bank under development. We will also go to market for QIP. Subject to global economic conditions, we can also look at the option of FCCB in the near future.”

He continued: “The money will be raised in Swan Energy and then invested in Swan LNG.”

The Jafrabad LNG Port will see a 5 MTPA receiving terminal, with one jetty-moored FSRU. It has also been expressed that there is an intention to expand the terminal to 10 MTPA, through the deployment of a second FSRU.

Swan LNG Pvt Ltd has seen an equity stake of 51% by SEL, 38% by Exmar Marine and 11% by Gujarat State Petroleum Corporation.

Exmar will bring its experience in floating LNG solutions to the project after having introduced the first FSRU in 2005.

The LNG Port and FSRU will be developed on a build, own, operate and transfer (BOOT) project model.

Mr Merchant concluded: “With Exmar, we bring over 10 years of experience in the development, construction, ownership and operation to India’s first LNG FSRU Terminal.”

“Exmar’s professionalism and know-how will no double give additional assurance to the terminal users and our financial partners.”