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EXMAR and Swan to jointly develop and operate Indian FSRU

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LNG Industry,

EXMAR has announced that it has successfully entered a binding term sheet with Swan Energy Ltd to jointly develop and operate the Jafrabad LNG Port project. The project will be located in the State of Gujarat, India.

The port will be capable of receiving 5 million tpy of LNG, with one jetty-moored Floating Storage and Regasification Unit (FSRU). Nonetheless, both partners have announced their firm intention to expand the terminal from 5 million tpy to 10 million tpy through the introduction of a second FSRU.

All necessary permits for the project were secured by Swan, and a concession agreement is now prepared for execution. Negotiations are currently underway with Engineering, Procurement and Construction (EPC) contractors for the breakwater, jetties, topsides and onshore receiving facilities. So far, EXMAR claims that various financial institutions have shown interest in the project, and so a Final Investment Decision (FID) is expected is to be made in the first half of 2016.

Heads of Agreements are in place for an initial 4.5 million tpy regasification capability for a period of 20 years. Negotiations are currently underway with four users: Indian Oil Corp. Ltd (IOCL), Oil and Natural Gas Corp Ltd (ONGC), Bharat Petroleum Corp. Ltd (BPCL) and the Gujarat State Petroleum Corp. Ltd (GSPCL).

The Sponsor of Swan, Nikhil Merchant, said: “With EXMAR, we bring over 10 years of experience in the development, construction, ownership and operation of FSRUs to India’s first LNG FSRU terminal. EXMAR’s professionalism and know-how will no doubt give additional assurance to the terminal users and our financial partners.

The CEO of EXMAR, Nicolas Saverys, said: “We are honoured to be selected for the development of what will be India’s first FSRU-based LNG receiving terminal. We were especially attracted by the steady progress made by Swan and its portfolio of bankable governmental counterparts. With an increasing demand for clean energy, EXMAR is committed to deploy more FSRUs in India as a fast-track and competitive solution.”

Edited from press release by David Rowlands

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