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Mitsui OSK targets stake in Swan’s Indian LNG unit

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According to the latest Reuters report, Japan’s leading shipper Mitsui OSK Lines aims to buy at least a 26% stake in a floating storage regassification unit (FSRU) in India, a company official said, to boost its exposure in the west coast project of Swan Energy.

Swan Energy is building a 5 million tpy FSRU and floating storage unit (FSU) at Jafrabad in western Gujarat state, with Mitsui awarded a long-term contract for operation and maintenance services.

Swan aims to commission the project in the first quarter of 2020.

Another Swan Energy unit, Swan LNG Private Ltd, will manage the terminal and port facilities at the project.

Mitsui will sign a deal by early next month to take an 11% stake in Swan LNG, reducing Swan Energy’s stake to 63%.

Two Gujarat state companies hold a combined 26% of Swan LNG.

Swan will charter the FSU from Mitsui OSK and has mandated Korea’s Hyundai Heavy Industries to build the FSRU.

FSRUs are FLNG regassifiers that are easier, faster and cheaper to set up than onshore plants.

Mitsui will pay about US$13 million for the 11% stake in Swan LNG.

Swan LNG will be taking bank loans to fund 80% of the US$608 million facilities, with the remainder coming from stakeholders in proportion to their holdings.

The new facilities chime with India’s push to increase the proportion of gas in its energy mix, looking to the cheaper fuel to power its economic expansion.

Swan could double its LNG regassification capacity after two years of commissioning the first FSRU.

Indian Oil Corp, Bharat Petroleum Corp, Gujarat State Petroleum Corp (GSPC) and Oil and Natural Gas Corp have agreed to lease the full capacity of Swan’s terminal.

Read the article online at: https://www.lngindustry.com/floating-lng/19092017/mitsui-osk-targets-stake-in-swans-indian-lng-unit/

 

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