Swan Energy Says IFFCO Keen On 10% Stake

Swan Energy Says IFFCO Keen On 10% Stake

Swan Energy is building the project in joint venture withExmar of Belgium.

New Delhi: After Tata Group, India's largest fertiliser producer IFFCO has envisaged interest in taking a 10 per cent stake in Rs 5,900 crore floating LNG import terminal being set up by Nikhil Merchant-led Swan Energy in Gujarat.

Earlier this month, Tata Realty and Infrastructure (TRIL), a wholly-owned subsidiary of Tata Sons set up in 2007, had expressed interest in taking 10 per cent in Swan LNG Pvt Ltd that is setting up the Floating and Regasification Unit (FSRU) near Jafrabad in Gujarat.

In a stock exchange filing, Swan on Monday said: "Indian Farmers Fertiliser Cooperative Ltd (IFFCO) are willing to invest up to 10 per cent of the equity" in the project. 

Ahead of the move, the authorised share capital of Swan LNG Pvt Ltd "has been increased from Rs 5 lakh to Rs 2,000 crore", Swan Energy said in a separate filing.

The Gujarat government had previously taken a 26 per cent equity in the LNG project. The state government's participation in the project was through Gujarat State Petronet Ltd and Gujarat Maritime Board jointly.

State-owned Oil and Natural Gas Corp (ONGC), Indian Oil Corp (IOC) and Bharat Petroleum Corp Ltd (BPCL) have already booked 60 per cent of the capacity of 5 million tonnes a year LNG terminal.

The three firms have signed an agreement to import 1 million tonnes per annum of their own liquefied natural gas (LNG) at the Swan terminal. Gujarat State Petroleum Corp Ltd (GSPC) too is in talks to take 1.5 million tonnes capacity in the FSRU.

The companies hiring the capacity will bring their own LNG from abroad and pay Swan a tolling fee.

Swan Energy is building the project in joint venture with Exmar of Belgium, which holds a 38 per cent stake in the project.

Swan 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. 

Last month, Swan had in a regulatory filing stated that it has signed a memorandum of understanding (MoU) with Petronasr and Alpha Energy Ltd for development of 20 trillion cubic feet Sephied Baghun gas field in Iran at an investment of $615 million.

The project, besides constructing infrastructure to put the field into production, would also involve building an offshore gas liquefaction facilities (OLNG) that will convert the gas into its liquid form (LNG) for transporting it in ships to consumption centres.

"Swan will offtake around one million tonnes per year of LNG produced by the OLNG, which will be delivered to the FSRU built by Swan in Gujarat," it had said on December 14.

NDTV Beeps - your daily newsletter

................................ Advertisement ................................

................................ Advertisement ................................