Monday, November 23, 2015

Energy Logistics Group Joins in LNG Port Development Partnership

Indian and Belgian Cooperation Aims to Bring Jafrabad Home
Shipping News Feature
BELGIUM – INDIA – Energy logistics specialist Exmar has entered into a binding Term Sheet with Swan Energy for the joint development and operation of the Jafrabad LNG Port project, to be located in the State of Gujarat, India. Swan, traditionally dealers in real estate and textiles, got into the energy industry in 2008 when it proposed the port development, designed to handle up to five million tonnes of liquid natural gas per annum.

Since that date Swan says it has managed to acquire all the necessary permits for the jetty moored Floating, Storage and Regasification Unit (FSRU) and the two partners say they have the firm intention to double the throughput of gas with the deployment of a second FSRU. The Antwerp based firm has more experience in floating LNG solutions to lend to the project hence the tie up with Mumbai based Swan.

The two parties say they are in negotiation with EPC contractors for the breakwater, jetties, topsides and onshore receiving facilities and that several financial institutions have already expressed their interest in support of the project and final investment decision is therefore planned for the first half of 2016. Nikhil Merchant, sponsor of Swan commented:

“With Exmar, we bring over 10 years of experience in the development, construction, ownership and operation of FSRU’s 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.”

Heads of Agreements are in place for an initial 4.5 MTPA regasification capacity, over a period of 20 years. Detailed negotiations are in progress with the four users: Indian Oil Corporation Limited (IOCL), Oil and Natural Gas Corporation Limited (ONGC), Bharat Petroleum Corporation Limited (BPCL) and the Gujarat State Petroleum Corporation Limited (GSPCL). Nicolas Saverys, CEO of Exmar 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 FSRU’s in India, as a fast-track and competitive solution.”