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Swan Energy to raise funds for Rs 5,600 cr project at Jafrabad LNG port

Lenders' consortium will take a call on allowing SEL to raise funds by the end of July

Vinay Umarji  |  Ahmedabad 

Floating storage regasification unit (FSRU)
Floating storage regasification unit

Mumbai-based (SEL) is set to raise an undisclosed amount by next month to set up a Rs 5,600 crore jetty-moored floating, storage and regasification unit (FSRU) at the upcoming Jafrabad LNG port, Gujarat, through the joint venture company

According to sources, a lenders’ consortium will take a call on allowing to raise funds for the project by the end of July. The project, which is likely to be commissioned by the last quarter of financial year (FY) 2019-20, has already seen some investment by through  

Already, port construction has begun with engineering, procurement and construction (EPC) contracts being awarded by Further, having completed a technical assessment of the project, the company is conducting a commercial assessment.

According to sources, SBI Capital Markets is the lead consultant for for raising funds through the lenders’ consortium. However, Managing Director Nikhil Merchant could not be reached despite several attempts. 

It is noteworthy that the company had earlier informed of receiving an expression of interest (EoI) from and for picking up 10 per cent stake in the joint venture company. The Tata group company is learnt to be awaiting a board approval to take a call on the stake.

The EoI had come at a time when intends to raise its authorised capital from Rs 5 lakh to Rs 2,000 crore.

With one jetty-moored FSRU, the Jafrabad LNG Port's terminal will be receiving a load of 5 metric tonnes per annum (MTPA), and the terminal is further expected to see expansion to 10 MTPA through the deployment of a second with a cost of $300 million — Rs 2,000 crore approximately. Earlier in December 2016, the project also bagged an approval from Gujarat Maritime Board (GMB).

Meanwhile, Swan has already tied up for 4.5 MTPA over a period of 20 years, from which 1.5 MTPA with GSPC, and one MTPA each with (IOCL), (ONGC), and (BPCL). The company has already finalised the design with a Korean firm and is expected to take delivery of the same by December 2018.

First Published: Sat, June 24 2017. 14:15 IST