Mumbai-based Swan Energy
(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 Swan LNG.
According to sources, a lenders’ consortium will take a call on allowing SEL
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 SEL
through Swan LNG.
Already, port construction has begun with engineering, procurement and construction (EPC) contracts being awarded by Swan LNG.
Further, having completed a technical assessment of the FSRU
project, the company is conducting a commercial assessment.
According to sources, SBI Capital Markets is the lead consultant for Swan LNG
for raising funds through the lenders’ consortium. However, Swan Energy
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 Tata Realty and Infrastructure
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 Swan Energy
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 FSRU
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).