Japan's Mitsui OSK takes 11% stake in Swan's floating LNG port

Japanese shipping firm Mitsui OSK Lines has taken 11 per cent stake in India's first floating LNG import terminal that Swan LNG Pvt Ltd is building near Jafrabad in Gujarat.
In a regulatory filing Swan Energy said a shareholders' agreement (SHA) was executed yesterday for investment in equity share capital of Swan LNG, the firm building the Floating Storage and Re-gasification Unit (FSRU) based LNG port project.
Till now, Nikhil Merchant-led Swan Energy held 100 per cent of Swan LNG Pvt Ltd (SLPL).
Post execution of SHA, Swan Energy will hold 63 per cent, Gujarat Maritime Board (GMB) 15 per cent and Gujarat State Petronet (GSPL) 11 per cent.

"FSRU Venture India One Pvt Ltd (FVIOPL), an affiliate of Mitsui OSK Line (MOL), Japan will hold 11 per cent in the venture," it said.
FVIOPL, an affiliate company of MOL, will also be the technical partner for the implementation of the LNG project.

"SLPL is developing India's first FSRU-based LNG port project near Jafrabad in Gujarat, which is first of its kind, all weather greenfield project, with an overall project cost of Rs 4,000 crore," the company added.
Mitsui will also supervise construction of the 5 million tonne (MT) a year capacity FSRU, which will be built at a shipyard in South Korea.

As much as 90 per cent of the 5 MT capacity of the terminal has been booked for usage by state-owned firms. Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Oil and Natural Gas Corp (ONGC) have booked 1 MT capacity each. Gujarat State Petroleum Corp (GSPC) has booked 1.5 MT capacity.
Booking capacity means these companies will pay Swan a pre-decided fee to use the terminal to import their own liquefied natural gas (LNG). Swan will not be exposed to the risk of LNG import business and would operate the terminal as a tolling facility.
The project is to be completed by end-2019.

Swan had earlier stated that the project is being 80 per cent funded through debt and the rest would be in the form of promoter equity.
ONGC and IOC own 12.5 per cent stake each in Petronet LNG Ltd, which owns and operates a 15 MT-a-year LNG import terminal at Dahej in Gujarat.
While Petronet expanded the Dahej terminal on premise of leasing out the capacity to third parties, the company also has a 5 MT-a-year LNG import facility at Kochi on the west coast.
GSPC is building its own LNG terminal in joint venture with Adani Group at Mundra in Gujarat by 2018. Also, on the west coast is an under-utilised 5 MT Dabhol LNG import terminal, operated by state gas utility GAIL India Ltd.