Swan in FSRU race with Shell and GAIL

Vol 16, PW 22 (30 May 13) Midstream & Downstream

Believe it or not Mumbai-based Swan Energy claims it can beat established players Shell and GAIL to become the first company to deploy a Floating LNG Storage and Regassification Unit (FSRU) in India.

On May 13, Swan executives were in Delhi giving a presentation to an environment ministry ‘expert panel’ as prelude to getting approvals to anchor a FSRU off Pipavav port on India’s west coast by October 2015. “The meeting was positive,” Swan tells us.

“We should get environment ministry clearance within the next two or three weeks.” But still unclear is when Swan will sign its much heralded JV pact with Canadian partner Teekay Shipping, which prides itself as, “a global leader in oil and gas shipping, and offshore oil production.

” In February Swan said it would sign the JV the next month, or by March this year. Swan said the delay is due to lack of environment ministry clearance for the project.

Delay here however hasn’t stopped Swan preparing tenders by end-May to construct an estimated Rs1000cr ($200m) jetty and breakwater at Pipavav. “It will take us around 45 days to select a contractor,” adds Swan.

“By end-July we want to award the contract.” If this happens, Swan says it will begin jetty and breakwater construction after the monsoon, or by early October.

Financial closure is another grey area. Swan optimistically predicts it will have everything in place to finance the estimated $280m cost of a FSRU by September.

Swan wants to hire a 170,000 cubic metre capacity FSRU by July handling 4.5m t/y of LNG.