Swan gets critical GMB approval for FSRU

Vol 17, PW 10 (19 Dec 13) Midstream & Downstream

Swan Energy has cleared an important hurdle towards setting up a Floating LNG Storage and Re-gasification Unit (FSRU) off Pipavav in Gujarat: the Gujarat Maritime Board (GMB) issued a LoI clearing the Rs4149cr ($681m) 'greenfield LNG terminal with FSRU' on November 30.

Earlier this year the 10m t/y project to set up a FSRU and port development scheme saw Canada’s Teekay Shipping take 38% in the project with Swan holding 51% and GSPC 11%. Swan will develop the project in two phases under the Build Operate Own Transfer (BOOT) model and run the terminal for 30 years before returning ownership to Gujarat state authorities.

Hopefully the FSRU should be in place by December 2016. By November 30 next year Swan must submit a Detailed Project Report (DPR) to GMB.

“We will work out the actual cost once the DPR is completed,” says Swan. Once ready, the FSRU will handle shore-to-ship and ship-to-ship loading and unloading.

Work includes constructing a LNG jetty, FSRU mooring facility, LNG berths, a breakwater to protect the harbour area, the dredging of a navigation channel, shore protection facilities and also a 2-km pipeline to connect to the state gas grid. A GMB source adds it has put the FSRU project on 'fast track' mode.

“We don’t want delays,” he says.