Swan ready with FSRU funds by March

Vol 19, PW 12 (25 Feb 16) News in Brief

Swan Energy is confident it can achieve financial closure before March 31 for its proposed 5m t/y FSRU project.

A senior Swan source tells us merchant banker SBI Caps sent out a modified Information Memorandum last week to around 20 mainly state-owned Indian banks specifying that Exmar (38%) has replaced Teekay Shipping as Swan's strategic partner. By early April Swan says it will choose EPC contractors for the project at Jafrabad port in Gujarat.

At around the same time Swan says it expects to sign firm agreements with companies who have booked capacity: GSPC (1.5m t/y), IndianOil (1m t/y), ONGC (1m t/y) and Bharat Petroleum (1m t/y). Because of the rupee depreciation against the US dollar, Swan says the FSRU project cost has fallen from $325m to $280m.

Swan wants US dollar loans to finance the FSRU and rupee loans for civil and marine construction work. Exmar will operate and maintain the FSRU while Swan hopes to outsource shore and marine facility O&M contracts.