Mitsui replaces Exmar in Swan LNG proposal
For the second time in two years Mumbai-based Swan Energy has swapped partners at its proposed 5m t/y LNG FSRU and FSU project at Jafrabad in Gujarat.
First Canada's Teekay Shipping was replaced by Belgium's Exmar in November 2015. Now PETROWATCH learns that in April (2017) Swan replaced Exmar with Japanese shipper Mitsui OSK Lines.
Exmar was reportedly interested in acquiring 38% but withdrew its offer after selling its FSRU business to Royal Vopak of Holland. Now the new equity breakdown will be Mitsui with 11%, Swan with 63% and Gujarat government companies GSPC and Gujarat Maritime Board with a combined 26%.
As technical and strategic partner, Mitsui will operate and maintain the FSRU and provide on hire a converted old tanker to use as a 145,000 cubic metre capacity Floating Storage Unit (FSU). Hopefully this will be the final time the equity breakdown is juggled around, but one never can tell given the history of this long-delayed project with its endless twists and turns.
Tata Realty, which originally wanted 10% in the LNG project company Swan LNG, is carrying out due diligence to take 10% in the project's parent company Swan Energy. Fertiliser cooperative IFFCO is doing the same.
"Tata wanted a stake in Swan LNG but we told them no more stake is available," says Swan. Financial closure, predicted for the last two years, remains as elusive as ever.