Swan targets GSPL gas grid for R-LNG evacuation

Vol 23, PW 5 (16 Jan 20) Midstream & Downstream

Swan Energy is in final talks with JV partner Gujarat State Petronet (GSPL) for tie-in connectivity to the state-wide gas grid from its proposed FSRU off Jafrabad in Gujarat.

Swan is preparing for an open house hosted by the PNGRB at its Delhi office at 3pm on January 20 to approve a proposed 3-km gas pipeline to connect its proposed FSRU to GSPL’s gas grid at Kovaya village. A GSPL source expects to see a sharp increase in transmission income once the long-delayed FSRU is finally commissioned, now expected by October 2020.

"At present GSPL transmits 39m cm/d gas through its gas grid," he confirms. "But volumes should cross 50m cm/d, even if Swan starts with an R-LNG outgo rate of only 12-15m cm/d."

Swan’s FSRU project is dependent on tie-in connectivity to the GSPL gas grid as there is no other gas pipeline network in the western Gujarat region. Not even GAIL, India's biggest gas transmission company, has a presence there.

Swan's FSRU project site is at Bhankodar village in Amreli district at the mouth of the Gulf of Cambay. A Swan source confidently stresses the location will be highly advantageous because when commissioned the FSRU will become the closest Indian LNG terminal by distance to suppliers Qatar, Oman and Abu Dhabi - at least until Hindustan Petroleum and Shapoorji Pallonji’s proposed Chhara LNG terminal springs up further west on the same coastline.