Swan project delay as Vasant sails to Ghana

Vol 24, PW 15 (17 Jun 21) Midstream, Downstream, Renewables

Yet again, the Swan LNG project at Jafrabad in Gujarat is likely to be further delayed, this time because FSRU Vasant has sailed to Ghana and is unlikely to reach India before late July or early August next year (2022).

India-flagged Vasant arrived at the 2m t/y Tema LNG project anchorage in Ghana on May 26 (2021), where it will store and re-gasify LNG on a one-year contract. "This means the Swan LNG project commissioning will take place only after the FSRU returns to Jafrabad by the middle of next year (2022)," says an industry source.

Swan's move is unlikely to please Gujarat chief minister Vijay Rupani who already had to tell the state assembly on March 3 (2021) that the completion deadline for the 5m t/y FSRU LNG project at Jafrabad had been pushed back to March 31 (2022). Rupani told the state assembly's ongoing budget session that unforeseen cyclones and Covid-19 were to blame.

Now, the deadline will likely be pushed back further by at least by another three months to July or August (2022) while Vasant works at the $350m Tema project, which awaits commissioning. Vasant will receive 1.7m t/y LNG from Shell or up to 30 cargoes/year of 60,000 tonnes each in a project designed to meet 30% of Ghana's demand.

In February (2021), Swan special purpose vehicle Triumph Offshore signed a contract with Tema LNG for FSRU Vasant for $20,000/day. "This is a low rate for a new-build FSRU," adds an industry source.

"I don't know why it's so low, but the FSRU could have fetched much higher rates." Other than price, it seems Tema LNG project officials were impressed with Vasant's 180,000 cubic metre capacity, a better candidate than the much smaller 125,637-cubic metre FSRU Torman-II, earlier known as LNG Flora, which it replaces.