Botas interested in buying FSRU from Swan
If true, it could be the last nail in the coffin for Swan LNG's proposed FSRU project at Jafrabad.
Whispers are circulating that Swan might be about to sell its FSRU vessel Vasant (also known as Vasant-1) to Botas, Turkey's state-owned gas pipeline and trading company, where it is on lease. Still unconfirmed, the development would undoubtedly delay Swan's Jafrabad LNG project commissioning, if not kill it outright.
This would be bad news for project partners Mitsui OSK Lines, the Gujarat Maritime Board and Gujarat State Petronet. "I've heard Botas has shown interest in buying Vasant rather than sending it to Jafrabad after the contract," reports a source.
Swan has provided no updates on Vasant's status since its parent company Swan Energy confirmed the Botas lease contract to the BSE on March 10 (2023). "Triumph Offshore, a subsidiary of Swan Energy has executed a term sheet on December 31 (2022), with Botas Trading IC, Jersey, Ankara, Turkey, to charter the FSRU Vasant-1 for 365 days, at a rate of $250,000/day," said the statement, after the BSE and NSE demanded a clarification.
"However, receipt of approval from a consortium of lenders and execution of the agreement with the charterer (Botas) is pending; we shall make further announcements once the agreement is executed." An industry source tells us interest in Vasant from Botas is unsurprising as FSRUs are in great demand worldwide.
"Botas is ready to pay more than $400m for Vasant," he says. "There's a clause allowing for sale in the term sheet Swan and Botas signed."
If the FSRU fails to arrive at Jafrabad, a huge question mark will hang over Swan's LNG project. "It is too early to say anything," we hear.
"Swan must still complete the marine and land-based facilities; if Vasant doesn't return, Swan might hire another FSRU." Swan LNG stakeholder Mitsui is unsurprisingly anxious.
"Mitsui's people are doing the rounds in Gandhinagar," we hear. As Swan's technical partner, Mitsui is likewise worried about the future of the separate proposed Floating Storage Unit (FSU) designed to store LNG at Jafrabad.