Teekay and Swan

Vol 14, PW 23 (19 May 11) News in Brief

Canada-based Teekay Shipping Corporation is the latest to join the list of companies offering to set up a proposed Floating Storage and Regasification Unit (FSRU) for Swan Energy off Pipavav port in Gujarat.

PETROWATCH learns Teekay proposes to construct a jetty and a ‘breakwater’ at Pipavav and to hire out a 70,000-tonne capacity LNG tanker to Swan for use as a FSRU. Mumbai-based Swan and Teekay are believed to have signed a MoU in Mumbai in mid-April.

Under the MoU, Teekay will help Swan source LNG supplies for the proposed FSRU. Besides Teekay, Swan is also talking to John Fredriksen-owned Golar LNG Energy and Texas-based Excelerate Energy about hiring a FSRU for Pipavav.

Mitsui broke off talks with Swan over concerns about the company. Swan says it will take a decision on sourcing its FSRU shortly.

“Swan will choose whichever company offers the best deal,” comments an observer. NYSE-listed Teekay has a fleet of over 135 ships, including 17 LNG tankers.