Swan Energy Ltd., led by billionaire Nikhil Merchant, has announced that it intends to pay USD 399 million to Turkey’s state-run Botas for its interest in a floating LNG receiving terminal.
According to a regulatory filing, the business intends to sell Triumph Offshore Pvt Ltd’s assets to Botas Trading IC.
It stated, “The definitive documents shall be signed in due course,” and that the transaction will probably be finished in six months.
The USD 399 million sale consideration is to be paid over an ambiguous length of time in several tranches.
Vasant-1 is a 5 million tonnes per year floating storage and regasification unit (FSRU) owned by Triumph Offshore Private Limited (TOPL). Swan Energy owns 51% of TOPL, with IFFCO, a manufacturer of fertilisers, holding the remaining 49%.
It was unclear from the filing if IFFCO is also selling off its share.
Swan is constructing a facility in Jafrabad, Gujarat, for the import of liquefied natural gas (LNG). During the first stage, liquid gas (also known as LNG) that has been super-cooled at a floating terminal and is used to manufacture cooking gas, fertiliser and energy was to be imported. At the FSRU, the liquid gas was to be transformed back into its gaseous state before being sent to the onshore location for additional user sales via an underwater conduit.
Swan leased the FSRU to Botas for 304 days in the beginning because the terminal commissioning was delayed due to a pandemic and cyclone in 2022.
On September 29, 2020, TOPL received delivery of FSRU ‘Vasant-1’ from Hyundai Heavy Industries Shipyard.
“Post-delivery of FSRU, it was put on charter hire with charterer for its interim utilisation as LNG carrier till Jafrabad LNG port is ready, which has yielded decent revenue generation and saving of parking charges,” according to the business’s most recent report.
On December 31, 2022, TOPL and Botas Trading IC signed a heads of agreement term sheet for the bareboat charter of the FSRU, to begin on January 2, 2023, and last for at least 304 days.
Another Swan subsidiary, Swan LNG Pvt Ltd, is the owner of the port and terminal in Jafrabad. Swan Energy holds a 63% equity share and is the primary promoter. The Gujarat government owns a 26% ownership (15% through GMB and 1% through GSPL), while the project’s technical partner, Mitsui OSK Lines (MOL), a Japanese company, holds an 11% investment in the Indian subsidiary.
State-owned oil companies and the 10 million tonnes per year facilities terminal have inked a capacity booking agreement.
Swan claims that a toll model will be used to operate the port. The terminal capacity has been reserved by Gujarat State Petroleum Corp (GSPC) for 1.5 million tonnes annually, while Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation (IOC), and Oil and Natural Gas Corporation (ONGC) have each reserved one million tonnes for a 20-year period.