Swan Energy, led by businessman Nikhil Merchant, has announced plans to develop a floating LNG receiving and regasification terminal for its liquefied natural gas (LNG) project at Jafrabad, Gujarat. The company disclosed the collaboration in a regulatory filing.
Swan Energy has entered into a Heads of Agreement with Singapore-based AG&P Terminals and Logistics to establish joint ventures for operating the Jafrabad terminal and supplying LNG. A new joint venture company, focused on LNG supply, will be formed with Swan holding a 51% stake and AG&P LNG the remaining 49%.
Another joint venture, dedicated to providing a floating storage and regasification unit (FSRU) and a floating storage unit (FSU) for the terminal, will see AG&P LNG holding a 51% equity share, with Swan owning 49%. AG&P will also support the regasification of LNG into RLNG (regasified liquefied natural gas) and may opt for equity participation in Swan Energy’s LNG terminal.
With domestic gas production falling short of demand, India relies heavily on LNG imports for energy generation, fertilizer production, and CNG supply. The country currently operates seven LNG terminals, including three in Gujarat and others in Maharashtra, Kerala, Tamil Nadu, and Odisha.
Swan clarified that the agreements with AG&P are subject to due diligence, with the final terms to be determined after the process. Earlier this year, Swan announced its plan to sell a 51% stake in its 5 MTPA LNG FSRU, Vasant One, to Turkey’s state-owned gas company Botas for $399 million. The remaining 49% is held by the Indian Farmers Fertiliser Cooperative (IFFCO), though it remains unclear if IFFCO intends to divest its share.
The Vasant One FSRU, built by Hyundai Heavy Industries, was initially intended for the Jafrabad terminal but faced delays due to the COVID-19 pandemic and a subsequent typhoon. The vessel was later leased to Botas under a one-year bareboat charter at a reported daily rate of $250,000.
Swan Energy Limited is a diversified conglomerate with a prominent presence in the energy, textiles, and real estate sectors. Established in 1909, the company has evolved from a textile manufacturer to a dynamic enterprise focused on innovative energy solutions. Swan Energy is recognized for its pioneering efforts in liquefied natural gas (LNG) infrastructure, including its flagship Floating Storage and Regasification Unit (FSRU) project at Jafrabad, Gujarat, aimed at bolstering India’s natural gas imports. Alongside its energy ventures, the company continues to excel in high-end fabric manufacturing and real estate development, showcasing its commitment to sustainable growth and nation-building.
