India's Swan Energy to sell stake in FSRU to Turkey’s Botas for $399mn
Mumbai-listed Swan Energy plans to sell its stake in a floating storage and regasification unit (FSRU) to Turkey’s Botas for $399mn, the company announced on August 14 in a stock exchange filing. The deal is expected to close within the next six months, with Swan receiving the payment in tranches.
Last year, the Indian company signed an agreement to lease the 180,000 m3 FSRU, named Vasant One, to Botas. Vasant One was built by Korea's Hyundai Heavy Industries and delivered to Swan in 2020 for use as part of an LNG import terminal project in Gujarat. Swan’s subsidiary, Triumph Offshore, owns a 51% stake in the FSRU, while the Indian Farmers Fertiliser Cooperative (IFFCO) owns the remaining stake. Swan did not comment on whether IFFCO will also divest its stake.
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Swan had initially planned to establish a floating LNG terminal in Jafrabad, Gujarat, but the project never materialised due to various logistical challenges.
Turkey is geographically positioned to serve as an energy hub between Middle Eastern suppliers and European customers. Botas has previously stated that it could capitalise on this strategic position by establishing an LNG supply center to service the eastern Mediterranean market.
In September 2022, Botas said it was laying the groundwork to establish a regional LNG bunkering hub.