Japan's MOL, Indian Swan LNG Sign Deal

Japanese shipowner MOL is to provide key assets for India's first newbuild floating LNG import terminal, it said September 1.

It said it has signed an agreement with Indian Swan LNG for the long-term operation and maintenance both of a floating, storage and regasification unit (FSRU) and a floating and storage unit (FSU) to serve as the core receiving facilities in an LNG terminal to be developed by Swan Energy at Jafrabad in the western Indian state of Gujarat.

The FSRU serving this project is being ordered and owned by Swan Energy through its subsidiary, and MOL has an option to participate in the FSRU joint ownership; the option is exercisable any time before the delivery of the FSRU at shipyard.

MOL will also invest in Swan LNG and participate in many facets of the project as technical partner. The terminal is due to start operation in early 2020.

Swan LNG, a subsidiary of Swan Energy, is building a 5mn metric ton/yr floating LNG import terminal at Jafrabad in Gujarat. The new FSRU will be moored to a fixed jetty and regasify imported LNG to enable distribution by pipeline and road tanker.  

This will be India's first newbuilding FSRU project, and part of MOL's initiatives to "pursue vertically integrated businesses that are not limited to transportation in the LNG business," in addition to expansion of the LNG business in the growing Indian market.

Black & Veatch has been awarded the engineering, procurement and construction (EPC) contract by Swan LNG for the Jafrabad FSRU.

Shardul Sharma