Three Indian State Owned Firms Plan to Book Capacities in Swan Energy's Proposed LNG Terminal

Three Indian state owned firms are looking to book capacities to import LNG with the proposed terminal built by Swan Energy at Jafrabad in the state of Gujarat with a total capacity of 5 million tonne per annum (mtpa), according to Financial Express newspaper.

Sources have told the newspaper that ONGC, Indian Oil Corp and BPCL are carrying out due-diligence to book 1-1.5 mtpa capacity at the proposed terminal.

Nikhil V Merchant, managing director of Swan Energy, told Financial Express that the financial closure of the project is expected in the next 45 days.  Nearly, 70 percent of the cost would be raised through debt.

The company last month announced that the project has been given environment clearance by the union government for setting up the FSRU based LNG terminal.

Construction is expected to commence later this year with operation likely to start in 2018, the newspaper said.