India's Swan Energy to sell 51 per cent stake in FSRU

Indian oil and gas company Swan Energy has confirmed that it will sell its interest in a floating storage and regasification unit (FSRU) owned through one of its subsidiaries.

Swan Energy said via a regulatory filing that its 51 per cent stake in the 180,000-cubic-metre FSRU Vasant 1 will be sold to Turkish natural gas company Botas for approximately US$399 million. Indian cooperative IFFCO owns the remaining 49 per cent, but Swan Energy did not disclose whether these shares will also be sold.

The transaction will be finalised within six months pending regulatory and shareholder approval.

The original plan was for the FSRU to be deployed off the coast of the western state of Gujarat to support the Jafrabad LNG import terminal, which is jointly owned by Swan Energy, IFFCO, the Gujarat Maritime Board, Gujarat State Petronet, and the Mitsui Group of Japan.

Activities at the import terminal were initially scheduled to commence in 2023. However, the Covid-19 pandemic led to a drop in demand for LNG, which then pushed the start date to 2024.