Informist, Friday, Mar 24, 2023
--Sources: Maritime board refuses nod to Swan Energy LNG project
--Regulator flags inadequate infra at Swan Energy LNG unit
By Sunil Raghu
AHMEDABAD - Swan Energy Ltd's upcoming 5 mtpa liquefied natural gas facility in Gujarat has been delayed again, this time by at least a year, state government officials said, adding that the Gujarat Maritime Board declined a request by the company to let it start operations from this month as it lacked adequate infrastructure for safer operations.
The key to be able to "safely" start operations at Swan Energy's Jaffrabad LNG terminal, state government officials said, is to have a 2,200 mtr break water across its jetties for LNG tankers. "So far, Swan LNG has been able to complete work on less than 1,500 mtr. This stopped Gujarat Maritime Board from giving its go-ahead,” the state government official said.
Swan Energy, through its subsidiary Swan LNG Pvt Ltd, has been developing a greenfield LNG port project at Jaffrabad in Amreli district of Gujarat since 2013. The company was seeking to operationalise the terminal by March and is learnt to have approached Gujarat Maritime Board for requisite clearance.
The company is owned and managed by Navinchandra Dave, the chairman of the group, and Nikhil Merchant as its managing director after they took over the company from JP Goenka group in 1992. Swan Energy is currently in three business segments--textiles, real estate and energy.
It has been trying to get the project operational as quickly as possible as it has already spent nearly 60 bln rupees on the project and expect demand for natural gas in India to rise. With LNG prices globally down to nearly one-third at around $12-$14 per mbtu since December, the country is expected to see a decent rise in the demand for LNG as a fuel to fire gas-based electricity generating utilities during the summer season.
Earlier this month, the government, as part of its multipronged strategy to ensure adequate availability of power during the summer months, had announced its decision to run gas-based units. The ministry of power is reported to have directed state-run power generation company NTPC to run its 5,000 MW gas-based power stations during Apr-May, in addition to 4,000 MW of additional gas-based power capacity by other entities.
The Jaffrabad project comprises LNG port facilities that utilise Floating Storage and Regassification Unit, or FSRU, to receive LNG, storage, regassification and sending out gas. The floating unit is generally used as a fast-track solution to importing LNG, as it stores and regasifies the LNG to deliver high-pressure natural gas to the shore. It can also load small quantities of LNG on to trucks, barges or trains.
Swan Energy's FSRU –Vasant 1— is now leased out to Botas of Turkey at a rent of $250,000 per day, or around $91 mln a year.
Swan Energy said that the arrangement was "strictly temporary" in nature and was done as commissioning of the Floating Storage and Regassification Unit Project was delayed.
At 0930 IST, shares of Swan Energy traded 0.5% lower at 215 rupees on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Informist, Friday, Mar 24, 2023
--Sources: Maritime board refuses nod to Swan Energy LNG project
--Regulator flags inadequate infra at Swan Energy LNG unit
By Sunil Raghu
AHMEDABAD - Swan Energy Ltd's upcoming 5 mtpa liquefied natural gas facility in Gujarat has been delayed again, this time by at least a year, state government officials said, adding that the Gujarat Maritime Board declined a request by the company to let it start operations from this month as it lacked adequate infrastructure for safer operations.
The key to be able to "safely" start operations at Swan Energy's Jaffrabad LNG terminal, state government officials said, is to have a 2,200 mtr break water across its jetties for LNG tankers. "So far, Swan LNG has been able to complete work on less than 1,500 mtr. This stopped Gujarat Maritime Board from giving its go-ahead,” the state government official said.
Swan Energy, through its subsidiary Swan LNG Pvt Ltd, has been developing a greenfield LNG port project at Jaffrabad in Amreli district of Gujarat since 2013. The company was seeking to operationalise the terminal by March and is learnt to have approached Gujarat Maritime Board for requisite clearance.
The company is owned and managed by Navinchandra Dave, the chairman of the group, and Nikhil Merchant as its managing director after they took over the company from JP Goenka group in 1992. Swan Energy is currently in three business segments--textiles, real estate and energy.
It has been trying to get the project operational as quickly as possible as it has already spent nearly 60 bln rupees on the project and expect demand for natural gas in India to rise. With LNG prices globally down to nearly one-third at around $12-$14 per mbtu since December, the country is expected to see a decent rise in the demand for LNG as a fuel to fire gas-based electricity generating utilities during the summer season.
Earlier this month, the government, as part of its multipronged strategy to ensure adequate availability of power during the summer months, had announced its decision to run gas-based units. The ministry of power is reported to have directed state-run power generation company NTPC to run its 5,000 MW gas-based power stations during Apr-May, in addition to 4,000 MW of additional gas-based power capacity by other entities.
The Jaffrabad project comprises LNG port facilities that utilise Floating Storage and Regassification Unit, or FSRU, to receive LNG, storage, regassification and sending out gas. The floating unit is generally used as a fast-track solution to importing LNG, as it stores and regasifies the LNG to deliver high-pressure natural gas to the shore. It can also load small quantities of LNG on to trucks, barges or trains.
Swan Energy's FSRU –Vasant 1— is now leased out to Botas of Turkey at a rent of $250,000 per day, or around $91 mln a year.
Swan Energy said that the arrangement was "strictly temporary" in nature and was done as commissioning of the Floating Storage and Regassification Unit Project was delayed.
At 0930 IST, shares of Swan Energy traded 0.5% lower at 215 rupees on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2023. All rights reserved.
