Swan Energy to divest LNG terminal for $399 million

16 Aug 2024 , 01:42 PM

Swan Energy Ltd., an Indian multinational corporation with a wide portfolio, plans to sell its part in a floating liquefied natural gas (LNG) terminal to Turkey’s state-run Botas for $399 million.

The Mumbai-based company reported the transaction in a stock exchange filing, stating that it expects to close the sale within the next six months, subject to shareholder and regulatory approval.

Vasant 1, a floating storage and regasification unit (FSRU), has a capacity of 180,000 cubic meters. Swan Energy, through its company Triumph Offshore Pvt., owns a 51% stake in the operation, with Indian fertiliser major IFFCO controlling the remaining 49% stake.

The terminal was originally scheduled to open in Jafrabad port on India’s west coast in 2019-2020. However, its commissioning was hampered by port facility development delays, which were worsened by the COVID-19 pandemic and a storm that hit in 2022, according to Swan Energy’s annual reports.

Despite these delays, Hyundai Heavy Industries Shipyard delivered the FSRU in September 2020, and it has been chartered to Botas since January 2023.

Swan Energy’s selling of its interest in the floating LNG terminal underscores continuous changes in the global energy landscape and exposes India’s LNG infrastructure concerns.

At around 12.21 PM, Swan Energy was trading 1.57% higher at ₹683.85, against the previous close of ₹673.30 on NSE. The counter touched an intraday high and low of ₹693.90, and ₹674.20, respectively.

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