Swan Energy to commission first floating LNG unit

Mumbai: Nikhil Merchant-owned Swan Energy Ltd is planning to commission India's first FSRU (floating, storage and regasification unit) liquefied natural gas port near Jafrabad in Gujarat this year, as the country looks to boost its LNG imports.

The FSRU with a capacity of 5 million metric tonnes per annum (mmtpa) has been built at a cost of around ₹6,500 crore.

"We're expecting the country's LNG terminals to have a capacity of about 60 mmtpa in the next eight to 10 years. India, along with China and other countries, has to move towards a greener source of fuel. LNG, is the future's fuel," said Vivek Merchant, general manager - projects at the company.

Swan has signed regasification agreements including with Gujarat State Petroleum Corporation, Indian Oil Corporation, Bharat Petroleum Corporation and Oil and Natural Gas Corporation covering the entire 5 mmtpa for 20 years, he said.

FSRU is a vessel that helps in transferring LNG through oceanic channels. The natural gas that is transported through the sea in liquid form needs to be reconverted into the original gaseous state before being pumped out into the storage tanks, and the FSRU helps in this process.

The port which was to be commissioned in 2019 was delayed due to two cyclones - Vayu and Taukate - in the region and Covid-19 pandemic.