Swan Energy Ltd., led by Nikhil Merchant, has announced its plan to sell its stake in a floating LNG receipt terminal to Turkey’s state-owned Botas Trading IC for $399 million. The deal involves the sale of assets from Swan’s subsidiary, Triumph Offshore Pvt Ltd (TOPL), and is expected to be finalized within six months, with the payment to be received in multiple tranches.
Triumph Offshore Pvt Ltd owns the Vasant-1, a floating storage and regasification unit (FSRU) with a capacity of 5 million tonnes per year. Swan Energy holds a 51% stake in TOPL, while the remaining 49% is owned by the fertilizer manufacturer IFFCO. It is not yet clear whether IFFCO will also divest its share in this transaction.
Swan Energy is currently developing an LNG import facility at Jafrabad in Gujarat. Initially, LNG was to be imported in liquid form and then reconverted to gas for distribution via an undersea pipeline. However, the terminal’s commissioning has faced delays due to the pandemic and a cyclone in 2022. Consequently, Swan leased the FSRU to Botas for an initial period of 304 days.
The FSRU ‘Vasant-1’ was delivered to TOPL on September 29, 2020, from Hyundai Heavy Industries Shipyard. Following its delivery, the unit was chartered as an LNG carrier until the Jafrabad LNG port becomes operational, which has provided substantial revenue and savings on parking charges.
TOPL signed a heads of agreement with Botas Trading IC on December 31, 2022, for the chartering of the FSRU on a bareboat basis for at least 304 days, beginning January 2, 2023.
Swan Energy’s Jafrabad terminal is managed by Swan LNG Pvt Ltd, another subsidiary, with Swan Energy holding a 63% equity stake. The Gujarat government owns 26% of the terminal through Gujarat Maritime Board (GMB) and Gujarat State Petronet Ltd (GSPL), and Mitsui OSK Lines (MOL) of Japan holds an 11% stake as the technical partner.
The terminal, with a capacity of 10 million tonnes per year, has secured capacity bookings from state-owned oil firms, including Gujarat State Petroleum Corp (GSPC), Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation (IOC), and Oil and Natural Gas Corporation (ONGC), for 20 years. The facility will operate on a tolling model.
