Japan's MOL Buys 11% of Indian FSRU Project

Japanese shipowner Mitsui OSK Line (MOL) has signed a shareholders agreement with Swan Energy to buy a 11% stake in its subsidiary Swan LNG, which is building a floating LNG import terminal on India’s west coast.

In a statement sent to Indian stock exchanges October 18, Swan said that the agreement was signed October 17. Following execution of the agreement, Swan Energy will hold 63% stake in Swan LNG while Gujarat Maritime Board will own 15%, Gujarat State Petronet 11% and MOL affiliate FSRU Venture India One (FVIOPL) will own 11%. The latter will also be the technical partner for the implementation of the LNG project.

Swan LNG is building the 5mn metric ton/yr floating LNG import terminal at Jafrabad in the western Indian state of Gujarat. It will incorporate a new floating storage regasification unit (FSRU) to be moored to a fixed jetty which will regasify imported LNG to enable distribution by pipeline. Some LNG will also be loaded by road tanker at the terminal.

Black & Veatch has been awarded the engineering, procurement and construction (EPC) contract by Swan LNG for the Jafrabad FSRU.

Shardul Sharma