Oil and Natural Gas Corp (ONGC), IOC and Bharat Petroleum Corp Ltd (BPCL) have agreed to take one million tons per annum capacity each on the 5 million tons a year floating LNG terminal planned at Jafrabad port in Gujarat, sources privy to the negotiations said.
Gujarat State Petroleum Corp Ltd (GSPC) too is in talks to take 1.5 million tons capacity in the floating, storage and regasification unit (FSRU).
Swan Energy is building the project in joint venture with Exmar of Belgium.
The company had last year secured all necessary permits for the project and the state-owned firms agreed to hire 60 per cent capacity of the terminal on tolling basis for importing their own gas will help Swan take the final investment decision and tie-up project financing.
Also Read
ONGC and IOC own 12.5 per cent stake each in Petronet LNG Ltd, which owns and operates a 10 million tons a year liquefied natural gas (LNG) import terminal at Dahej in Gujarat. This terminal is being expanded to 15 million tons by next month.
Sources said Swan is targeting 2019 for commissioning of the one jetty-moored FSRU at Jafrabad. It plans to expand the capacity to 10 million tons through the deployment of a second FSRU.
Merchant's Swan Energy Ltd holds 51 per cent stake in Swan LNG Pvt Ltd - the company building he Jafrabad terminal. Exmar Marine holds 38 per cent and the remaining 11 per cent is with Gujarat State Petroleum Corporation (GSPC).
GSPC is building its own LNG terminal in joint venture with Adani Group at Mundra in Gujarat by 2017. Also on the west coast is an under-utilised 5 million tons Dabhol LNG import terminal, operated by state gas utility GAIL India Ltd.
Disclaimer: No Business Standard Journalist was involved in creation of this content