Swan Energy inks pact with 2 firms for developing gas field in Iran

Swan Energy Ltd has signed an MoU with Petronasr and Alpha Energy Limited for the development of Sephied Baghun gas field, which has approximately 20 trillion cubic feet (TCF) reserves, in Iran by constructing necessary on-shore surface facilities and offshore gas liquefaction facilities (OLNG). 

The project, which is estimated to cost about $ 615 million, will be implemented by a special purpose vehicle (SPV) to be registered in Kish Island (Iran). Swan Energy will have an option to participate in the equity of the SPV.

Petronasr has arranged for 20 percent of the project finance, while Alpha Energy is proceeding with front end engineering design (FEED) of the project with an initial investment of € 10 million.

As per the MoU, Swan will offtake around one million tonne per annum (MTPA) LNG from  the OLNG, which will be delivered to the FSRU (floating storage regasification unit) built by Swan in Gujarat. 

Swan Energy, in joint venture with Belgium’s Exmar Marine, is setting up the country’s first jetty-moored floating, storage and regasification unit (FSRU) at the upcoming Jafrabad LNG port. To be commissioned in January 2019, the Jafrabad LNG port will see a 5 MTPA receiving terminal, with one FSRU. Swan has already tied up for an initial 4.5 MTPA over a period of 20 years with the likes of GSPC, Indian Oil Corporation Limited (IOCL), Oil and Natural Gas Corporation Limited (ONGC), and Bharat Petroleum Corporation Limited (BPCL).