Exmar of Belgium and Swan Energy signed a binding term sheet to jointly develop and operate the Jafrabad LNG port project in Gujarat state, India.
The receiving terminal will have a regasification capacity of 5 mtpa, using one jetty moored floating storage and regasification unit, Exmar informed in a statement on Tuesday.
Exmar added that the two companies intend to expand the terminal with the addition of a second FSRU boosting the capacity to 10 mtpa.
Swan secured all necessary permitting for the project and the concession agreement is ready for execution. The two companies are in negotiation with EPC contractors for the breakwater, jetties, topsides and onshore receiving facilities, the statement reveals.
Several financial institutions have already expressed their interest in support of the project and final investment decision is therefore planned for the first half of 2016.
The project already firmed up heads of agreements for an initial 4.5 mtpa of regasification capacity over a 20-year period. Further, “detailed” negotiations are ongoing with Indian Oil Corporation, Oil and Natural Gas Corporation Bharat Petroleum Corporation and the Gujarat State Petroleum Corporation.
According to Exmar, this development will be India’s first FSRU-based LNG receiving terminal.
LNG World News Staff; Image: Swan Energy