Swan LNG, a unit of Swan Energy, said it has executed a concession agreement with Gujarat Maritime Board and the government of Gujarat for the development of Jafrabad FSRU project.
According to a stock exchange filing, the CA for the development of India’s first floating storage and regasification unit (FSRU) based LNG port near Jafrabad in Gujarat has a 30-year term starting with the commencement of operations.
The agreement includes an option to extend the period for additional 20 years on mutually agreed terms and conditions.
With the execution of the concession agreement, Swan LNG has secured the “right and authority to develop, finance, design, construct, operate and maintain the port.”
The FSRU serving this project has been ordered by Swan Energy through its unit Triumph Offshore that signed a shipbuilding deal with South Korea’s Hyundai Heavy Industries.
The overall cost for the project with a total capacity of 5 mtpa, expected to start operation in early 2020, is at 40 billion Indian Rupees ($615.2 million).