India's new LNG plant starts next yr, to boost import capacity by 12%

Swan

25/08/2021 12:46

* Swan aims to double capacity of the terminal
    * IOC, BPCL, ONGC have leased space in Swan's LNG terminal
    * 7 firms in race to participate in ONGC's LNG import
tenders

    By Nidhi Verma and Jessica Jaganathan
    NEW DELHI/SINGAPORE, Aug 25 (Reuters) - India will boost
liquefied natural gas (LNG) imports from next year as private
firm Swan Energy  SWAN.NS  starts its floating terminal, raising
the country's capacity to ship in the super chilled fuel by 12%
to 47.5 million tonnes per annum (mtpa).
    New demand for LNG from India is expected to support Asian
gas prices  LNG-AS  which rose to record highs earlier this
year, partly aided by the transition from coal or oil to gas in
developing countries.
    The 5-mtpa floating storage and regasification unit (FSRU),
located at Jafrabad in western Gujarat state, will be
commissioned in April, said P Sugavanam, director at Swan Energy
and chairman of Swan LNG Ltd, which is developing the project.
    The FSRU was initially expected to be commissioned in the
first quarter of last year, but the pandemic and two cyclones
have delayed construction of a breakwater, needed to make it an
all weather facility, Sugavanam told Reuters on Wednesday.
    "The breakwater should be completed by March," Sugavanam
said, adding Ghana's Tema LNG is currently using the facility
for storing LNG.
    India, the world's fourth largest LNG importer, wants to
raise the share of natural gas in its energy mix to 15% by 2030,
from the current 6.2% to cut emissions.
    Companies are investing billions of dollars in India to
build gas infrastructure as Prime Minister Narendra Modi wants
to raise the share of cleaner fuel in India's energy mix to 15%
by 2030 from the current 6.2%.
    Swan is setting up a jetty and will build more tanks to
eventually double the LNG import capacity, he said.
    State-run gas importers Indian Oil Corp  IOC.NS  and Bharat
Petroleum Corp  BPCL.NS , and exploration firm Oil and Natural
Gas Corp  ONGC.NS  have leased 1 mtpa capacity each at Swan's
terminal.
    ONGC earlier this year invited bids from potential suppliers
for regular participation in its spot LNG buy tenders, according
to a document obtained by Reuters.
    Seven companies - Emirates National Oil Co (Singapore),
Total Gas & Power, PTT International Trading, Vitol Asia,
Gazprom Marketing & Trading Singapore, Mitsui & Co and Uniper
Global Commodities - showed interest in participating in ONGC's
tenders, a source familiar with the matter said.
    Vitol and Mitsui declined comment while the others including
ONGC did not reply to Reuters request for comment.    
    Swan Energy owns 63% of Swan LNG, while two entities of
Gujarat state government together have a 26% share. Mitsui holds
11% and is also the technical partner on the project.  

 (Editing by David Evans)
 ((Jessica.Jaganathan@thomsonreuters.com; +65 6870 3822; Reuters
Messaging: jessica.jaganathan.thomsonreuters.com@reuters.net;
Twitter: https://twitter.com/j3ssi3))