SCI looking to strengthen its LNG business
12 October 2018
Shipping Corporation of India Ltd (SCI) is planning to buy stake with an investment of Rs. 40bn in the Swan LNG Private Ltd off the Jafrabad coast in Gujarat’s Amreli district.
Japan’s Mitsui O.S.K Lines Ltd, the long-standing partner of state-run SCI in four LNG tankers leased to Petronet LNG Ltd, has a 11% stake and a textiles and real estate group, has a 63% stake in Swan LNG Pvt Ltd. MOL is one of largest LNG carrier operators and Japan’s only FSRU owner and operator. The project involves building LNG port facilities, utilising a new build FSRU along with a floating storage unit (FSU) for receiving, storing and regasifying LNG with an initial capacity of 5 mt. The FSRU and FSU will be leased on a long-term bare boat charter basis and connected by ship-to-ship transfer equipment.
FSRUs are drawing attention as a solution for flexibility and mobility in the LNG supply chain. In October 2017, Swan Energy Pvt Ltd was awarded the rights by the Gujarat government to develop and operate the LNG port for an initial period of thirty years which can be extended by another twenty years. By participating in the Jafrabad LNG project, SCI is looking to strengthen its presence in the LNG shipping business. It is the only Indian shipping company with experience in LNG transportation.