Exmars Joins Indias First FSRU Project

zoom Belgian energy supply chain provider Exmar has entered into a binding term sheet with Swan Energy Limited for the joint development and operation of Indias first LNG FSRU the Jafrabad LNG Port project to be located in the State of Gujarat. The Jafrabad LNG Port will be a 5 million tons per annum (MTPA) LNG receiving terminal, with one jettymoored Floating, Storage and Regasification Unit (FSRU). Exmar says that the two partners have the firm intention to expand the terminal to 10 MTPA, through the deployment of a second FSRU.  Swan secured all necessary permitting for the project and the concession agreement is ready for execution, according to Exmar. The parties are in negotiation with EPC contractors for the breakwater, jetties, topsides and onshore receiving facilities. 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. Heads of Agreements are in place for an initial 4.5 MTPA regasification capacity, over a period of 20 years. Detailed negotiations are in progress with the four users: Indian Oil Corporation Limited (IOCL), Oil and Natural Gas Corporation Limited (ONGC), Bharat Petroleum Corporation Limited (BPCL) and the Gujarat State Petroleum Corporation Limited (GSPCL). Exmars representatives will be a part of the integrated project management team, and the company will also participate as equity partner in the LNG receiving terminal. Nicolas Saverys, CEO of Exmar, said: “We are honored to be selected for the development of what will be India’s first FSRU-based LNG receiving terminal. We were especially attracted by the steady progress made by Swan and its portfolio of bankable governmental counterparts. With an increasing demand for clean energy, EXMAR is committed to deploy more FSRU’s in India, as a fast-track and competitive solution.”