The Swan LNG Terminal is India’s first greenfield Liquefied Natural Gas (LNG) port terminal project being constructed by Swan LNG (SLPL) in Gujarat, India.
Swan LNG (SLPL) is a special-purpose vehicle company established by Swan Energy (63%), Gujarat Maritime Board (15%), Gujarat State Petronet (11%), and FSRU Venture India One (11%) (an Indian subsidiary of Mitsui O.S.K. Lines) under the Shareholders Agreement of October 2017.
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The project was awarded under Swiss Challenge Route on a public private partnership model and is being developed under the Concession Agreement with Gujarat Maritime Board and the Government of Gujarat.
The construction commenced after 2013 when Swan Energy received permission for the development of the project from the Gujarat Maritime Board.
The project was expected to commence operations in the second half of 2020 but was delayed because the under-construction facilities of the project were destroyed by the cyclone Tauktae.
As of March 2023, the project is 79.11% complete and the operations will commence after the completion of the construction.
SLPL achieved Financial Closure with the State Bank of India (SBI) as the lead bank for a loan averaging INR 1810.88 crores ($217.58m) from various banks till March 2023.
Swan LNG Terminal Location
The Swan LNG Terminal is located at Bhankodar Village in Amreli district of Gujarat. Amreli is situated at the mouth of the Gulf of Cambay on the southwest coast of Saurashtra, Gujarat.
The project is situated in the Jafrabad Creek between the Pipavav Port towards the east and Jafrabad Port towards the west.
The terminal is connected by the State Highway (SH 35) located approximately 7km away. Rajula Town lies 24km northeast of the project and Diu Airport is located 60km away from the project.
Swan LNG Terminal History
Swan Energy prepared a draft detailed project report of the project and evaluated options to finalise the site in 2008.
In 2010, a joint development agreement was signed by Swan Energy with Teekay Corporation.
The Government of Gujarat announced a New LNG Terminal Policy in 2011 under which Swan Energy submitted a detailed proposal of the project to the Gujarat Government and received approval in 2012.
Swan Energy received a final environmental clearance from the Ministry of Environment and Forests (MOEF) and a letter of intent to develop the project from the Gujarat Maritime Board in 2013.
In 2014, the project received Principle Sanctions to finance the project from leading banks.
The project was expected to be operational in the second half of 2020.
Swan LNG Terminal Details
The Swan LNG Terminal will have a total capacity of up to 10 million metric tonnes per annum (mmtpa). It will be developed in phases and operated on a tolling business model.
The first phase of the project will have a capacity of 5mmtpa and is being implemented with a Floating Storage and Regasification Unit (FSRU) named Vasant 1.
The project will consist of two terminals where LNG will be unloaded by a FSRU and a Floating Storage Unit (FSU).
The transport of the LNG will be done by LNG vessels of 80,000-266,000m3 capacities by the terminal users.
The terminal users will be Indian Oil (IOCL), Bharat Petroleum (BPCL), Oil and Natural Gas (ONGC), and Gujarat State Petroleum (GSPC).
The FSRU and FSU will store LNG at -160oC and regasify it. The regasification of LNG will be conducted through an open loop Shell & Tube heat exchange system.
The regasified LNG pumps will pump out LNG from tanks at by increasing pressure at the rate of 80-100 bar.
The LNG will be vaporised by LNG vaporisers and the vaporised LNG will be sent to pipelines. The pipelines will carry the vaporised LNG to the delivery point located about 2-3km from the terminal.
The harbour area will have a minimum depth of 14.5m and will be dredged with an estimated dredging volume of 8.52 million m3.
The project will also have onshore facilities consisting of a green belt, pipeline corridor, buildings, metering units, electrical system, fencing, storage tanks, moorings, lines, fenders etc.
FSRU Details
The FSRU of the project is 294m long and 48m broad with a cargo capacity of 180,000 cubic metres (cbm) and a deadweight of 85.4 thousand metric tons (kmt).
The FSRU has a regasification capacity of 50 million standard cubic feet per day of gas (mmscfd) (minimum) and 1,000mmscfd (maximum).
Four dual fuel diesel engines power the FSRU equipped with a design service speed of 12 knots.
The successful delivery of the FSRU has been taken up in September 2020 by Triumph Offshore (TOPL), a company held by Swan Energy (51%) and Indian Farmers Fertiliser Cooperative (IFFCO) (49%).
Post-delivery, the FSRU is on charter hire for interim use by charterers till the project is ready for operations.
Swan Energy signed a Bareboat Charter (BBC) Agreement with TOPL to charter the FSRU for 20 years.
A Financial Closure was achieved successfully by TOPL with SBI (lead bank) receiving a loan of INR 1,455.88 crores ($174.82m) from various banks till March 2023.
Contractors Involved
In September 2017, Mitsui O.S.K. Lines signed an agreement with SLPL for the long-term operations/maintenance of FSRU and FSU. Mitsui is also investing in the project.
Black & Veatch was selected by SLPL in July 2017 to deliver the critical infrastructure of the project via the Engineering Procurement and Construction (EPC) contract.
The scope of the contract also included the delivery of the jetty topside and onshore LNG facilities for the project plant.
SLPL awarded a contract to Royal Haskoning DHV for the project. Royal Haskoning selected Concrete Layer Innovations for the sublicence contract and technical assistance for ACCROPODE II units.
Concrete Layer Innovations provided a 2,000m long breakwater with ACCROPODE II armour ranging from 6m3-12m3.
Hyundai Heavy Industries built the FSRU of the project at its shipyard in South Korea. Mitsui O.S.K. Lines supervised the construction of the FSRU.
Important Agreements
SLPL signed regasification agreements averaging 4.5mmtpa with Gujarat State Petroleum (1.5mmtpa), BPCL (1mmtpa), IOCL (1mmtpa), and ONGC (1mmtpa) for 20 years.
