India’s Swan to sell LNG terminal to Botas for $399 million

(Bloomberg) — India’s Swan Energy Ltd. plans to sell its stake in a floating liquefied natural gas terminal to Turkey’s state-run Botas for $399 million.

The deal, which is likely to be completed in six months, is subject to the approval of shareholders and regulators, the Mumbai-based company said in a stock exchange filing.

Vasant 1, the 180,000-cubic-meter floating storage and regasification unit, is owned by its subsidiary Triumph Offshore Pvt. Swan holds a 51% stake in the unit, while India’s fertilizer giant IFFCO controls the rest. 

It isn’t clear if IFFCO too will sell its shares. Spokespersons from both IFFCO and Swan didn’t immediately comment on the matter.    

The textiles-to-petrochemicals company had originally planned to commission the terminal on India’s west coast at the Jafrabad port in 2019-20. However, it suffered delays as the related port facilities couldn’t be completed in time due to the Covid outbreak and a cyclone in 2022, according to Swan’s annual reports.

Triumph got the delivery of the FSRU from Hyundai Heavy Industries Shipyard in September 2020, and chartered it to Botas in January 2023. 

India currently has seven land-based LNG terminals, but five of them are operating at less than half of their capacities due to weaker demand and the lack of pipelines connecting them with the national gas grid.