An MOL-controlled LNG carrier has been selected to serve as the floating storage unit for Swan Energy’s import project in India, where the Japanese shipowner is a shareholder.
Brokers said the 137,661-cbm Dukhan (built 2004), a Moss-type vessel, has been fixed to Swan Energy for 19 years. No rate was given for the deal.
The vessel, which was constructed at Japan’s Mitsui Engineering & Shipbuilding Co, has been on long-term charter to Qatargas. The new deal comes as the Qatari producer has been starting to redeliver some of its older vessels as they near the end of their charters.
Those close to the project said the Dukhan is one of the vessel candidates for the business but that it has not yet been fixed.
TradeWinds reported in mid-2018 that MOL had started the hunt for an FSU that could be used on Swan Energy’s project.
Newbuilding
Swan Energy is building an LNG import project at Jafrabad in Gujarat state on India’s west coast.
The facility will use a five million tonnes per annum capacity floating storage and regasification unit to handle LNG supply.
Swan Energy contracted this FSRU as a newbuilding, signing up with South Korean shipbuilder Hyundai Heavy Industries on a 180,000-cbm unit in 2017.
The vessel, named on databases as the Vasant, is currently shown as undergoing sea and gas trials at the shipyard.
But an FSU is needed in addition to providing extra storage and flexibility for gas import operations.
MOL officials earlier indicated to TradeWinds that the company’s first choice was to use one of the existing LNG carriers from its own fleet for this business.
Swan Energy had planned to commission the new terminal last year, but the scheduling has slipped.
The Indian company’s plans to build an LNG terminal at Jafrabad go back many years.
At different stages, shipowners Teekay LNG and Exmar tangled with the project. But in 2017, MOL said it was taking an 11% stake in the venture, through affiliate FSRU Venture India One.
Option
Swan Energy holds a 63% stake, with the Gujarat Maritime Board sitting on 15% and Gujarat State Petronet on 11%.
MOL will provide operation and maintenance for the FSRU and, under its agreement, was also contracted to supply an FSU to the project.
Until its delivery, MOL has the right to exercise an option to own part of the FSRU for the project.
Indian energy companies Oil and Natural Gas Corp and Bharat Petroleum have signed up to buy 1 mtpa each from the 5-mtpa FSRU unit.
MOL has been building up its FSRU expertise, with company officials talking about establishing a 10-vessel regas fleet.
The company owns the world’s largest unit, the MOL FSRU Challenger (built 2017), which is on charter to Turkey’s Botas but is scheduled to shift to a long-term charter in Hong Kong this year.
In addition, the company its building the FSRU for the huge Java 1 power project in Indonesia.
