Swan Energy to Sell LNG Terminal to Turkey’s Botas for $399 Million

Nikhil Merchant-led Swan Energy Ltd announced plans to sell its stake in a floating LNG receipt terminal to Turkey’s state-run Botas for $399 million. The assets of its subsidiary, Triumph Offshore Pvt Ltd (TOPL), will be sold to Botas Trading IC, according to a recent regulatory filing.

“The definitive documents shall be signed in due course,” the company stated, adding that the deal is expected to be completed within six months. The sale consideration will be received in multiple tranches over an unspecified period.

TOPL owns a 5 million tonne-per-year floating storage and regasification unit (FSRU) named Vasant-1. Swan Energy holds a 51% stake in TOPL, while fertilizer maker IFFCO owns the remaining 49%. The filing did not specify whether IFFCO would also be selling its stake. Swan Energy is constructing a liquefied natural gas (LNG) import facility at Jafrabad in Gujarat. Initially, the plan was to import LNG—super-cooled liquid gas—via the floating terminal, reconvert it to its gaseous state at the FSRU, and transport it through an undersea pipeline to onshore users. However, delays in terminal commissioning due to the pandemic and a cyclone in 2022 led Swan to lease out the FSRU to Botas for an initial period of 304 days.

TOPL took delivery of FSRU Vasant-1 from Hyundai Heavy Industries Shipyard on September 29, 2020. The FSRU was initially chartered as an LNG carrier, generating revenue and saving on parking charges, as outlined in the company’s annual report.

On December 31, 2022, TOPL signed a heads of agreement term sheet with Botas Trading IC for the bareboat chartering of the FSRU for at least 304 days, starting January 2, 2023.

The Jafrabad port and terminal are owned by another Swan subsidiary, Swan LNG Pvt Ltd. Swan Energy is the lead promoter with a 63% equity stake, while the government of Gujarat holds 26% (15% by GMB and 11% by GSPL), and the Indian subsidiary of Japan’s Mitsui OSK Lines (MOL) holds 11% and serves as the project’s technical partner.

The 10 million tonne-per-year terminal has signed a capacity booking agreement with state-owned oil firms. Gujarat State Petroleum Corp (GSPC) has booked 1.5 million tonnes per year of capacity, while Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation (IOC), and Oil and Natural Gas Corporation (ONGC) have each booked 1 million tonnes per year for 20 years. The port is to be operated on a tolling model, according to Swan.

Filatex Fashions’ Subsidiary Secures Rs.293 Crore Export Order

Filatex Mines and Minerals, a subsidiary of Filatex Fashions, has landed a significant export order worth $35 million (Rs.293 crore) from Bloomflora Ventures. The order involves supplying 2.97 tonnes of white marble over the next seven years for the construction of 54 hospitals across Africa.

OVL Secures Contract Extension for Vietnam Oil Blocks

India’s leading overseas oil firm, ONGC Videsh Ltd (OVL), has secured a 16-year extension for its production sharing contract (PSC) for Block 06.1 in Vietnam’s Nam Con Son Basin, allowing it to continue producing oil and gas until 2039. In addition, the Vietnamese authorities have granted a three-year extension for OVL to continue exploring Block 128 in the contested waters of the South China Sea, according to company officials.

OVL, the overseas arm of the state-owned Oil and Natural Gas Corporation (ONGC), holds a 45% stake in Block 06.1, which was acquired in 1988. The block, operated by Zarubezhneft EP BV (35% interest) with PetroVietnam holding the remaining 20%, produces approximately 1 million tonnes of oil and oil equivalent gas annually. The extension of the PSC for this block is effective from May 19, 2023.

For Block 128, which has seen exploration efforts since 2006, the latest extension extends the exploration license until June 15, 2026. Despite not yet finding commercially viable reserves, OVL has maintained its presence in the block due to India’s strategic interests in the South China Sea, an area marked by territorial disputes with China. The Vietnamese government supports OVL’s continued exploration efforts as a counterbalance to Chinese influence in the region. OVL first entered Vietnam in 1988 with the exploration license for Block 06.1 and expanded its operations in 2006 by acquiring exploration licenses for Blocks 127 and 128. While Block 127 was relinquished due to poor prospects, Block 128 was retained and has seen multiple extensions over the years despite challenging exploration conditions.

The company has undertaken extensive seismic data acquisition and reprocessing as part of its exploration efforts and continues to seek further data to assess the block’s potential. The ongoing work in Block 128, which lies in an area claimed by China, underscores India’s strategic interest in maintaining a presence in the South China Sea, despite past warnings from Beijing.

AXISCADES Subsidiary Secures UK Contract for Liquid Air Energy Storage Project

AXISCADES Technologies Ltd announced that its subsidiary, Epcogen, has secured a long-term contract with Highview Power Limited for the Carrington Power Project in Manchester, UK. This project, which will be the world’s largest liquid air energy storage (LAES) facility, is designed to provide 50 MW and 300 MWh of long-duration energy storage capacity, capable of supplying power to over 1 million UK homes. Epcogen will be responsible for delivering multi-discipline engineering activities for the project, which is expected to begin commercial operations in 2026. The contract builds on Epcogen’s previous involvement, extending from the front-end engineering design (FEED) phase, which commenced in mid-2022, to the current EPC execution stage.

Arun Krishnamurthi, CEO and MD of AXISCADES, expressed enthusiasm about the partnership, stating, “We are excited to partner with Highview Power on this transformative and pioneering project. This contract represents a significant opportunity to enhance our engineering proficiency and strengthen our commitment to supporting innovative energy solutions that drive sustainability and efficiency. This collaboration exemplifies Epcogen and AXISCADES’ combined capabilities in delivering complex engineering solutions. We look forward to contributing to the success of the Carrington Power Project and future initiatives with Highview Power.

REC Ltd Seeks to Finance Overseas Projects, Applies for Subsidiary at GIFT City

REC Limited, a ‘Maharatna’ company under the Ministry of Power, has applied to establish a subsidiary in Gujarat’s GIFT City, paving the way to finance offshore projects. Chairman and Managing Director Vivek Kumar Dewangan indicated that financing for these projects could begin as soon as this financial year, pending approval.

The company announced its Q1 financial results, showing a 19% increase in revenue from operations to Rs.13,023 crore, up from Rs.10,976 crore the previous year. Net profit rose 16% to Rs.3,442 crore, the highest first-quarter profit recorded.

Dewangan expressed optimism about maintaining a 15-17% growth trajectory, noting a 17% increase in the loan book to Rs.5.30 lakh crore. The company aims to double its loan book to Rs.10 lakh crore by 2030, with 30% coming from renewable energy projects.

REC’s market capitalization soared by 219% to Rs.1,38,348 crore at the end of the June quarter, with a share price increase of 221% over the past 12 months. The company also reported a reduction in net credit-impaired assets to 0.82% and aims for zero net NPA by the end of the financial year.

REC, which attained Maharatna status in 2022, finances a wide range of power infrastructure projects and has diversified into non-power infrastructure sectors, including roads, metro rail, airports, and more.