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Tata takes stake in Swan LNG

MUMBAI, January 19, 2017 – Tata Realty and Infrastructure has taken a 10% interest in the Swan Energy LNG terminal, the company announced on Wednesday.

 

The company will join the ranks of Exmar Marine and Gujarat State Petroleum Corporation (GSPC), along with major shareholder Swan LNG, a subsidiary of Swan Energy, who all have stakes in the project.

A total of USD 821 million (INR 56 billion) is to be spent on the project, located in Jafrabad, Gujarat. The first floating storage regasification unit (FSRU) will have a capacity of 5 million tpy and will be completed by 2019. Further plans for a second FSRU are in the works. This would bring total production capacity to 10 million tpy.

GSPC has booked 1.5 million tpy of the project’s production, while ONGC, Indian Oil Corporation and Bharat Petroleum Corporation have tied up 1 million tpy each for a period of 20 years. These oil and gas handlers have agreed to pay on a tolling basis for importing their own gas to help Swan take the final investment decision and finalise project financing.

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