Black & Veatch gains key Indian FSRU contract
Friday, Jul 28, 2017
Black & Veatch has announced that it has won a contract to provide critical elements for India’s first floating storage and regasification unit (FSRU) based LNG import terminal.

The company was awarded an engineering, procurement and construction (EPC) contract by Swan LNG.

Black & Veatch is to deliver the jetty topside and onshore LNG facilities for the 5 million tpy plant at Jafrabad in Gujurat.

The new FSRU will be moored to a fixed jetty and will regasify imported LNG to enable distribution by pipeline and road tanker.

Black & Veatch claims that the facility is expected to come on stream by early 2020.

The managing director of Black & Veatch India, Rajiv Menon, said: “The Indian government aims to significantly increase LNG import capacity by 2022. This project is a major step in this direction.”

“The Jafrabad project, along with the Indian Oil Corp.’s [IOC] LNG receiving terminal project at Ennore, signifies the trust placed by the industry in Black & Veatch to deliver LNG projects.”

Swan Energy, which is building the project in a joint venture (JV) with Belgium’s Exmar, had previously said that it would commission the FSRU by late 2019. It has further ambitions to expand capacity to 10 million tpy by deploying a second FSRU.

In December 2016, Swan Energy received approval from the Gujarat Maritime Board (GMB) to build the 56 billion rupee (US$745 million) floating LNG (FLNG) terminal.

State-owned Oil and Natural Gas Corp. (ONGC), IOC and Bharat Petroleum Corporation Ltd (BPCL) have each agreed to take 1 million tpy from the 5 million tpy terminals.

Swan Energy, owned by Indian businessman Nikhil Merchant, holds a 51% stake in Swan LNG, which is building the Jafrabad terminal. Exmar Marine owns 38% and Gujarat State Petroleum Corp. (GSPC) has 11%.

Swan is a relatively newcomer to India’s energy import market, which is dominated by ONGC and IOC through their venture Petronet LNG.

Petronet LNG already operates the 15 million tpy Dahej terminal, and aims to create 10 million tpy more at Dahej and other new terminals at Kochi in Kerala State and in Andhra Pradesh.

IOC is also building a new 5 million tpy terminal at Ennore, while GSPC is developing the 5 million tpy Mundra terminal.

India imported 19 million tonnes of LNG in 2016, making it the world’s fourth largest buyer behind Japan, South Korea and China. Import volumes are projected to rise by 50% between 2015 and 2020. The government eventually aims to raise capacity to 50 million tpy. Although demand for gas from industry is growing, there are concerns that the inadequate gas transmission network could hold back development.

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