After announcing N. Chandrasekaran as the chief of Tata Group, Tata Realty & Infrastructure Ltd is all set to undertake ten percent stake in Nikhil Merchant led 5900-crore Swan Energy set up in Gujarat. This turns out to be the first investment in gas business by Tata Group.
TRIL (Tata Realty and Infrastructure) which happens to be a Tata Sons wholly owned subsidiary was established in the year 2007 to look for opportunities in the infrastructure and real estate sectors.
A stock exchange filing report by Swan Energy stated that it has already received an EOI (Expression of Interest) from Tata Realty & Infrastructure Ltd and has shown its willingness to invest a maximum of ten percent of the equity. A separate filing by Swan Energy stated that the share capital has been increased to Rs 2000-crore from Rs 5-lakhs.
26% percent equity had been picked by the Gujarat government on Swan’s LNG project. Apart from that, BPCL (Bharat Petroleum Corp Ltd), Indian Oil Corp (IOC) and Oil & Natural Gas Corp (ONGC) have already made a booking of the sixty percent capacity of LNG terminals five million capacity.
An agreement has been signed by the 3 firms to import one million tonnes/annum of their liquefied natural gas at Swan terminal. The GSPC (Gujarat State Petroleum Corp Ltd) is also initiating talks to undertake 1.5 million tonnes capacity in FSRU.
The project is being built by Swan Energy in collaboration with Belgium based Exmar which also has thirty eight percent stake in it.
Swan is eyeing for commissioning of 1 jetty-moored FSRU by 2019 in Jafrabad. Also they are working towards the expansion of capacity to ten million tonnes by deploying a second FSRU.
A regulatory filing last month by Swan stated that a Memorandum of Understanding has been signed with Alpha Energy and Petronasr for developing Sephied Baghun gas field with a capacity of 20 trillion cubic feet in Iran. The total investment amount was $615 million.
Apart from construction of infrastructure which is necessary for production, the project would also involve building of OLNG (offshore gas liquefaction facilities) which will help in converting gas to LNG which will then be shipped to different consumption centers in ships.