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Swan Energy is selling its 51% stake in the floating LNG terminal Vasant 1 to Turkey's Botas for $399 million. The deal is expected to close in six months. Investors will watch Swan Energy's share price, which closed at ₹674.45 on Wednesday, down 1.25%.
Swan Energy Limited, an Indian multinational conglomerate, has announced its decision to sell its 51% stake in the floating liquefied natural gas (LNG) terminal, Vasant 1, to Turkey’s state-run Botas for $399 million. This move positions Swan Energy's share price in the spotlight.
The Mumbai-based company revealed the sale in a stock exchange filing, indicating that the transaction is expected to be finalised within the next six months. The completion of the deal is subject to the approval of both shareholders and regulatory authorities, making this a significant development for Swan Energy.
Vasant 1, the floating storage and regasification unit (FSRU) in question, has a capacity of 180,000 cubic metres. Swan Energy holds a 51% stake in the unit through its subsidiary, Triumph Offshore Pvt., while the remaining 49% is owned by Indian fertiliser giant IFFCO. It remains unclear if IFFCO will also divest its stake.
The FSRU was initially slated to begin operations at Jafrabad port on India’s west coast between 2019 and 2020. However, the project faced significant delays due to slow port facility construction, compounded by the COVID-19 pandemic and a cyclone in 2022.
Despite these challenges, the unit was delivered by Hyundai Heavy Industries Shipyard in September 2020 and has been chartered to Botas since January 2023.
India currently has seven land-based LNG terminals, five of which are operating at less than 50% capacity. This underutilization is largely due to weaker demand and insufficient pipeline connectivity to the national gas grid, highlighting the broader challenges facing the country’s energy infrastructure.
On Wednesday, Swan Energy's share price closed at ₹674.45, a decline of ₹8.55 (1.25%). Despite this recent dip, the stock has been a strong performer over the past year, delivering a return of 146.19%.
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