India’s Swan Energy Ltd. is poised to sell its stake in a floating liquefied natural gas terminal to Turkey’s state-owned Botas for $399 million. The sale, which involves Swan’s 51% share in its subsidiary Triumph Offshore, is subject to shareholder and regulatory approvals and is expected to conclude within six months. It is currently unclear whether IFFCO, which owns the remaining 49% of Triumph, will also sell its stake.
Swan Energy is simultaneously awaiting approval from a consortium of banks to finalize a floating storage and regasification unit (FSRU) charter agreement with Botas. This deal, established on December 31, 2022, involves chartering the 180,000-cbm FSRU Vasant 1 for one year at $250,000 per day.
The FSRU was originally intended for Swan Energy’s Jafrabad LNG import terminal on India’s west coast, but project delays caused by the Covid-19 pandemic and a cyclone have stalled its commissioning. As a result, the FSRU was chartered to Botas in January 2023, marking a temporary measure until the Jafrabad project is completed.
Strategic Deployment in Turkey
Botas plans to deploy the FSRU Vasant 1 at its new LNG jetty in Saros Bay, Turkey. This terminal is part of Turkey’s broader strategy to enhance energy security and establish itself as an international gas hub. The FSRU, which recently arrived in Turkey with a cargo from Egypt, is Turkey’s third such terminal, underscoring the country’s growing focus on LNG imports.