MUMBAI: Billionaire Nikhil Merchant-owned
Swan Energy
has joined hands with AG&P Terminals & Logistics of US-based Nebula Energy to form a liquefied natural gas (LNG) and gas logistics ventures in India. Swan will own 51% in the LNG supply unit, while AG&P will hold the remaining 49%. This unit intends to supply LNG within India or other jurisdictions, the Indian company said in a regulatory filing. Merchant acquired Swan Energy, previously known as Swan Mills in 1992, and in 2021, he acquired Anil Ambani’s bankrupt Reliance Naval and Engineering.
Additionally, AG&P will acquire a stake in Swan Energy’s LNG regasification terminal. The two companies will also establish a separate joint venture for a floating storage and regasification unit (FSRU), with AG&P holding 51% and Swan Energy owning 49%.
FSRU vessels facilitate LNG transfer through oceanic routes. These vessels are essential as natural gas transported in liquid form via sea requires reconversion to its gaseous state before storage tank transfer.
Both parties will conduct due diligence before finalising the terms and conditions of these joint ventures, Swan Energy added. On Friday, Swan Energy’s shares closed at Rs 740 per share on the BSE, showing a decline of approximately 3%.
