Swan Energy Partners with AG&P Terminals & Logistics for LNG and Gas Logistics Ventures

MUMBAI: Billionaire Nikhil Merchant-owned Swan Energy has joined hands with AG&P Terminals & Logistics, a unit of US-based Nebula Energy, to form liquefied natural gas (LNG) and gas logistics ventures in India. The partnership marks a significant step in expanding India's LNG infrastructure and supply capabilities.

Swan Energy will own 51% in the LNG supply unit, while AG&P will hold the remaining 49%. This unit aims to supply LNG within India or other jurisdictions, as stated in a regulatory filing by the Indian company. 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 are crucial for facilitating LNG transfer through oceanic routes, 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 finalizing 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%.