Black & Veatch has bagged the engineering, procurement and construction (EPC) contract for a floating liquefied natural gas (FLNG) project in India from Swan LNG.
The project will be the first FLNG project in India and will be developed at Jafrabad in Gujarat. It will be a floating storage and regasification unit (FSRU) LNG import terminal aimed to have a production capacity of five million metric tonnes per annum (MMPTA).
The Jafrabad FLNG project is expected to help India in doubling its LNG capacity and is planned to be commissioned by early-2020.
Black & Veatch India managing director Rajiv Menon said: “The Indian government aims to significantly increase LNG import capacity by 2022. This project is a major step in this direction.
“The Jafrabad project, along with the Indian Oil Corporation's LNG receiving terminal project at Ennore, signifies the trust placed by the industry in Black & Veatch to deliver LNG projects.”
As part of the contract, Black & Veatch will deliver critical elements to the project which includes jetty topside and onshore LNG facilities.
Planned to be moored to a fixed jetty, the new FSRU from Black & Veatch will regasify imported LNG to help in its distribution by pipeline and road tanker.
Swan LNG is a subsidiary of Mumbai-based Swan Energy which had proposed to develop the FSRU-based LNG import terminal in 2008. The FSRU will be built with an investment of INR5,600 crores ($869m) at the upcoming port in Jafrabad, as per a report in Business Standard.
Swan had already secured 20-year purchase agreements for 4.5MTPA of production at the Jafrabad FLNG project. Out of which, it has agreed to supply 1.5MTPA to Gujarat State Petroleum Corporation (GSPC) and 1MTPA each for Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Oil and Natural Gas Corporation (ONGC).