CHENNAI: Tata group firm Tata Realty and Infrastructure Ltd (TRIL) announced on Wednesday that it would take over a 10 per cent stake in Swan Energy Ltd’s Rs 5,900-crore floating liquid natural gas (LNG) import terminal being set up in Gujarat.
This entry is Tata group’s first investment in the LNG sector. According to a stock exchange filing made by Swan Energy, an Expression of Interest (EOI) has been filed by TRIL “showing its willingness to invest up to 10 per cent of the equity”. The company is in the process of setting up a Floating and Regasification Unit (FSRU) near Jafrabad in Gujarat.
The Gujarat state government has taken up 26 per cent equity stake in the LNG project. Swan Energy also stated that the authorised share capital of Swan LNG Pvt Ltd “has been increased from Rs 5 lakh to Rs 2,000 crore” ahead of the move. If the valuation is equivalent, the Tata investment will be made at Rs 200 crore.
The Gujarat government meanwhile, is participating through Gujarat State Petronet Ltd and Gujarat Maritime Board. State-owned Oil and Natural Gas Corp (ONGC), Indian Oil Corp (IOC) and Bharat Petroleum Corp Ltd (BPCL) have already booked 60 per cent of the terminal’s 5 million tonnes a year capacity.