India’s Swan Energy to sell stake in FSRU to Turkiye’s Botas for $399m

Mumbai-listed Swan Energy has announced plans to sell its stake in a floating storage and regasification unit (FSRU) to Turkiye’s state-owned pipeline company, Botas, for $399 million. The company disclosed the deal on 14 August in a stock exchange filing, stating that the transaction is expected to close within the next six months. Payment will be made in tranches.

The FSRU, named Vasant One, has a storage capacity of 180,000 cubic meters and was built by Hyundai Heavy Industries in South Korea. It was delivered to Swan in 2020, intended for use in an LNG import terminal project in Gujarat, India. However, the project faced various logistical challenges and did not come to fruition. Currently, Swan’s subsidiary, Triumph Offshore, holds a 51 per cent stake in the FSRU, while the Indian Farmers Fertiliser Cooperative (IFFCO) owns the remaining stake. Swan has not commented on whether IFFCO will also divest its interest.

Last year, Swan Energy signed a lease agreement with Botas to operate the Vasant One, which is now part of Turkiye’s broader strategy to become an energy hub connecting Middle Eastern suppliers with European markets. Botas has previously expressed ambitions to establish a regional LNG bunkering hub, capitalising on Turkiye’s strategic geographical position.

This sale marks a significant development in the energy sector, as Botas continues to expand its influence in the eastern Mediterranean market.

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