Malaysia’s Bumi Armada and India’s Shapoorji Pallonji are planning to deploy a floating storage and regasification unit in the Port of Mumbai as part of a deal revealed on Wednesday.
The joint venture has entered into a license agreement with the Mumbai Port Trust on Tuesday to set up, operate and maintain the FSRU for a period of 30 years, according to a statement by Bumi.
Shapoorji has a 51 percent stake in SP Armada Clean Energy Ventures (SPACEVPL), while Bumi holds the rest.
The JV has 270 days from the date of execution of the deal to fulfil certain conditions precedent.
These include securing financing, obtaining applicable permits for start of construction works, but also signing a deal with the FSRU owner/charterer, Bumi said.
Also, at the end of the license period, the Mumbai port will take over ownership of the pipeline and jetty, except for the FSRU.
“In order to achieve a financially successful project, SPACEVPL will have to sell the terminal capacity and regasification to potential customers. To this end, there is a focused marketing strategy in place,” Bumi said.
The Malaysian firm added it would provide more details on the project “when there are further material developments.”
This project is not a new development as the Mumbai port has laid out plans to install an FSRU years ago but the development never materialized.
Previously, the port said the FSRU project would have a capacity of up to 5 million tonnes per annum.