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According to a statement by Crown LNG, the first agreement finalizes the acquisition of all shares of KGLNG, which owns the operating license for the company’s planned LNG import terminal in Kakinada, India.
Moreover, the second agreement finalizes the acquisition of LNG import terminal assets in Grangemouth, Scotland from GBTron Lands Limited.
Total consideration for the KGLNG acquisition will be made in shares of Crown LNG equal to $60 million, while total consideration for the GBTron acquisition will be made in shares of Crown LNG equal to $25 million.
The Kakinada project, located on the East coast of India, is licensed to operate 365 days a year, which is the first for a harsh weather-prone area.
Crown LNG said imported gas from the planned terminal would reach demand centers via the East-West pipeline, helping to support the Indian government’s drive to more than double the share of natural gas in the country’s energy mix to 15 percent by 2030.
The Grangemouth project, located on the East coast of Scotland, seeks to support the UK’s increasing drive for energy security post-Brexit and in the context of geopolitical impacts on energy markets.
Currently, the UK relies on just three facilities for all of the country’s LNG imports, which increased 74 percent from 2021 to 2022, Crown LNG said.
“We are excited and proud to announce the execution of these two transactions and move these two projects down the path,” said Swapan Kataria, CEO of Crown LNG.
“With Crown LNG and our subsidiaries now firmly in control of the Kakinada and Grangemouth projects, we look forward to driving the success of these two transformative projects for both India and the UK,” he said.
FID on Scottish FSRU terminal in Q2 2025
Crown LNG recently said it expects to make a final investment decision to build its planned FSRU-based LNG import terminal in the Firth of Forth, Scotland in the second quarter of 2025.
The company delayed the decision on the Grangemouth FSRU project, as it said in July it expects to decide on the facility in late 2024.
In July, the company selected UK-based IKM Engineering & Environmental Consultants as its partner for the design and engineering of the FSRU project.
Moreover, IKM’s mandate will include the pre-FEED and FEED (front end engineering and design) phases, including project management and execution planning.
The Grangemouth FSRU project will have a capacity of 5 mtpa and will cost about $533 million. It will supply a natural gas-fired power plant.
In July, Crown LNG and Catcha Investment completed their previously announced agreement for a business combination that resulted in Crown becoming a US publicly listed company.
Crown said at the time it is advancing development of two projects toward FID – Kakinada, and Grangemouth.
Crown LNG re-affirmed its target of Q3 2025 for the project in Kakinada, India.
This terminal will utilize gravity-based structure (GBS) facilities, and will have a capacity of 7.2 mtpa.
It is expected to cost about $1 billion.