Marine Link
Tuesday, June 15, 2021

Bumi Armada, Shapoorji Pallonji JV to Set Up FSRU in Mumbai Harbour

Maritime Activity Reports, Inc.

May 19, 2021

Mumbai - Credit:  Elena Odareeva/AdobeStock

Mumbai - Credit: Elena Odareeva/AdobeStock

Through a joint venture firm with Shapoorji Pallonji, Malaysian floating production vessel company Bumi Armada has struck a deal to set up and operate a floating storage regasification unit (FSRU) in Mumbai Harbour.

SP Armada Clean Energy Ventures Private Limited (SPACEVPL), Bumi Armada's joint venture with Shapoorji Pallonji entered into a license agreement on May 18, 2021,  with the Board of Trustees for the Port of Mumbai to set up, operate, and maintain an FSRU in Mumbai Harbor for a period of 30 years.

Under the license agreement, the parties have 270 days from the date of execution of the agreement to fulfill certain conditions before the agreement becomes effective.

The preconditions include Bumi Armada's JV securing financing, applicable permits for the start of construction works, and signing of the agreement between the FSRU owner/ charterer and SP Armada Clean Energy Ventures Private Limited for providing the FSRU for the license period.

At the end of the license period, ownership of the infrastructure, including the pipeline and jetty, except for the FSRU, is planned to be transferred to the Port of Mumbai.

"Further details relating to the project will be announced when there are further material developments," Bumi Armada said.

"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," the company said.


Offshore Wind is the focus of this special April 2021 eMag edition from Maritime Reporter & Engineering News (MR), combining the resources of MR + sister-publications Marine News and Offshore Engineer
Read the Magazine

Inside the Red-Hot Offshore Wind Market

2021: The Year When Offshore Wind Takes Off in the United States

Maritime Reporter E-News subscription

Maritime Reporter E-News is the maritime industry's largest circulation and most authoritative ENews Service, delivered to your Email five times per week

Subscribe for Maritime Reporter E-News