Swan Energy to foray into Oil & Gas business

Swan Energy Ltd acquired erstwhile Anil Ambani group company Reliance Naval & Engineering (RNEL), plans to turn itself into the biggest private player in the manufacture of naval defence and oil and gas vessels. It will also aim to be the largest player in green ship-breaking, ship repairing and a hub for global manufacturing in the Asia Pacific region.

Led by businessman Nikhil Merchant and his family, Swan Energy partnered Hazel Mercantile Ltd through a special purpose vehicle – Hazel Infra Ltd to acquire RNEL, the largest shipyard in the country. In December, the National Company Law Tribunal approved its Rs 2,100-crore bid for RNEL, which will be renamed Swan Heavy Industries Ltd. Swan Energy, a diversified business group with interests in oil and gas, real estate and textiles, holds a 74% stake in the SPV while Hazel Mercantile owns the rest.

Swan Energy plans to use the facility to bag international orders as the shipyard was also qualified for the maintenance of the Fifth and the Seventh Fleet of the US Navy. Currently, the company is in discussions with the Coast Guard, which is in search of a jetty. Executives said if the talks fructify, the Coast Guard could be using Swan’s facility. RNEL, formerly Pipavav Shipyard, has a 720-metre sea front and 685-metre outfit quay, making it one of the largest dry docks in the world.

Swan Energy has a presence in LNG (liquefied natural gas) port terminals and trading in petro products. The company took delivery of India’s first Floating, Storage and Regasification Unit (FSRU) near Jafrabad, Gujarat last year. Over the past few trading sessions, shares of Swan Energy have touched seven-month highs. On Friday, it ended at Rs 311, down 3.6% on the BSE even as the benchmark Sensex ended 0.75% lower.