BW LPG Ltd, a prominent player in the global liquefied petroleum gas (LPG) sector, is poised to initiate test piling in February for India’s largest onshore LPG import terminal. This ambitious project, executed in collaboration with Confidence Petroleum India Ltd and Ganesh Benzoplast Ltd, will be strategically positioned at the Jawaharlal Nehru Port (JN Port) near Mumbai. Kristian Sørensen, the CEO of BW LPG, confirmed that the project is currently in its final planning phases, with construction expected to commence in the second quarter of 2025. The joint venture has been structured such that BW Confidence Enterprise Pvt Ltd holds a 55% stake, while Ganesh Benzoplast Ltd owns the remaining 45%. This terminal will have a substantial capacity of 120,000 cubic meters, specifically designed for the storage of propane and butane, crucial components in the LPG supply chain. The facility will be engineered to handle the full offloading of fourth-generation Very Large Gas Carriers (VLGCs), capable of discharging 93,000 cubic meters within a single 24-hour operation. Furthermore, the terminal will be interconnected with the Uran-Chakan pipeline, which promises to enhance the competitive landscape of LPG supply within India.
Infrastructure Enhancements and Collaboration
The consortium is set to utilize Bharat Petroleum Corporation Ltd’s existing LPG jetty at JN Port, where BW LPG plans to bolster operational efficiency by installing two additional unloading arms and pipelines that will link to Ganesh Benzoplast’s expansive tank farm. This strategic move is designed to streamline the import process of LPG and ensure that the terminal can meet the growing demands of the Indian market. BW Confidence Enterprise Pvt Ltd, formed through the collaboration of BW LPG and Confidence Petroleum India, is dedicated to advancing onshore LPG import infrastructure investments within the country. Confidence Petroleum boasts an impressive network of 68 LPG bottling and blending plants, alongside 287 auto LPG dispensing stations, with aspirations to expand this network to 500 stations in the near future. Ganesh Benzoplast, known for its leading role in liquid storage facilities, operates three ports with a combined tankage capacity of 330,000 kiloliters, further enhancing the project’s scope.
BW LPG India’s subsidiary currently manages a fleet of eight LPG carriers, making it the largest owner of Indian-flagged VLGCs. The company’s commitment to the Indian LPG market is underscored by its previous investments amounting to $30 million in Confidence Petroleum, with a further $10 million allocated for the terminal’s development at JN Port. Sørensen noted that this terminal development aims to tackle various infrastructure challenges, such as deep-draft jetties and adequate storage facilities, which are critical for accommodating larger VLGCs. These larger vessels not only offer improved logistical efficiency but also contribute to reduced costs and increased availability of LPG in India. The CEO also highlighted the rising LPG export volumes from the Middle East, particularly from Qatar and Abu Dhabi, which align perfectly with India’s surging demand.
Strategic Importance for India’s LPG Market
The initiative is seen as a vital step in addressing the infrastructural shortcomings faced by the Indian LPG market. Sørensen articulated that this project represents a natural progression of BW LPG’s longstanding shipping operations within India, facilitating larger volumes and lower operational costs. This development is expected to significantly support the growth trajectory of India’s LPG market, which has been witnessing a consistent increase in demand. The partnership between BW LPG, Confidence Petroleum, and Ganesh Benzoplast not only enhances the terminal’s operational capabilities but also aligns with India’s broader goals of infrastructure expansion in the energy sector. As the project moves towards the construction phase, stakeholders are optimistic that it will contribute to a more robust and reliable LPG supply chain, ultimately benefiting consumers and businesses alike.
- BW LPG to commence test piling for India’s largest LPG terminal in February.
- Partnership with Confidence Petroleum and Ganesh Benzoplast to enhance LPG infrastructure.
- Terminal to handle full offloading of 93,000 cubic meter VLGCs.
- Investment of $10 million earmarked for terminal development at JN Port.
- Strategic alignment with rising LPG demand in India and the Middle East.
- Project aims to reduce logistics costs and improve LPG availability.
