BW LPG to Begin Construction of India's Largest LPG Import Terminal
21 Jan 2025 CW Team
BW LPG Ltd, the world’s leading owner and operator of LPG vessels, is set to commence test piling in February for India’s largest onshore liquefied petroleum gas (LPG) import terminal. The project, in partnership with Confidence Petroleum India Ltd and Ganesh Benzoplast Ltd, will be located at the Jawaharlal Nehru Port (J N Port) near Mumbai.
Kristian Sørensen, CEO of BW LPG, confirmed that the venture is in its final planning stages and aims to begin construction in the second quarter of 2025. The joint venture—55% owned by BW Confidence Enterprise Pvt Ltd and 45% by Ganesh Benzoplast Ltd—will fund the terminal with a capacity of 120,000 cubic meters for storing propane and butane.
The facility will handle full offloading of fourth-generation Very Large Gas Carriers (VLGCs) with capacities of 93,000 cubic meters in a single 24-hour discharge operation.
It will also connect to the Uran-Chakan pipeline, ensuring competitive and efficient LPG supply in India.
The consortium will use Bharat Petroleum Corporation Ltd’s LPG jetty at J N Port, where BW LPG plans to install two additional unloading arms and pipelines connecting to Ganesh Benzoplast’s tank farm.
BW Confidence Enterprise Pvt Ltd, a joint venture between BW LPG and Confidence Petroleum India, is focused on onshore LPG import infrastructure investments. Confidence Petroleum operates 68 LPG bottling and blending plants and 287 auto LPG dispensing stations, with plans to expand to 500 stations. Ganesh Benzoplast, a leading provider of liquid storage facilities, operates with a tankage capacity of 330,000 kiloliters across three ports.
BW LPG India, the company’s Indian subsidiary, manages a fleet of eight LPG carriers and is the largest owner of Indian-flagged VLGCs. BW LPG has already invested $30 million in Confidence Petroleum and retains the option to increase its shareholding. An additional $10 million has been earmarked for the development of the LPG terminal at J N Port.
Sørensen emphasised that the terminal will address infrastructure challenges, including deep-draft jetties and storage facilities, enabling the use of VLGCs. These larger vessels are more efficient and cost-effective, reducing logistics costs and improving LPG availability in India. He also highlighted growing LPG export volumes from the Middle East, particularly from Qatar and Abu Dhabi, which align well with India’s increasing demand.
“This project is a natural extension of our long-standing shipping operations in India. It will enable larger volumes, lower costs, and support the growth of India’s LPG market,” Sørensen said, underscoring the partnership's alignment with India’s infrastructure expansion goals.
(ET)