BW LPG to Begin Construction of India’s Largest LPG Import Terminal at J N Port in April.

BW LPG Ltd, the world’s leading owner and operator of LPG vessels, including Very Large Gas Carriers (VLGCs), is set to begin test piling in February for the construction of India’s largest onshore LPG import terminal at Jawaharlal Nehru Port near Mumbai. The project is being developed in partnership with Confidence Petroleum India Ltd and Ganesh Benzoplast Ltd.

Kristian Sørensen, CEO of BW LPG, confirmed the plans in an interview on January 10, noting that the companies are in the final stages of collaboration. “Ganesh Benzoplast is a vital partner as a terminal operator, and Confidence Petroleum’s off-take volumes will support this significant investment in the terminal,” Sørensen stated, adding that construction is expected to commence in the second quarter of 2024.

The joint venture, which is 55% owned by BW Confidence Enterprise Pvt Ltd and 45% by Ganesh Benzoplast, will fund the construction of the terminal with a storage capacity of 120,000 cubic meters. The facility will handle and store propane and butane and will be equipped to offload the latest fourth-generation VLGCs (93,000 cubic meters) in a single operation within 24 hours. The terminal will also have the capability to connect to the Uran Chakan pipeline to ensure efficient LPG supply across India.

The terminal will utilize the LPG jetty operated by Bharat Petroleum Corporation Ltd (BPCL) at J N Port, and the project will include the installation of two unloading arms along with pipelines to storage tanks located at Ganesh Benzoplast’s tank farm in the port area.

BW Confidence Enterprise, a joint venture formed by BW LPG and Confidence Petroleum, aims to tap into India’s growing LPG import market. Confidence Petroleum, a major player in India’s auto gas and LPG bottling sector, currently operates 68 LPG bottling plants and 287 auto LPG dispensing stations, with plans to expand its auto LPG stations to 500 in the coming years.

The project also benefits from BW LPG’s partnership with Ganesh Benzoplast, one of India’s largest liquid storage providers, which operates a tankage capacity of 3.3 lakh kilolitres across three ports.

BW LPG has a significant presence in the Indian LPG market, operating a fleet of eight LPG carriers and holding the largest share of Indian-flagged VLGCs. The company invested $30 million in Confidence Petroleum in 2024 and is also contributing $10 million towards the development of the LPG import terminal.

Sørensen highlighted the expanding LPG export volumes from the Middle East, particularly from Qatar and Abu Dhabi, which would boost LPG availability in India. He emphasized the importance of improving port infrastructure, including deeper draft jetties, to accommodate larger vessels and enhance the efficiency of LPG imports.

The project at J N Port is seen as a critical step in optimizing India’s LPG import infrastructure. Sørensen noted that the terminal would reduce logistics costs by enabling the use of VLGCs, thus making LPG more affordable and competitive for the Indian market.

ET