Bhavnagar CNG terminal : Gujarat government clears decks for $260m project

Bhavnagar CNG terminal : The western Indian state of Gujarat has approved a letter of intent (LOI) pertaining to a compressed natural gas terminal at the Bhavnagar port to be developed with an investment of INR19 billion ($260 million).

The midstream facility sanctioned by Gujarat Chief Minister Vijaybhai Rupani is expected to become the first-ever CNG terminal in the world. Last November, the CNG project was given permission in principle by the Gujarat government.

Foresight Group – a UK-based infrastructure and private equity investment manager, Indian conglomerate Padmanabh Mafatlal Group, and Royal Boskalis Westminster – a Dutch dredging and heavylift company, that will be among several firms to be involved in the development of the Bhavnagar CNG terminal.

The consortium of developers will kickstart work on a detailed project report (DPR) and also begin efforts to get environmental approval for the brownfield project at the Bhavnagar port. As per the Gujarat government, these processes are likely to take 18 months, after which the construction pertaining to the Bhavnagar CNG terminal will be wrapped up in three years.

The CNG project at Bhavnagar port will be developed in a phased manner with the first stage to cost INR13 billion ($180 million). Its capacity will be 1.5 million tonnes of cargo per year.

Gujarat government clears decks for $260m Bhavnagar CNG terminal. Image courtesy of Freedommail from Pixabay.

Other infrastructure that make up the Bhavnagar CNG terminal are a liquid cargo terminal with an annual capacity of 4.5 million tonnes, an RO-RO terminal, and a container and white cargo terminal.

The Bhavnagar port will undergo some modifications to its existing infrastructure. Among these are dredging in channel and port basin, construction of a couple of new lock-gates, and infrastructure facilities for on shore transportation of CNG.

Currently, the Gujarat Maritime Board is managing the Bhavnagar port, which has a capacity of handling 30-lakh metric tonnes of cargo per year. Once the Bhavnagar CNG terminal is up, the cargo handling capacity of the Gujarati port will increase to 90-lakh metric tonnes per annum, said the government.