India Approves first CNG Import Terminal

The government of the western Indian state of Gujarat has approved the letter of intent for developing country’s first compressed natural gas (CNG) import terminal, it said on September 15 in a statement.

The terminal, which the government claims will also be world’s first, will be located at Bhavnagar. “The developmental works will begin now and it will place the Bhavnagar port as significant port on the world maritime map,” the government said.

The in-principle approval for the CNG terminal was first granted by the government in November last year. The terminal will be developed by a consortium of UK’s Foresight Group, India’s Padmanabh Mafatlal Group and Netherlands-based Boskalis.

The consortium will have to obtain an environment clearance, which is estimated to take 18 months, the government said. After that the construction is likely to start which will be finished in three years. 

The project will entail an overall investment of rupees 19bn ($260mn) with the first phase costing rupees 13bn. The project will be able to handle 1.5mn metric tons/year of cargo, will comprise a liquid cargo terminal with a capacity of 4.5mn mt/yr, a container and white cargo terminal, and a roll-on/roll-off terminal.

At present, the Bhavnagar port is managed by the Gujarat Maritime Board and handles 3mn mt/yr of cargo. With the completion of the CNG terminal, the cargo handling capacity of the Bhavnagar port will increase to 9mn mt/yr, the government said.

Since Bhavnagar is well connected with road and rail network, the government says CNG imported at the terminal can be easily transported to the northern and western regions of the country. Gujarat is already the main hub for Indian LNG imports, hosting three operational terminals.