Gujarat state in India approves US $260m new CNG terminal at Bhavnagar port

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The state government of Gujarat in India has approved a letter of intent (LOI) to develop US $260m compressed natural gas (CNG) terminal at the Bhavnagar port in the western Indian state.

The approval from Gujarat Chief Minister Vijaybhai Rupani allows UK’s Foresight Group, India-based Padmanabh Mafatlal Group and the Dutch firm Boskalis to build the CNG terminal. In November 2019, the Chief Minister granted permission in principle for developing the CNG terminal project.

The project, which will be equipped to handle 1.5 million tonnes of cargo annually, will comprise a liquid cargo terminal with a capacity of 4.5 million tonnes per annum, a container and white cargo terminal, and a roll-on/roll-off (RO-RO) terminal.

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CNG terminal at Bhavnagar port

According to a press statement from the Gujarat government, presently, the Bhavnagar port is managed by the Gujarat Maritime Board and handling 30-lakh metric tonnes of cargo per year. But with the completion of the CNG Terminal, the cargo handling capacity of the Bhavnagar port will become 90-lakh metric tonnes per annum.

“It should be significant to mention here that Bhavnagar has connectivity of the Broad-gauge Railways and National Highways too; as a result, the benefits of CNG terminal in transporting the goods will also be available to northern and western regions of the country,” read the statement.

To enable the development of the CNG terminal, the Bhavnagar port will see dredging in channel and port basin, construction of two lock-gates and infrastructure facilities for CNG transportation on shore. To be completed in nearly four-and-half years, the CNG terminal will be built in multiple phases with the first estimated to cost US $180m.