VLGC owner BW LPG has created a joint venture with Confidence Petroleum India and made an investment to develop and operate an LPG onshore import terminal in India.
BW LPG and Confidence agreed to establish a 50/50 JV named BW Confidence Enterprise Private Limited in India, to explore investment opportunities in onshore LPG import infrastructures.
Based in Mumbai, the JV will collaborate with BW LPG’s trading division as well as India subsidiary, BW Product Services and BW LPG India respectively, to source and deliver LPG from the international market to meet Confidence’s and India’s growing LPG import needs.
Furthermore, BW LPG will invest around $30m in Confidence through a preferential allotment of equity shares. These shares will constitute 8.50% of the issued and paid-up share capital of Confidence on a fully diluted basis, and BW LPG has the option to increase its shareholding.
BW LPG will also invest $10m to jointly develop and operate a new LPG onshore import terminal at Jawaharlal Nehru Port Association Port in Navi Mumbai, India. The agreement, signed between BW Confidence and Ganesh Benzoplast, will fund the construction of the largest cryogenic LPG storage terminal facility at the port.
BW Confidence will own 55% of the terminal facility. When completed, it will be able to fully offload the latest fourth-generation 93,000 cu m VLGCs in a single discharge operation and will also have the potential to connect to the Uran Chakan pipeline to ensure LPG supply into India. Construction work on the terminal will begin in the first half of 2024 and is expected to be fully operational in 2026.
BW LPG’s latest combined investment of approximately $40m in India will be funded by returns from investments in BW India.
