Confidence Petroleum, BW LPG JV to Build Rs 6.50bn LPG Import Terminal at JNPT

Nagpur-based LPG major Confidence Petroleum India is planning to construct an onshore LPG (Liquefied Petroleum Gas) import terminal at the Jawaharlal Nehru Port Trust (JNPT) along with its Norway-based joint venture partner BW LPG. The companies are looking to spend Rs 6.50 billion on the project, which is expected to be operational by 2026.

The terminal will have a capacity of 62,000 metric tonnes, the companies said during a press conference on February 19. They also expect the infrastructure to enhance the storage capacity and distribution capabilities for LPG in India.

The companies announced their joint venture (JV) on February 19 and earmarked investments worth Rs 20 billion for upstream and downstream expansions, to be spent in the next three years. Confidence Petroleum plans to fund the capex through internal accruals, said Nithin Khara, Chairman of Confidence Group.

Khara flagged accruals worth Rs 2.50 billion from the current financial year and targets earnings before interest, taxes, depreciation (EBITDA) of Rs 4 billion next year. BW Energy, which holds about 8 percent stake in Confidence group, had earlier invested $30 million to support the infrastructure plans.