The government of Gujarat has given its approval for a compressed natural gas (CNG) terminal in Bhavnagar with a proposed investment of Rs 1,900 crore.
The approval was given by the Gujarat Infrastructure Development Board headed by Chief Minister of Gujarat Vijay Rupani. It would be the world's first CNG port terminal. It project be developed jointly by UK-headquartered Foresight Group and Mumbai-based Padmanabh Mafatlal Group.
The Gujarat Maritime Board (GMB) had signed a memorandum of understanding (MoU) with the Foresight Group to set up this port terminal at Bhavnagar in the Vibrant Gujarat Summit held in January 2019. Apart from the CNG terminal, the investors will also develop a Ro-Ro terminal, liquid cargo terminal and container terminal at Bhavnagar port with a cumulative investment of Rs 1,900 crore.
The proposed CNG port terminal will have a capacity to handle 1.5 million tpa. The GMB manages the existing port at Bhavnagar having a capacity to handle three million tpa cargo, and the new terminals will take the overall capacity to nine million tpa.
While the consortium will invest Rs 1,300 crore in Phase-I, Rs 600 crore will be invested in Phase-II. To develop CNG and other terminals on the north side of the existing port will require major modifications in the existing infrastructure, including dredging in water channel of port basin, construction of two lock gates and offshore infrastructure for CNG transportation.