SHV Energy, on Thursday, said it has invested ₹500 crore to expand the capacity of its Tuticorin (Tamil Nadu) liquefied petroleum gas (LPG) storage terminal by 30,000 tonnes.
“The expansion ensures LPG supply to the Indian market, primarily through our Indian subsidiary, Supergas. SHV Energy’s Singapore-based trading unit, S&RM (Supply & Research Management) will also supply third parties through the Tuticorin terminal,” SHV Energy’s CEO, Bram Graber told businessline.
Graber, who is also a member of the World LPG Association (WLPGA) Board of Directors, is in India to attend the World LPG 2022. He inaugurated the Tuticorin terminal on Thursday.
“Our strategy for expanding this terminal is to ensure that our customers in Tamil Nadu have easy and affordable access to LPG. This expansion will allow us to offer Government-run oil companies both the LPG and the storage facilities they need, thereby, optimising logistics and strengthening the overall LPG landscape in India,” he said.
In Indian markets
Appreciating India’s efforts towards a transition to clean energy sources, Graber pointed out that LPG will aid in accelerating India’s long-term energy needs and will support the transition away from polluting fuels, such as coal and oil.
With a pan-Indian presence, Supergas has access to 7 import terminals, 20 filling plants, and an intricate network of franchisees and auto LPG stations serving domestic, commercial, industrial, and auto fuel segments. Commercial and industrial consumers account for around 90 per cent of its LPG volumes.
On the LPG market in India, Supergas, CEO, Santanu Guha said, “The total LPG market in India is around 30 million tonnes, of which the Industrial & Commercial (I&C) accounts for around 6 per cent share. Supergas accounts for 20 per cent market share of I&C. The Indian LPG market is predominantly into cooking gas, but we believe that the potential of using LPG for I&C is massive.”
LPG is also much more accessible in India and can more easily reach areas that natural gas cannot reach. It also has many important applications, from being used as a cooking gas, for transportation, and increasingly used in Industry, he added.
“We look forward to further deregulation of the market to ensure increased investment in LPG infrastructure in support of India’s long-term energy needs,” Guha said.