Oman-based National Gas Company (NGC) will partner with Singapore-headquartered Petredec to set up an LPG import and storage terminal at Krishnapatnam Port at an investment of ₹400 crore.

The project will be set up under a JV company in India, NGC Energy India Pvt Ltd, in which NGC will have 60 per cent stake, and Petredec, an LPG trader, will hold the remaining 40 per cent.

The plan to set up an LPG terminal project comes on the heels of a growing demand for LPG in the country as also the favourable demand outlook over 10-15 years.

Generate jobs

The company broke ground for the proposed facility on Thursday and construction work is expected to commence soon. The foundation stone was laid by NGC Energy chairman Abdulla Suleiman Hameed Al Harthy. The LPG terminal project is expected to generate over 400 jobs, directly and indirectly.

“The project is expected to take 15-18 months for completion after securing all approvals. We expect to complete the facility during the first half of 2021,” Nalin Kumar Chandna, Chief Executive Officer, NGC, said here.

He said the company hoped to secure all clearances latest by next month.

The officials said Krishnapatnam Port provided several advantages to establish the project. These include the capability to receive large carriers and the logistics to reach the hinterland.

Storage capacity

The refrigerated LPG import and storage terminal will have a storage capacity of 30,000 tonnes and a throughput capacity of 1.4 million tonnes per annum for servicing PSUs and private sector companies in the hinterland.

The company expects its LPG terminal to help bridge the demand/supply gap in India as it aims to reach about eight million households in the hinterland. The terminal will also have a re-export facility to serve other markets.

India is the second-largest consumer and importer of LPG in the world. The LPG demand in India has been growing at seven per cent annually.