BW LPG forges JV with Confidence Petroleum, invests in LPG onshore terminal in India

Singapore-based owner and operator of LPG vessels BW LPG Limited has signed agreements with Confidence Petroleum India Limited, including a 50/50 Joint Venture (JV) called BW Confidence Enterprise Private Limited to invest in the development of onshore LPG import infrastructure in India.

This JV, based in Mumbai, will collaborate with BW LPG’s trading division and India subsidiaries BW Product Services and BW LPG India respectively to source and deliver LPG internationally.

In addition, BW LPG will invest approximately $30 million in Confidence through a preferential allotment of equity shares, constituting 8.50% of Confidence’s share capital. BW LPG can increase its shareholding, pending shareholder approval and customary closing conditions. This investment will support Confidence’s expansion in LPG downstream assets.

Another investment of approximately $10 million will fund a joint project with Ganesh Benzoplast to develop a new LPG onshore import terminal at Jawaharlal Nehru Port Association (JNPA) Port in Navi Mumbai, expected to be operational in 2026.

The deal will fund the construction of the largest cryogenic LPG storage terminal facility at JNPA Port. BW Confidence will own 55% of the JNPA terminal facility.

When completed, it will be able to fully offload the latest fourth-generation Very Large Gas Carriers (93,000 cbm) in a single discharge operation and will also have the potential to connect to the Uran Chakan pipeline. Construction work on the terminal will commence in 1H 2024.

“These agreements represent a significant milestone in our commitment to grow in India, and underscore our confidence in the potential of the domestic LPG market as well as our JV partners. I extend my gratitude and congratulations to colleagues and counterparts for their dedicated efforts, which have culminated in today’s achievements,” Kristian Sørensen, BW LPG CEO, said.

“We have generated strong and stable returns from our Indian subsidiary, and we are ready to advance our growth trajectory along the value chain, to generate even better returns for our shareholders.”

India, the world’s most populous country and the second-largest LPG consumer, has an LPG penetration rate of over 99 percent for its 1.4 billion people. LPG plays a crucial role in India’s cleaner energy mix, replacing traditional fuels for cooking and heating. Terminals like the one at JNPA Port are essential for a stable LPG supply into India.