FORESIGHT Group, a London-based shipping and oil-drilling business, has received approval to develop a compressed natural gas terminal at the Bhavnagar port in Gujarat, India.
The project, with partners Royal Boskalis Westminster of the Netherlands and family-owned Padmanabh Mafatlal Group of India, is estimated to cost about $500m, Ravi Mehrotra’s Foresight said in a statement. The companies have been given the rights to build and operate the port for 30 years with an option to extend for a further 20 years, it said.
“With a favourable investment scenario and ever-increasing demand of natural gas in India as well as the potential to tap nearby accessible stranded offshore gas elds in the Gulf region, Foresight Group has envisioned to enter into the CNG value chain business,” it said.
It will invest in the development of an CNG export terminal for compression and loading in the Gulf region, build a CNG carrier for transportation, and an Import terminal in western India for CNG unloading, decompression and distribution, it added.
It is in advanced discussions with a ship designer and classication society to build an optimised CNG vessel with the aim of delivering competitively priced natural gas to India, and has already signed a memorandum of understanding with a natural gas producer for supplies as well as development of the export facility, the company said, without identifying the counterpart.
Apart from the CNG terminal, the consortium will develop an all-weather, round-the-clock port, capable of handling vessels greater than 12,000 dwt. It includes dedicated terminals for liquids, chemicals, ro-ros, and general cargo.
Phase 1 of the project is expected to be completed by 2025 with throughput capacity of 10m tonnes per year, while phase 2, which is due to be completed by 2030, should see volumes double.