Shapoorji Pallonji, Royal Vopak to set up LPG terminal in Gujarat

      10/30/2018

The Shapoorji Pallonji Group has tied up with Dutch firm Royal Vopak to build a Rs 1,400 crore import terminal and storage facility for liquified petroleum gas (LPG) and oil products near Junagadh, in Gujarat, said two executives aware of the development.

SP Ports Pvt Ltd, a part of Shapoorji Pallonji Group, and Vopak India BV, a subsidiary of Royal Vopak, plan to jointly execute the project at Chhara-Sarkhadi near Junagadh through their joint venture West Coast Liquid Terminal Pvt. Ltd (WCLTPL), the people mentioned above said on condition of anonymity.

The terminal and storage facility will be housed at a port in Chhara-Sarkhadi being built by Simar Port Pvt. Ltd, a Shapoorji Pallonji Group company. “The terminal is being planned considering the increasing demand for LPG in India. The initial capacity of the terminal could be up to 5 million tonnes per annum (mtpa) with an expandable capacity of 10 mtpa,” said one of the executives cited above.

LPG demand in India has risen after the introduction of the Pradhan Mantri Ujjwala Yojana (PMUY). India added 115.3 lakh new domestic LPG customers between April and June 2018, according to the petroleum planning and analysis cell, the data arm of the ministry of petroleum and natural gas.

The terminal will import LPG, petroleum products, oil products and vegetable oil, and will have a storage and distribution terminal along with a jetty within the port, according to project details submitted to the Gujarat government.

The project will require about 98 acres. The maximum throughput envisaged is 10 million metric tonnes per annum. Royal Vopak is the world’s leading independent tank storage company.

Liquid propane, butane and LPG will be imported by using very large gas carriers and later heated, blended and dosed with odorant to make LPG for distribution via trucks and pipelines. Petroleum, oil and lubricants will be imported by using ocean moving petroleum oil tankers and distributed through trucks. Vegetable oil will be imported through ocean moving vegetable oil tankers and distributed by using trucks.

Refrigerated propane and butane will be received through ships and will be first stored in refrigerated, full containment double walled storage tanks separately. They will then be heated, pumped to mounded tanks and stored separately. Pressurised propane and butane will be transferred to static mixer for blending and making the mixed LPG. Pressurised propane, butane and mixed LPG will be dispatched from terminal through road tankers and through pipelines. POL and vegetable oils will be received in the terminal through ships.

WCLTPL has identified Chhara Port as its depth is suitable for large vessels. The port also has sufficient land to develop the proposed LPG and liquid terminal.

A dedicated jetty will be developed for unloading propane, butane, LPG and liquid products . The optimum size of vessels operating at the proposed jetty would be 1,00,000 dead weight tonnage.

The Shapoorji Pallonji Group said, “The group continuously explores various opportunities for its businesses. On the details sought, we do not wish to respond to market speculations and have no comments to offer.”