Gujarat: PM Modi To Lay Foundation Stone Of World's First CNG Terminal At Bhavnagar On 29 September

Prime Minister Narendra Modi will lay the foundation stone of the World’s First CNG terminal on 29 September.

The CNG project is a part of an ambitious mega project of brownfield expansion of Bhavnagar port which will also be inaugurated by the Prime Minister on same day.

The proposed development of brownfield port terminal is planned in the northern part of existing Bhavnagar port in Gujarat.

Brownfield Port

The brownfield port will be developed at the cost of Rs 4,024 crore and will house the world’s first CNG terminal along with world’s fourth largest lock gate system.

The port will also have a container terminal, multipurpose terminal, and liquid terminal with direct door-step connectivity to the existing roadway and railway network connecting to the dedicated freight corridor and the northern hinterland of the country.

In addition to the CNG terminal, the port will also cater to the future needs and demands of various upcoming projects in the region such as vehicle scrapping, container manufacturing and Dholera Special Investment Region in particular.

The port will help generate direct and indirect employment for up to 1,100 people and will also increase the ancillary port related services opportunities.

The construction of the port is expected to commence in the first half of 2023 and the port will be operational in 2026.

CNG Terminal

The primary objective of the CNG terminal will be to develop CNG receiving infrastructure facilities for India through Gujarat coast.

The Foresight Group from London who are in the CNG transport internationally, selected the Bhavnagar site due to presence of a cross-country CNG pipeline about 12 km from the Bhavnagar port.

The promoters have already signed an agreement for the supply of CNG and the development of the CNG Export Terminal with RAK Gas, Ras Al Khaimah, UAE.

The supply mechanism of CNG once operational will be revolutionary, enabling India to tap small-scale and stranded gas volumes which are yet to be utilised. 

Gujarat, thus, will be the only state in the country, which will have terminals for both CNG and LNG.

The state currently houses three LNG (Liquified Natural Gas) terminals at Dahej, Hazira and Mundra. One more LNG terminal is currently under construction at Chhara port which is likely to be completed by end of calendar year 2022.

A floating storage and regasification units (FSRUs) terminal, at Jafrabad, is currently under development and is expected to come online in the last quarter of 2022.

The Memorandum of Understanding (MoU) to set up the CNG terminal was signed between Gujarat Maritime Board (GMB) and Foresight Group during the Vibrant Gujarat Global Business Summit 2019.

Later in December 2019, a Consortium of Foresight Group, Mumbai-based Padmanabh Mafatlal Group and Dutch dredging company Bosaklis had submitted a project proposal to GMB for CNG Terminal and other infrastructure projects at Bhavnagar port.

The Gujarat government, through GMB, issued the Letter of Intent (LoI) in September 2020 in the name of Bhavnagar Port Infrastructure Private Limited (BPIPL), a special purpose vehicle formed by the consortium.

Also Read: This Is Why Mamata Banerjee’s Dream ‘Tajpur Port’ Project Is Unlikely To Take Concrete Shape