Gujarat to get world’s first CNG terminal: Why this Rs 4000-crore project matters

Prime Minister Narendra Modi, on a two-day trip to Gujarat, laid the foundation stone for the terminal expected to be operational in 2026. The Bhavnagar project will be developed through a public-private partnership with Padmanabhan Mafatlal Group and the UK's Foresight Group taking the lead

FP Explainers September 30, 2022 15:27:19 IST
Gujarat to get world’s first CNG terminal: Why this Rs 4000-crore project matters

Prime Minister Narendra Modi

Prime Minister Narendra Modi on Thursday laid the foundation stone for the first compressed natural gas (CNG) terminal in the world in Gujarat’s Bhavnagar.

The prime minister, on a two-day trip to Gujarat, inaugurated multiple developmental initiatives worth over Rs 5,200 crore in Bhavnagar alone including package 7 of Sauni Yojna Link 2, 25 MW Palitana Solar PV Project, APPL Container (Aawadkrupa Plastomech Pvt. Ltd.) project.

He also laid the foundation stone of projects including package 9 of Sauni Yojna Link 2, Chorvadla Zone water supply project, among others.

Modi prior to his visit tweeted:


The city of Bhavnagar has a glorious history and exceptional culture. At a programme in Bhavnagar, development works worth Rs. 5200 crore will either be dedicated to the nation or their foundation stone would be laid. These works are linked to energy, water supply and ports.

— Narendra Modi (@narendramodi) September 28, 2022

Let’s take a closer look at the world’s first CNG gas terminal in Bhavnagar:

Origins of project

As per Indian Express, the project was first proposed during the January 2019 Vibrant Gujarat summit when a consortium of London-based Foresight Group, Mumbai-based Padmanabh Mafatlal Group and Rotterdam-based Boskalis signed a Memorandum of Understanding (MoU) with Gujarat Maritime Board (GMB) for development of the CNG terminal.

A project proposal for the development of the north side of Bhavnagar port and allied infrastructure, which includes a CNG terminal, was then submitted in 2019.

The GMB in September 2020 issued a Letter of Intent (LoI) in the name of Bhavnagar Port Infrastructure Pvt Ltd, a special purpose vehicle formed by the consortium.

Details and importance

According to Financial Express, the CNG terminal will come up at an estimated cost of Rs 4,000 crore.

Gujarat to get worlds first CNG terminal Why this Rs 4000crore project matters

Representational image. News18 Gujarati

It will be developed through public-private partnership (PPP) – the Mumbai-based Padmanabhan Mafatlal Group and the UK’s Foresight Group will take the lead and the Gujarat Maritime Board (GMB), currently in charge of Bhavnagar Port, will lend support.

The project will have a cargo handling capacity of 1.5 million metric tonnes per annum (MMTPA), as per the report.

It is expected to be operational by 2026.

A senior official told the newspaper the terminal will have the fourth largest lock gate system in the world  as well as an ultra-modern container terminal, a multipurpose terminal, a Ro-Ro terminal, and a liquid terminal.

As per ANI, the prime minister also laid the foundation stone for the brownfield port in the city, which will be have the state-of-the-art infrastructure for the CNG terminal.

The port will have an ultra-modern container terminal, multipurpose terminal, and liquid terminal with direct door-step connectivity to the existing roadway and railway network, as per ANI.

The project is vital as the port is close to the Dholera Special Investment Region (SIR) and is expected to serve industries that set up shop in the region, as per Indian Express.

The port is already connected to the northern hinterland through a railway line.

Bhavnagar can emerge as centre for metal scrapping’

Modi also inaugurated a regional science centre in Bhavnagar, spread over 20 acres and built at a cost of around Rs 100 crore. The centre has several theme-based galleries including the marine aquatic gallery, automobile gallery, and the Nobel Prize gallery.

The centre will provide a creative platform for children.

“The new Vehicle Scrapping Policy can improve waste management in the country. Bhavnagar can emerge as a centre for metal scrapping for not just the country but for other nations across the world,” Modi said.

“India will lead the charge in developing a robust circular economy. As Bhavnagar emerges as a scrapping hub, the metal from ships can be reused for large construction projects. This will create many opportunities for the youth,” he added.

The prime minister said that Bhavnagar is emerging as an important region for port-led development.

“Multi-modal connectivity will play an important role in increasing maritime trade opportunities in the region,” he said.

Gujarat to get worlds first CNG terminal Why this Rs 4000crore project matters

Representational image. News18 Gujarati

“The Renewable energy, Space and semiconductor industry being developed in Dholera will benefit Bhavnagar as well,” Modi added.

Stating that the world needs a “reliable” supplier for containers, Modi said that the containers manufactured in Bhavnagar will not only meet this global demand but also create employment opportunities.

The Prime Minister said that the region is becoming a hub for the fulfilment of energy requirements of the country and Gujarat.

“Today the coastline of Gujarat is emerging as a synonym for renewable energy and hydrogen ecosystem. We have also tried to make
Saurashtra an important centre of energy. Whatever is required to fulfil the energy requirements of Gujarat and the country, this region is becoming a big hub for it,” he said.

The prime minister earlier Thursday laid the foundation stone and dedicated various projects worth more than Rs 3,400 crore in Surat.

Prior to this, the prime minister held a roadshow. A huge crowd gathered to welcome the prime minister as his cavalcade moved forward.

With inputs from agencies

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