BW LPG Limited, a global leader in the ownership and operation of LPG vessels, confirmed today that it has ceased all its investment in a planned LPG onshore import terminal at Jawaharlal Nehru Port Association (JNPA) in Navi Mumbai, India. The decision was revealed in a statement from the company on May 20.

The ambitious project, initiated through a partnership agreement with BW Confidence Enterprise Private Limited, a joint venture with Confidence Petroleum India Ltd. and Ganesh Benzoplast Limited, aimed to establish a state-of-the-art cryogenic LPG storage facility at JNPA. BW LPG's initial investment in the venture was estimated to be approximately &10 million, reflecting its previous commitment to expanding its presence in India's energy sector.

However, the company's management has opted to "strengthen its strategic focus on the company’s core value drivers—shipping and trading." This strategic realignment will see BW LPG scaling back activities within its infrastructure segment, a move designed to optimize resource allocation and enhance operational agility in a volatile global business environment. Consequently, the investment in the JNPA onshore LPG import terminal has been discontinued, and BW LPG will cease its involvement in the terminal’s development.

Kristian Sørensen, CEO at BW LPG, expressed gratitude to the Indian partners for their collaboration during the planning phase. "This decision was not made lightly but reflects a realignment of our business priorities in a changing environment," Sørensen stated. He further emphasized, "India remains a vital market for BW LPG, and we continue to support its energy transition through other strategic initiatives." This statement suggests that while the onshore terminal project is off the table, BW LPG remains committed to India, likely through its core shipping and trading operations which facilitate LPG imports into the country.

The cessation of this investment marks a pivot for BW LPG, which has traditionally sought to integrate various aspects of the LPG value chain. The company, known as the world’s leading owner and operator of LPG vessels with a fleet exceeding 50 Very Large Gas Carriers (VLGCs) and a total carrying capacity of over 4 million CBM, has five decades of experience in LPG shipping. Its operations also include an in-house LPG trading division and investments in LPG downstream distribution. This decision highlights a move to consolidate and concentrate on its core competencies in the current economic climate.

BW LPG is closely associated with BW Group, a prominent global maritime company with a diverse portfolio encompassing shipping, floating infrastructure, deepwater oil and gas production, and new sustainable technologies. BW Group, founded in 1955 by Sir YK Pao, manages a vast fleet of over 450 vessels, including the world's largest gas fleet of 200 LNG and LPG ships. The group also holds investments in renewable energy sectors such as solar, wind, batteries, and water treatment.