The Gujrat government has sanctioned Rs 19-billion for the world’s first compressed natural gas (CNG) terminal to be set up at Bhavnagar. The terminal will have an annual capacity of 1.5 million tonnes (mt) and will be developed by a consortium of Padmanabh Mafatlal Group and Netherlands-based Boskalis.

The brownfield project will entail an investment of 13 billion in the first phase. The government has further plans to set up a 4.5 mt liquid cargo terminal, container and white cargo terminal, and Ro-Ro terminal at Bhavnagar. The project will also involve dredging and construction of two lock gates in the channel and port basin. Further, infrastructural facilities will also be set up at the shore for CNG transportation. As a result, the Bhavnagar port’s annual cargo capacity will increase to 9 mt.

The terminal will generate huge employment opportunities in Bhavnagar and nearby areas. After the commissioning, Gujrat will become the only state in India to have both CNG and liquefied natural gas (LNG) terminals. At present, Gujarat has LNG terminals at Dahej and Hazira