Dubai-based ANVI Global has signed an agreement to develop an LPG import and storage terminal in Mormugao, Goa, for ₹5,000 crore. The facility, with a 3-million-tonne annual handling capacity, aims to source gas from the US to potentially lower supply costs. Investors may monitor the project’s progress, specifically regarding land acquisition and regulatory approvals, which are key to meeting the planned three-year timeline.
Dubai-based energy trader ANVI Global has entered into an agreement with the Goa government to build a significant LPG import and storage terminal at Mormugao. The project, valued at ₹5,000 crore, is aimed at strengthening the supply chain for cooking gas in western and southern India, with a specific focus on serving industrial markets in Maharashtra and Karnataka.
The terminal is designed with an annual capacity to handle three million tonnes of LPG. The facility will include a deep-draft berth, a network of pipelines, and a total storage capacity of 258,000 cubic metres. Additionally, the plan includes a 7,500-tonne strategic reserve, which the company states is intended to provide a 30-day supply buffer for Goa to protect against global supply disruptions.
A key part of the company's strategy is to source LPG from the US Gulf Coast rather than traditional suppliers in the Middle East. By shifting the procurement source, ANVI Global estimates it can achieve a landed-cost advantage of 10% to 15%. This is a strategic effort to diversify India's energy imports and reduce the risks associated with the geopolitical volatility often seen in the Strait of Hormuz. India remains one of the world's largest importers of LPG, and such projects are significant as they help move towards more stable and cost-effective energy sourcing.
While the scale of the investment is substantial, the project faces typical infrastructure hurdles that investors and industry observers often track. The construction timeline is set for three years, but this remains dependent on securing land and obtaining necessary environmental and regulatory clearances. Infrastructure projects in coastal zones, particularly in Goa, often undergo rigorous environmental scrutiny. Delays in land acquisition or permitting are common risks that could affect the project's timeline and overall project cost.
Furthermore, the entry of a new terminal operator involves navigating a market that is largely served by established public sector oil marketing companies. These companies already have deep-rooted logistics networks, pipelines, and distribution reach. ANVI Global will need to build efficient road and sea-based distribution networks to ensure that the gas imported at Mormugao can effectively reach the target markets in the hinterland. The ultimate success of the project will depend on the company's ability to execute this construction on time and maintain the projected cost advantages through stable logistics and competitive procurement, especially given the long shipping distances from the US coast.