Prime Minister Narendra Modi will lay the project’s foundation stone at Bhavnagar on September 29 three years after a formal agreement was signed to build the world’s first CNG terminal there, according to an official release on Saturday.
During the 2019 Vibrant Gujarat Global Business Summit, The Foresight Group and the Gujarat Maritime Board (GMB) signed a Memorandum of Understanding (MoU) for the development of a CNG terminal in Gujarat. The Consortium presented a project proposal to GMB in December 2019 for the construction of a CNG terminal and other terminals on the north side of the Bhavnagar Port.
The project proposal was approved by the Gujarati government, and in September 2020, GMB issued a Letter of Intent (LOI) in the name of the consortium’s special purpose vehicle, Bhavnagar Port Infrastructure Private Limited (BPIPL).
With more cargo handled at shorter inland distances, the proposed port will also produce a number of financial advantages and cost savings. Up to 1,100 people will benefit from the port’s direct and indirect employment opportunities, which will also grow as a result of the port.
The CNG Import Terminal will also offer another alternative energy source to meet the rising demand for clean energy. The promoters and RAK Gas, Ras Al Khaimah, UAE, have already signed a contract for the supply of CNG and the construction of the CNG Export Terminal. Once CNG is in operation, it will have a revolutionary supply mechanism that will allow India to access small-scale and stranded gas volumes that have not yet been used.