June 1, 2017 [OPIS] - Itochu Corp. is set to enter into an agreement with Hindustan Aegis LPG to procure a 19.7% stake at the West Bengal terminal, which is slated to come online in July 2017.
On top of paying between $38-39 million for the stake, the Japanese trading house will also pay a leasing fee for the usage of the facility going forward.
The terminal is said to have a storage capacity of 25,000 mt and it can handle between 1.5-2 million mt of LPG per annum, according to one source.
Itochu is planning to grow its footprint in the second largest LPG importing country as the Indian government continues its efforts to promote cleaner fuel use.
India’s LPG consumption was estimated at around 21.18 million mt last year, with the January-April consumption volume totaled at around 7.33 million mt.
In addition, the South Asian country will continue to rely on LPG imports to meet its robust demand, with last year’s imports above the 10-million-mt mark at around 10.14 million mt.
LPG imports into India in 2017 are projected at around 11-12 million mt, with imports in the first trimester at around 4.04 million mt, making up around 55% of the country’s consumption over the same period.
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