BW LPG has announced the cessation of its investment in the planned liquefied petroleum gas (LPG) onshore import terminal at Jawaharlal Nehru Port Association (JNPA) in Navi Mumbai, India.

The project, a joint venture (JV) with Confidence Petroleum India and Ganesh Benzoplast, announced in February last year, aimed to develop a cryogenic LPG storage facility.

BW LPG had committed $30m (S$38.66m) to Confidence Petroleum as part of the alliance, through a preferential allotment of equity shares, amounting to an 8.5% stake on a fully diluted basis.  

The decision aligns with BW LPG's strategy to concentrate on its primary business drivers – shipping and trading.

BW LPG CEO Kristian Sørensen said: “We are deeply grateful to our partners in India for their commitment and collaboration throughout the project’s planning phase. This decision was not made lightly but reflects a realignment of our business priorities in a changing environment. India remains a vital market for BW LPG, and we continue to support its energy transition through other strategic initiatives.”

The initial investment for the project was approximately $10m. However, due to heightened market uncertainties and a strategic shift towards optimising resources, BW LPG has decided to withdraw from the project.

This move is part of the company's efforts to maintain operational agility and ensure the effective allocation of its assets.

Furthermore, the Indian Government recently asserted its right to pre-empt oil and natural gas production in the event of a national emergency.

This is part of the draft rules under the recently amended oilfields legislation, which aims to protect national interests during crises.

The Ministry of Petroleum and Natural Gas is seeking feedback on these draft rules, which update provisions from the 1948 Act, aiming to boost domestic production, attract investment and support India's energy transition goals.