BW LPG Limited announced the signing of multiple definitive Agreements, viz. a Joint Venture (JV) with Confidence Petroleum India Limited ("Confidence"), an investment in Confidence; and an investment to develop and operate an LPG onshore import terminal in India. The first two Agreements were signed between Mr. Kristian Sorensen, CEO of BW LPG, and Mr. Nitin Khara, Chairman and Managing Director of Confidence Group; and the last Agreement was similarly signed between Mr. Sorensen, Mr. Khara, and Mr. Rishi Pilani, Chairman and Managing Director of Ganesh Benzoplast Limited.

BW LPG and Confidence have agreed to establish a 50/50 JV named "BW Confidence Enterprise Private Limited" ("BW Confidence") in India, to explore investment opportunities in onshore LPG import infrastructures. Based in Mumbai, the JV will collaborate with BW LPG's trading division as well as India subsidiary, BW Product Services and BW LPG India respectively, to source and deliver LPG from the international market to meet Confidence's and India's growing LPG import needs. BW LPG will invest approximately USD 30 million in Confidence through a preferential allotment of equity shares.

These shares will constitute 8.50% (8.50%) of the issued and paid-up share capital of Confidence on a fully diluted basis, and BW LPG has the option to increase its shareholding. The investment will support Confidence as it expands its capacity in LPG downstream assets. Confidence currently has about 60 LPG bottling and blending plants and over 200 auto LPG dispensing stations across India, and it envisions substantial future growth.

The preferential allotment by Confidence to BW LPG is subject to the approval of Confidence shareholders and customary closing conditions. BW LPG will also invest approximately USD 10 million to jointly develop and operate a new LPG onshore import terminal at Jawaharlal Nehru Port Association (JNPA) Port in Navi Mumbai, India. The Agreement, signed between BW Confidence and Ganesh Benzoplast, will fund the construction of the largest cryogenic LPG storage terminal facility at JNPA Port.

BW Confidence will own 55% of the JNPA terminal facility. When completed, it will be able to fully offload the latest fourth-generation Very Large Gas Carriers (93,000 cbm) in a single discharge operation and will also have the potential to connect to the Uran Chakan pipeline to ensure competitive and efficient supply of LPG into India. Construction work on the terminal will commence in 1H 2024 and is expected to be fully operational in 2026.

BW LPG's latest combined investment of approximately USD 40 million in India will be funded by returns from investments in BW India.