Goa's Energy Game-Changer: Rs 5,000 Crore LPG Terminal to End Supply Woes

Goa partners with ANVI for a Rs 5,000 crore LPG terminal at Mormugao Port to ensure energy security and create 2,450 jobs.

KRISHNVEER SINGH30 October 20263 min read1 viewBusiness
Goa's Energy Game-Changer: Rs 5,000 Crore LPG Terminal to End Supply Woes

In a massive move to secure its energy future and shield itself from global supply shocks, the Goa government has signed a Memorandum of Understanding (MoU) with ANVI, a Dubai- and India-based energy trading group. The deal, inked during the Vibrant Goa Global Business Summit 2026, paves the way for a state-of-the-art LPG import and storage terminal at Mormugao Port with a projected investment of Rs 5,000 crore.

Ending the Reliance on Road Transport

For years, Goa has been heavily dependent on neighboring states for its Liquefied Petroleum Gas (LPG) needs, with the bulk of supplies arriving by road from Mangalore. This vulnerability was starkly exposed in March, when disruptions caused by the closure of the Strait of Hormuz halted shipments from the Gulf region.

The impact was felt across the state: commercial LPG supplies plummeted to just 20 per cent of normal levels, and households saw their cylinder refill intervals stretch from 15 to 25 days. Reflecting on this crisis, Ashutosh Verma, the founder of ANVI, noted that the state learned the hard way what happens when stocks run low and ships stop arriving. This new terminal is designed to ensure such a crisis never repeats.

Project Blueprint: Capacity and Reserves

The ambitious project will be rolled out in two phases, involving the construction of an LPG berth, extensive storage facilities, and a connecting pipeline to Mormugao Port.

Phase One Highlights:

  • Storage Capacity: Approximately 65,000 tonnes, which covers eight to nine months of Goa's current annual consumption (estimated at 80,000 to 100,000 tonnes).
  • Emergency Buffer: A dedicated reserve of at least 7,500 tonnes—enough for 30 days of demand—will be maintained. This reserve will be under the strict control of the state government.

Ashutosh Verma emphasized that in times of crisis, the priority will be local needs, stating that the first cylinders will go to "a Goan kitchen, a Goan shack or a Goan trawler."

Beyond Goa: A Regional Energy Hub

Once fully operational, the terminal's ambitions extend beyond state borders. It is expected to handle roughly three million tonnes of LPG annually, serving not only Goa but also parts of Maharashtra and Karnataka.

Crucially, the facility will allow India to diversify its energy sources. By enabling imports from the United States and other regions outside the Gulf, the project reduces the strategic risk associated with relying on a single geographic corridor for energy.

Boosting Employment and Skill Development

The economic ripple effects of the project are expected to be significant, with the creation of approximately 2,450 direct, indirect, and induced jobs. To ensure the local population benefits, at least 80 per cent of permanent direct positions will be reserved for Goans.

Adding to the long-term impact, the MoU includes the establishment of the Goa Institute of LPG and LNG Technology. Chief Minister Pramod Sawant highlighted that this institute will train up to 500 individuals per year, building a specialized skill ecosystem to support India's goal of energy sovereignty.

The Road Ahead

While the agreement marks a significant milestone, it remains non-binding. The project's progression is subject to statutory approvals, detailed technical studies, and land allocation. According to ANVI, the first phase is expected to take between 30 to 36 months to complete once all approvals are in place, with the final timeline and investment figures to be solidified in a detailed project report.

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