BW LPG Limited to Focus on Core Value Drivers, Terminates $10M India Investment

BW LPG Limited has terminated its $10 million investment in India, focusing on core value drivers amidst market uncertainties. The company had planned an LPG onshore import terminal at Jawaharlal Nehru Port Association in Navi Mumbai, but will no longer be involved. BW LPG owns and operates a fleet of over 50 LPG vessels and delivered a net profit of $67 million in Q1 2025. The company affirmed its commitment to returning value with a $0.28 dividend and share repurchases.

BW LPG Limited (BWLPG.OL, NYSE ticker code: “BWLP”) has announced the cessation of its $10 million investment in the planned LPG onshore import terminal at Jawaharlal Nehru Port Association (JNPA) in Navi Mumbai, India. The project, initiated through a partnership agreement with BW Confidence Enterprise Private Limited (BW Confidence) and other entities, aimed to develop a cryogenic LPG storage facility. However, BW LPG has decided to discontinue its involvement due to market uncertainties and a strategic focus on its core value drivers—shipping and trading [1].

The decision to cease the investment aligns with BW LPG's strategy to concentrate on its primary business drivers. The company, which owns and operates a fleet of over 50 Very Large Gas Carriers (VLGCs), delivered a net profit of $67 million in Q1 2025. BW LPG affirmed its commitment to returning value to shareholders with a $0.28 dividend and share repurchases [1].

Kristian Sørensen, CEO at BW LPG, stated, “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” [1].

BW LPG's decision to withdraw from the project is part of the company's efforts to maintain operational agility and ensure the effective allocation of its assets. The Indian Government has recently asserted its right to pre-empt oil and natural gas production in the event of a national emergency, which may have influenced BW LPG's strategic decision [2].

References:
[1] https://www.businesswire.com/news/home/20250519174799/en/BW-LPG-Limited-Ceases-Investment-in-LPG-Onshore-Import-Terminal-Project-in-India
[2] https://finance.yahoo.com/news/bw-lpg-discontinues-10m-investment-153103053.html