BPCL in talks with global shipping lines to source LNG from upcoming bunkering facility
Panaji: State-run Bharat Petroleum Corporation Ltd is in talks with several global shipping companies, including Danish shipping giant Maersk, Italian major Mediterranean Shipping Company SA (MSC) and Germany’s HAPAG-Lloyd, to obtain crude oil from its planned liquefied natural gas (LNG) bunkering facility at Kerala’s Vizhinjam port.
In an interview MintRahul Tandon, president of BPCL’s gas business, said global trading giant Vitol is in talks with possible clean fuel buyers. Fuel supply at such facilities is largely carried out through forward contracts.
“We are all set. We are now engaging with customers and acquiring customers… with global cruise lines such as Maersk, Hapag and MSC, among others. Vitol is talking to customers and arranging customers,” he said.
Queries sent to Maersk, MSC, HAPAG and Adani Ports on Wednesday evening remained unanswered at the time this news was published.
India’s first LNG refueling facility
Tandon said BPCL is also considering chartering a ship to set up what will be India’s first LNG bunkering facility. He added that the facility is in line with the government’s vision of developing India as a maritime hub as it offers a clean bunkering option to ships in the Indian Ocean region. He noted that currently the nearest LNG refueling facility is in Singapore. Other facilities are in Europe, with Rotterdam providing the largest capacity.
Tandon is optimistic about demand given the shipping industry’s shift towards cleaner fuels such as LNG and green methanol. “These large ship containers have the capacity to carry 5,000 to 10,000 cubic meters (LNG). We are currently exploring to charter a 12,000 or 18,000 cubic meter ship,” he said.
Strategically located near the east-west international shipping corridor, the new facility is expected to make Vizhinjam a major hub for low-carbon shipping in the Indian Ocean region.
The initiative was formalized in October 2025 through a memorandum of understanding (MoU) signed by Adani Vizhinjam Port Private Limited (AVPPL) and Bharat Petroleum Corporation Limited (BPCL) at the India Shipping Week 2025 held in Mumbai. The state-run refinery and oil marketing company also signed an MoU for LNG bunkering and dual-fuel vessels at Cochin Port in Kerala.
“We have been working on this for the past year and a half, working closely with the Directorate General of Maritime Affairs and the explosives department to make sure the rules, SoPs and everything are in place. We got the bunkering license about 2-3 months ago,” said Tandon.
LNG is in the spotlight
LNG has recently begun to attract more attention as a ship fuel not only in Europe but also in Asia and the USA. Using LNG on ships reduces sulfur oxide emissions by 90% to 95%. It can also reduce greenhouse gas emissions by up to 23% with modern engine technology, according to global independent assurance and risk management provider DNV.
In October, Prime Minister Narendra Modi said India, with over 7,500 km of coastline and an expanding network of globally competitive ports, is poised to become a major maritime hub offering not just connectivity but value-added services, green maritime initiatives and industry-friendly policy frameworks. He urged local and foreign investors to invest in India’s maritime space.
(Rituraj Baruah is in Panaji on the invitation of the union ministry of petroleum and natural gas.)
