The Indian energy and chemical logistics industry is growing owing to increasing use of LPG, industrialization and the need for storage facilities. Increased volume is also providing growth opportunities to businesses engaged in terminals, pipelines and logistics operations.
Aegis Logistics is making forays in LPG logistics, liquid storage and special chemicals logistics business. The company is increasing its capacities at important ports as well as increasing logistics, pipeline operations and contracts.
JNPA J2 Expansion
Aegis is developing the J2 terminal at JNPA as one of its largest upcoming infrastructure projects. The project involves approximately 318,100 cubic metres of additional liquid storage capacity, 77,236 MT of LPG capacity and an LPG bottling plant with 35,000 MT of annual capacity. The total capital outlay is around Rs. 1,675 crore.
The first phase of around 100,000 cubic metres of liquid storage is expected to be commissioned in Q3 FY27. The additional infrastructure is expected to increase Aegis' ability to handle liquid products and LPG at JNPA while also adding bottling capabilities.
LPG Distribution Ramp-Up
Aegis' LPG distribution business recorded strong volume growth in Q1 FY27. Distribution volumes reached 2.77 lakh MT, registering a 91% YoY increase and a 19% rise over Q4 FY26. Management attributed the increase to robust demand and continued customer additions.
For FY26, LPG distribution volumes stood at 7.54 lakh MT, up 45% YoY. Management has indicated a longer-term target of reaching around 2 million tonnes of distribution volumes, which would represent a substantial increase from the current scale.
Ammonia Terminal at Pipavav
Aegis has commissioned a 36,000 MT specialised ammonia storage terminal at Pipavav. The facility became operational on August 10, 2026, marking the company's expansion into specialised chemical storage and terminaling.
The terminal is backed by a 15-year take-or-pay agreement with Hindustan Zinc for ammonia requirements linked to its upcoming DAP plant. This gives the new facility a contracted volume base rather than relying entirely on spot demand. The move also gives Aegis an opportunity to participate further along the ammonia logistics chain, beyond conventional LPG and liquid storage.
Pipavav Take-or-Pay Contract
At Pipavav, Aegis has secured a 15-year take-or-pay agreement with a leading conglomerate for petroleum-product handling. The customer has committed volumes of more than 0.5 million MT annually, with operations expected to commence by the end of 2026.
A take-or-pay structure means the customer commits to paying for an agreed minimum level of capacity or volume even if the full quantity is not ultimately utilised. For Aegis, this can provide greater revenue visibility and support utilisation of the new infrastructure.
Kandla Capacity Addition
Kandla remains one of Aegis' largest terminal locations, with around 952,000 cubic metres of existing liquid storage and 48,000 MT of static LPG capacity. The company is developing an additional 94,148 cubic metres of liquid storage capacity through the CRL-4 terminal. Commissioning is targeted for next year. The additional capacity is expected to further strengthen Aegis' storage infrastructure at Kandla and support its northern and western India customer base. The company has also said Kandla is now VLGC-compliant, improving its ability to handle larger LPG vessels.
Haldia and Mumbai Terminal Expansion
Aegis Vopak completed the acquisition of a 75% stake in Hindustan Aegis LPG Ltd., adding around 25,000 MT of LPG storage capacity at Haldia. This marked the group's entry into the East Coast LPG terminal market.
The Haldia LPG terminal has an exclusive terminalling agreement with HPCL extending until 2038, providing a long-term contracted relationship. The company also has around 226,890 cubic metres of liquid storage capacity at Haldia and has acquired additional land that could support future expansion.
At Mumbai, Aegis is developing an additional 64,000 KL of liquid storage capacity at an estimated investment of around Rs. 125 crore. The project was targeted for commissioning in H1 FY27.
LPG Pipeline Connectivity
Pipeline connectivity is becoming an important part of Aegis' LPG infrastructure strategy. The Jamnagar-Loni LPG pipeline is now operational, while the Kandla-Gorakhpur LPG pipeline is progressing and was expected to connect during H1 FY27.
These connections can improve evacuation from Aegis' terminals, reduce dependence on road transportation and help improve turnaround times and capacity utilisation. Management has specifically identified these pipeline links as potential drivers of higher volumes at Kandla and Pipavav.
Mangalore LPG and Liquid Infrastructure
Aegis commissioned its 82,000 MT cryogenic LPG terminal at Mangalore in June 2025. The company is also developing an LPG rail-loading gantry and bottling infrastructure with an investment of around Rs. 52.5 crore.
In addition, Aegis added 75,000 cubic metres of liquid storage capacity at Mangalore, which is now operational and fully utilised. This brought the total liquid storage capacity at the location to around 193,000 cubic metres.
The combination of LPG storage, bottling and rail infrastructure can provide multiple evacuation routes and strengthen Mangalore as a larger LPG and liquid-logistics hub.
Itochu Partnership
Itochu Corporation of Japan has acquired an initial 10% stake in Aegis Terminal (Pipavav) Ltd. The transaction was structured through Aegis Vopak Terminals, which held 96% of the Pipavav subsidiary before the proposed transaction and would retain an 86% stake after the sale.
Management has stated that Itochu plans to increase its holding to 25% over the next three years. Itochu's involvement can also complement Aegis' existing LPG sourcing and international trading capabilities, given the broader relationship between Aegis and Itochu.
Overall picture
Taken together, these projects show that Aegis is building capacity across LPG distribution, storage, liquid terminaling, ammonia and multimodal evacuation infrastructure. The JNPA expansion is the largest individual project, while Kandla, Mumbai, Mangalore, Pipavav and Haldia add capacity across different regions.
The key factor to track will be how quickly the newly commissioned and upcoming capacity reaches utilisation, particularly at JNPA, Pipavav, Kandla and Mangalore. The presence of long-term take-or-pay contracts and pipeline/rail connectivity could provide support, while the actual volume ramp-up will determine the pace at which these assets contribute to earnings.
