Japanese trading company Itochu has invested in an ammonia storage terminal at Port Pipavav, located in the Indian state of Gujarat.

The investment was carried out through the purchase of part of Aegis Terminal's equity from Aegis Vopak Terminals, the company said in a press release.

The terminal became operationally ready on August 10 and is India's first independent ammonia storage terminal. The facility features a 36,000 mt ammonia storage tank, together with cargo handling facilities, pipelines, and truck loading and unloading infrastructure.

India is one of the world's largest consumers of ammonia-based fertilizers, and the country imports a substantial share of the ammonia used in its fertilizer industry. Independent storage infrastructure of this kind can allow importers and distributors to receive larger cargoes and manage supply more flexibly, rather than relying solely on producer-tied facilities. Port Pipavav, on Gujarat's west coast, is one of the ports serving India's western industrial and agricultural hinterland.

"In addition to its traditional fertilizer and industrial applications, ammonia is also expected to see growing demand in clean energy applications, including as a fuel and hydrogen carrier," Itochu said. The investment fits a broader pattern of Japanese trading houses positioning in ammonia supply chains, as Japan explores ammonia co-firing in power generation and ammonia as a shipping fuel under its decarbonization strategy.

Source: Ship & Bunker