Ports are no longer functioning merely as transit and logistics hubs; in fact, they are increasingly evolving into strategic infrastructure assets that support the movement of crude oil, liquefied natural gas (LNG), liquefied petroleum gas (LPG), petroleum products and emerging green fuels. Rising energy demand, growing import dependence and the transition towards cleaner fuels are collectively driving the expansion of liquid cargo infrastructure across Indian ports.
At the same time, geopolitical instability in West Asia has exposed the vulnerability of global energy supply chains and underscored the strategic importance of resilient port infrastructure. These developments are fundamentally reshaping the future of liquid cargo handling terminals in India, prompting public and private players to strengthen operational preparedness, improve cargo evacuation systems and enhance maritime coordination.
Liquid cargo handling at Indian ports
India’s port sector witnessed strong growth in liquid cargo handling during 2025-26, driven by rising crude oil imports, increasing petroleum product movement and expanding energy demand. Both major and non-major ports recorded double-digit growth in liquid cargo traffic, as it remains a dominant cargo segment.
Petroleum oil and lubricants (POL) (including crude oil) traffic at major ports reached 272.27 million tonnes (mt) in 2025-26, accounting for 29.77 per cent of the total cargo handled. The volume recorded a year-on-year growth of 16.18 per cent. Among major ports, Deendayal port handled the highest volume of liquid cargo, including crude oil, petroleum products, LPG, LNG and other liquids, at 75.84 mt in 2025-26. It was followed by Paradip port with 48.09 mt and Mumbai port with 46.83 mt. At non-major ports, POL traffic stood at 196.76 mt during 2025-26, marking a 13.47 per cent increase over 2024-25. The commodity accounted for 26.13 per cent of the total cargo mix at non-major ports.
Geopolitical risks reshaping India’s liquid cargo supply chain
The geopolitical instability in West Asia and recurring disruptions around the Strait of Hormuz are fundamentally reshaping the future of liquid cargo handling terminals at Indian ports. Nearly 1.7 mt of Indian crude oil, LNG and LPG cargo were stranded in the Gulf earlier this year, exposing the vulnerability of India’s energy supply chain to disruptions in the strategic chokepoint.
In response, Indian ports expanded storage support and prioritised faster discharge operations for LPG and crude cargoes arriving through alternative routes. Port authorities also increased focus on strategic reserves, LNG regasification capacity, and pipeline connectivity to reduce dependence on single shipping corridors. They have intensified coordination with shipping lines and terminal operators to minimise congestion and maintain uninterrupted handling of cargo. In addition, port authorities have announced concessions, including waivers on certain storage and cargo-related charges, to support exporters and importers affected by delays in vessel movement and cargo evacuation. India has also stepped up contingency planning through naval escorts, emergency routing strategies and diversification of energy supplies. In parallel, the government is evaluating a proposed Rs 400 billion subsea gas pipeline from Oman to enhance long-term energy security.
The situation has now eased slightly compared to the past two months, with multiple India-bound tankers having successfully crossed the Strait under enhanced monitoring and naval coordination. Recent developments indicate that about 12 India-bound LPG carriers have crossed the strait safely, while additional vessels continue to transit the route. Among the recent transits, the LPG carrier Symi, carrying about 20,000 tonnes of propane and butane, reached Deendayal port after crossing the strait. In another notable movement, LPG carrier MT Sarv Shakti recently crossed the strait carrying about 46,313 tonnes of LPG. Similarly, a vessel carrying around 16,000 tonnes of LPG recently reached Devgad port in Maharashtra amid heightened regional security concerns. These shipments have played an important role in maintaining continuity across both private sector distribution networks and public sector energy supply chains.
However, the situation going forward will depend on several key factors, including the evolving geopolitical situation, the security environment, the continuity of naval protection and maritime coordination measures, global energy market dynamics, freight cost volatility, and the ability of Indian ports and logistics networks to efficiently manage rising LPG import volumes.
Measures taken to accelerate liquid cargo infrastructure expansion
Indian port authorities are undertaking a broad range of initiatives to strengthen liquid cargo handling infrastructure in response to rising demand for crude oil, LNG, LPG, petroleum products, and emerging green fuels. Ports are accelerating investments in infrastructure modernisation, mechanisation and capacity expansion to improve operational efficiency and support higher cargo throughput. Key measures include the development of dedicated liquid bulk terminals, expansion of storage and pipeline infrastructure, and creation of deeper draughts to accommodate larger vessel carriers. In parallel, ports are focusing on improving marine infrastructure and navigational efficiency to ensure safer and faster vessel movement. Port authorities have introduced advanced navigational safety systems, vessel traffic management upgrades and green tug deployment programmes as part of broader sustainability and operational modernisation efforts. Ports are also enhancing digital monitoring systems, cargo evacuation networks, and berth productivity to minimise turnaround time and reduce logistical bottlenecks.
Deendayal port is rapidly positioning itself as a key hub for green maritime fuels and low-carbon trade, supported by a series of clean energy initiatives and infrastructure upgrades. The port recently conducted India’s first shore-to-ship green methanol bunkering trial, demonstrating its readiness to support alternative marine fuels and global green shipping corridors. The exercise validated the port’s infrastructure, safety systems and operational protocols for methanol handling. The port is also advancing plans for green hydrogen and e-methanol production. It has signed an MoU with GH2 Solar Limited to undertake a joint feasibility study and develop a strategic road map for exporting liquid green hydrogen from the port. The initiative aims to establish green energy logistics infrastructure and position Kandla as a major green hydrogen export hub under India’s National Green Hydrogen Mission. The study will evaluate the technical, commercial, environmental and regulatory requirements for hydrogen liquefaction, storage and export infrastructure at the port. The collaboration will also focus on cleaner fuels, low-carbon port logistics and sustainable maritime operations. In April 2026, the port facilitated the export of cryogenic LNG storage tanks manufactured by INOX India Limited for a mini-LNG terminal project in the Bahamas. The shipment highlights Deendayal port’s capability to manage complex project cargo and underscores India’s growing role in global energy infrastructure and engineering exports.
Paradip port is set to emerge as a major green energy cargo hub following the centre’s approval of a Rs 79.72 billion project for developing a dedicated jetty and allied infrastructure to handle green hydrogen, ammonia and other liquid cargo. The project, to be executed by the Paradip Port Authority on a build-operate-transfer basis, will have a cargo handling capacity of 4 million tonnes per annum (mtpa). The proposed infrastructure includes storage facilities, pipelines and specialised cargo handling systems aimed at supporting India’s clean energy transition and export ambitions. The initiative is expected to strengthen Paradip’s role in green fuel logistics and low-carbon maritime trade. The port has also been recognised as a green hydrogen hub and is pursuing multiple expansion projects, including green hydrogen and ammonia export terminals, as part of its long-term plan to scale cargo handling capacity and become a future-ready energy and logistics hub.
In parallel, the government has approved the redevelopment of Berth No. 9 at New Mangalore port to strengthen liquid bulk cargo handling capacity and improve maritime logistics efficiency. The Rs 4.38 billion project will be implemented on a public-private partnership basis under the design-build-finance-operate-transfer model. The upgraded berth will handle crude oil, petroleum products and LPG, with the draught depth being increased from 10.5 metres to 14 metres, and designed for future expansion up to 19.8 metres. This will enable the port to accommodate larger vessels, including very large gas carriers (VLGCs), and raise cargo handling capacity to 10.9 mtpa. The construction period is two years, with a concession period of 30 years, inclusive of construction. The redevelopment will replace ageing infrastructure with modern facilities featuring mechanised systems, advanced safety infrastructure, and automated operations. The project is expected to improve operational efficiency, reduce logistics costs, and strengthen the port’s role as a key energy and trade gateway for Karnataka and Kerala.
Areas of concern
In addition to geopolitical risks, liquid cargo handling at Indian ports is facing a growing set of operational, environmental and regulatory challenges. With the rising import volume of liquid cargo, ports are under pressure to upgrade infrastructure, improve turnaround efficiency, and strengthen safety management systems. Besides, capacity constraints at storage terminals, limited pipeline evacuation infrastructure, congestion at berths and dependence on weather-sensitive operations continue to impact operational efficiency at several ports.
In particular, regulatory authorities, investors and shipping companies are placing greater emphasis on environmental safety compliance, spill prevention mechanisms, emissions management and hazardous cargo handling standards. Any disruption in the shipping corridors can lead to delays, higher freight rates, increased premiums and supply chain uncertainty.
The way forward
The future of liquid cargo handling terminals in India will increasingly depend on geopolitical adaptability, technological modernisation and supply chain resilience as global energy trade patterns become more volatile and complex. In addition, advanced safety systems for handling LNG, LPG, ammonia, methanol and hydrogen cargo will become essential as India expands into cleaner fuels and green shipping. Greater emphasis is also being placed on all-weather terminals, strategic reserves, cybersecurity and climate-resilient infrastructure. As India seeks to become a global manufacturing and energy hub, liquid cargo terminals will play a central role in supporting industrial growth, energy transition and long-term trade security.
Sidra Siddiquie
