South Asia LPG Company

What South Asia LPG Company does

South Asia LPG Company (SALPG) operates India's first and Asia's first underground LPG storage cavern, located in Visakhapatnam, Andhra Pradesh. The company is an equal 50-50 joint venture between Hindustan Petroleum Corporation Limited (HPCL), a Maharatna Indian public sector oil company, and TotalEnergies Marketing Holdings India, a subsidiary of TotalEnergies France. Incorporated in November 1999, SALPG commissioned its underground rock cavern for commercial operations in December 2007 after a four-year construction period. The cavern sits at depths of 162-181 meters below ground level (with the deepest point at 196 meters below sea level) and provides a single-point propane storage capacity of 60,000MT, making it India's largest such facility. The engineering incorporates water curtain gallery hydrodynamic containment technology, designed by Geostock France and built by Larsen and Toubro as the EPCC contractor.

SALPG's core product is the underground LPG storage cavern, supplemented by terminalling and logistics services. The integrated value chain includes receiving propane and butane through Very Large Gas Carriers (VLGCs) at Visakhapatnam port, blending to LPG specifications, storing in the underground cavern, and evacuating through an 8km cross-country pipeline connected to a 617km pipeline network, plus tank truck and tank wagon distribution. The facility is equipped with industrial automation systems including Distributed Control Systems (DCS), Fire and Gas Detection (F&G), Power Distribution Control System (PDCS), and Emergency Shutdown (ESD) systems. SALPG has achieved 4.5+ million safe man hours without lost-time incidents since 2008 and has earned multiple safety awards including the CII Gold Award for EHS Excellence 2023 and International Safety Award with Distinction from the British Safety Council.

SALPG generates revenue from storage fees and terminalling services for bulk LPG import and storage, serving Oil Marketing Companies (OMCs) including IndianOil, HPCL, and BPCL, as well as private LPG players such as SHV Energy and TotalEnergies. Customer engagement is through direct commercial relationships and tender processes, with the company's storage capacity serving markets across seven Indian states: Andhra Pradesh, Telangana, Odisha, Chhattisgarh, Jharkhand, Maharashtra, and Karnataka. The company employs 11-50 people and is headquartered in Visakhapatnam with its cavern-marine terminal located at the Sunken Ship Jetty Area. The business model is infrastructure-as-a-service, monetizing a single fixed asset with high fixed costs and contracted recurring revenue from anchor customers.

Name

South Asia LPG Company

Legal name

South Asia LPG Company Pvt. Ltd.

Website

https://salpg.com

Company type

Private

Founded year

1999

Operating status

Operating

Headcount range

11–50 employees

Short description

South Asia LPG Company (SALPG) is a 50-50 joint venture between HPCL and TotalEnergies that operates India's first underground LPG storage cavern in Visakhapatnam, providing 60,000MT of bulk storage and terminalling services to Oil Marketing Companies and private LPG importers across Eastern and Central India.

Ownership category

akta.pro rank

Product category

LPG Storage and Terminalling Services

NAICS

Other Warehousing and Storage (49319)

SIC

Wholesale-Petroleum Bulk Stations & Terminals (5171)

akta.pro primary industry

NGL/LPG Pipeline Storage & Terminaling (Caverns, Bullet Tanks, Tank Farms) (TLAGAEAM)

akta.pro secondary industries

Tank Leasing & Third-Party Storage Operators (EUALAEAF), NGL/LPG Storage & Fractionation Terminals (TLAGAKAE), Marine Terminals & Port Storage (Jetties, Docking, Bunkering Interfaces) (EUALAEAG)

Keywords

• LPG storage services
• Underground cavern storage
• LPG terminalling
• Energy logistics services
• Bulk LPG imports

Headquarters

HQ city

Visakhapatnam

HQ country

India

HQ region

Asia

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Operations, Personnel, Technology or R&D, Supply Chain

Revenue model

1. LPG Storage and Terminalling Services: SALPG provides LPG storage solutions to Oil Marketing Companies and private players. Operations include receiving Propane and Butane through VLGCs, blending to LPG specifications, storing in underground cavern, and evacuating via pipeline, tank trucks, or tank wagons. Revenue generated from storage fees and terminalling/handling services for bulk LPG import and storage.

Go-to-market motion1 record

Distribution channels4 records

Marketing channels5 records

Core offering

SALPG operates Asia's first underground LPG storage cavern at Visakhapatnam, providing 60,000MT of propane storage capacity at depths of 162-181M below ground (deepest point 196M below sea level). The company receives propane and butane through Very Large Gas Carriers (VLGCs) at Visakhapatnam port, blends them to LPG specifications, stores them in the underground rock cavern, and evacuates the LPG via an 8km cross-country pipeline, tank trucks, and tank wagons to customers across seven Indian states.

Product overview

South Asia LPG Company (SALPG) operates as a single integrated LPG storage and terminalling business offering underground cavern storage services. The core product is India's first underground LPG cavern facility located in Visakhapatnam with a 60,000MT propane storage capacity at 196 meters below sea level. This is supported by LPG terminalling and logistics services including receipt via VLGC vessels, storage in the underground cavern, and distribution through an 8km cross-country pipeline and tank trucks/wagons. Advanced automation control systems (Fire & Gas Detection, Power Distribution Control, DCS, Emergency Shutdown) complement the physical storage infrastructure to ensure safe operations.

Differentiator

Problem solved

Functional benefit

Products and services

• Underground LPG Cavern Storage Facility India's first and Asia's first underground LPG storage cavern with 60,000MT propane capacity located 162-181M below ground (deepest point 196M below sea level) at Visakhapatnam. Built using water-curtain hydrodynamic containment, the facility safely stores LPG away from external hazards including fire, cyclone, earthquake, and floods. Designed for Oil Marketing Companies and private LPG players importing LPG via VLGC vessels.
• LPG Terminalling and Logistics Services End-to-end LPG terminalling service including receipt of propane and butane through VLGCs and other LPG ships at Visakhapatnam port, blending to LPG specifications, storage in the underground cavern, and evacuation through an 8km cross-country pipeline, connection to a 617km pipeline, tank trucks, and tank wagons. Serves customers in Andhra Pradesh, Telangana, Odisha, Chhattisgarh, Jharkhand, Maharashtra, and Karnataka.

Quantifiable outcome

• 60,000MT single-point LPG storage capacity - India's largest
• +3 more outcomes

Named customers5 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature6 records

Partnerships

Six partnerships are on record, tiered core and minor.

• Hindustan Petroleum Corporation Limited (HPCL)coreStrategic or Co-development PartnerEqual equity joint venture partner (50-50) with SALPG. HPCL is a Maharatna CPSE and Forbes 2000 company, operating two major refineries in Mumbai and Visakhapatnam. HPCL provides downstream infrastructure for LPG evacuation and is the anchor customer for SALPG's storage services. SALPG was incorporated with HPCL's initiative to build India's first underground LPG cavern.
• TotalEnergies Marketing India Private Limited (TMHI)coreStrategic or Co-development PartnerEqual equity joint venture partner (50-50) through TotalEnergies Marketing Holdings India, a fully owned subsidiary of TotalEnergies France which operates in 130+ countries. TMHI represents TotalEnergies' stake in the joint venture, bringing international expertise in energy storage and terminalling operations.
• Larsen and Toubro (L&T), HyderabadcoreStrategic or Co-development PartnerEPCC (Engineering, Procurement, Construction, Commissioning) Contractor for the underground cavern project. L&T designed and built the 60,000MT capacity cavern facility using cutting-edge technology.
• Geostock, FrancecoreTechnology or IntegrationDesign Consultant for the underground LPG cavern project. Provided expertise in cavern design using innovative state-of-the-art technology for India's first underground LPG storage facility.
• SDI (Skills and Development Institute) VisakhapatnamminorStrategic or Co-development PartnerMOU signed on 17th May 2023 with commitment of Rs 50 lakhs for mutual collaboration on skill training initiatives under SALPG CSR program. Project encompasses skill development training programs for unemployed youth in Fire and Safety and Oil & Gas Pipe Fitter categories.
• Visakhapatnam Port Trust (VPT)coreStrategic or Co-development PartnerIn 2003, VPT commissioned an LPG berth at the outer harbour to handle Very Large Gas Carriers (VLGC) with capacity over 45,000MT. This existing infrastructure made Visakhapatnam a viable location for SALPG's cavern operations.

Scale indicators5 records

Recent moves8 records

Expansion highlights4 records

Direct peers

• Gulf Petrochem: India- and UAE-based petroleum products trading, terminalling, and storage company with LPG and downstream operations. Comparable as a regional LPG/fuel storage and trading peer serving South Asian markets.
• Aegis Logistics: Indian liquid bulk storage and LPG terminaling company operating terminals at multiple Indian ports. Directly comparable as an India-focused LPG/chemical terminalling and storage operator serving OMCs and industrial customers.
• Royal Vopak India (Vopak India): Indian arm of global Vopak, operating bulk liquid storage terminals in India. Directly comparable as a third-party bulk storage terminal operator serving industrial and energy customers in India.
• IMC Group (Indo Maroc Phosphore): Indian LPG bottling, storage, and distribution company. Comparable as a domestic LPG infrastructure operator focused on storage and distribution to industrial and domestic customers.

Broad incumbents

• Vopak: Global independent tank storage operator with terminals worldwide storing chemicals, gases, and oil products. Comparable as a large-scale third-party bulk liquid/gas storage operator with similar business model of fee-based terminalling services.
• Oiltanking (Mabanaft): Global independent tank storage provider for petroleum, chemicals, and gases with global terminal network. Comparable as a large-scale third-party terminalling operator with similar fee-based infrastructure model.
• Indian Oil Corporation: India's largest state-owned oil marketing company, SALPG's customer, with own LPG import terminals and bottling plants. Comparable as an integrated LPG value chain participant overlapping on storage and import infrastructure.
• Stolthaven Terminals (Stolt-Nielsen): Global provider of bulk liquid storage terminals for chemicals, clean petroleum products, and gases. Comparable as an international independent storage operator with similar third-party service model.
• Reliance Industries (Oil-to-Chemicals division): India's largest private sector integrated energy company producing LPG as a refining by-product with own storage and export infrastructure. Comparable as a large-scale LPG producer with downstream storage and export capabilities.

Regional players

• ENOC (Emirates National Oil Company): UAE-based integrated energy company with LPG storage, processing, and export terminaling. Comparable as a Middle East LPG storage and terminalling operator with similar midstream infrastructure focus.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/south-asia-lpg-company-private-limited

Compliance15 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about South Asia LPG Company