Aegis is a key Supplier for total supply chain management services to major customers including Oil PSUs. Aegis has presently three operating port terminals, two in Mumbai and one in Kochi, as well as two state of the art gas terminals at Mumbai & Pipavav through which it handles  annually over 20,00,000 MT of Oil, Gas and Petroleum products as well as around 400,000 MT of LPG and Propane gas. With the announcement of this project, Aegis' liquids capacity will rise from 3 lakh KL to over 10 lakh KL

The facilities at Port Pipavav will service oil companies who wish to use the port for import and export of oil and petrochemical products," said Anish Chandaria, MD & CEO of AEGIS. "For the first time, India is becoming part of the Asian supply network for oil and this port will be a strategic infrastructure for contango and arbitrage trading strategies. With our existing locations in Mumbai and Kochi, we are one step closer to achieving our stated aim of creating a ‘necklace' of similar port terminals around the coastline of India. We will also be expanding our capacity in Kochi by 50% and building an additional 80,000 KL in Haldia Port", he added.

"We are very pleased to tie up with AEGIS to provide this infrastructure support at Port Pipavav," said Prakash Tulsiani, MD, APM Terminals Pipavav. "A new berth for liquid cargo has already been built at Port Pipavav. With liquid cargo storage facilities being developed by AEGIS, we will be able to offer our customers a comprehensive portfolio of facilities for a large variety of cargo."

The project will be completed in three phases with the first phase commencing in January 2011. Means of finance will be 40% debt and 60% equity. Revenues of Rs 150 crore are expected each year after setup. The expected IRR of the project is 30% after tax and NPV of approximately Rs 750 - 1000 crore. Expected year three forward EBITA of Rs 80 – 100 crore. Aegis will undertake 2 – 3 similar projects to complete a necklace around the Indian coastline with a total investment of up to Rs 2000 crore including the present investment.

The Indian oil and gas logistics sector has remained relatively small by global standards until now, but with continued deregulation and liberalization of the Oil Sector by the Government the scope and the scale of the business is likely to undergo a huge expansion. Aegis's mission is to build an unrivalled national port infrastructure and distribution network in the oil & gas sector in India.