Petronet LNG secures INR 5,000 crore ethane handling deal with ONGC

Petronet LNG Limited (PLL) signed a 15-year ethane unloading, storage and handling (USH) services binding term sheet with Oil and Natural Gas Corporation (ONGC) Limited. This agreement, set to commence between October – December 2028, is projected to generate a gross revenue of approximately INR 5,000 crore for PLL over its 15-year duration. The transaction will support ONGC's subsidiary, ONGC Petro Additions Limited (OPaL), in meeting feedstock requirements for its Dahej petrochemical complex.

Under the terms, PLL will provide ONGC with approximately 600 KTPA of capacity at its Dahej facilities for storing and handling imported ethane. PLL is developing dedicated ethane unloading, storage, and handling infrastructure, including a 1,70,000 cubic meters ethane storage tank and a new third jetty at Dahej capable of handling ethane, propane, and LNG. This infrastructure aims to enhance India's petrochemical and energy value chain by offering third-party import services.

This strategic move expands PLL's business portfolio beyond LNG, solidifying its position in the Indian energy sector. The company already commands 43% of India's LNG regasification capacity and contributes approximately 33% of the nation's total natural gas supply.