Petronet LNG to provide ONGC ethane facilities, inks INR 50-billion, 15-year deal
This story was originally published at 18:27 IST on 3 December 2025
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AHMEDABAD – Petronet LNG Ltd. has signed a 15-year binding term sheet with Oil and Natural Gas Corp. Ltd. for ethane unloading, storage, and handling services, the company said in a filing with the stock exchanges Wednesday. The agreement will begin sometime in Oct-Dec 2028 and end on the 15th anniversary of the commencement date. The deal could earn Petronet LNG revenue of up to INR 50 billion over the 15-year period.
Petronet LNG is developing ethane unloading, storage, and handling facilities with an ethane storage capacity of nearly 170,000 cubic metres at Dahej in Gujarat. The company is also building a third jetty at Dahej which will be capable of handling ethane and propane, in addition to liquefied natural gas.
As per the term sheet, ONGC will reserve capacity of nearly 600,000 tonnes per annum at Petronet LNG's ethane storage and handling facilities at Dahej. Petronet LNG, on its part, will receive, store, and handle ethane sourced by ONGC and its subsidiaries or affiliates at Dahej and redeliver it to ONGC at the delivery point.
ONGC seeks to import ethane as part of its long-term strategy to ensure a reliable and consistent supply of the gas as feedstock for the ONGC Petro additions Ltd. facility at Dahej. ONGC also plans to procure and import ethane through very large ethane carriers on long-term, short-term, and spot basis. ONGC Petro additions operates one of the country's largest petrochemical complexes at Dahej, including an ethylene cracker unit that uses ethane as the primary feedstock.
Wednesday, shares of Petronet LNG closed 0.9% lower at INR 268.75 on the National Stock Exchange. Shares of ONGC closed 1.5% lower at INR 240.02. End
Reported by Sunil Raghu
Edited by Rajeev Pai
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