Petronet LNG Limited (PLL) and Oil and Natural Gas Corporation (ONGC) have executed a 15-year binding term sheet for Ethane Unloading, Storage, and Handling (USH) services. The agreement involves PLL developing ethane handling facilities at Dahej, Gujarat, with ONGC reserving approximately 600 KTPA capacity. PLL anticipates generating about ₹5,000 crore in gross revenue over the contract period. The deal commences between October-December 2028.
Key Agreement Highlights
Petronet LNG Limited (PLL) and Oil and Natural Gas Corporation (ONGC) have formalized a 15-year agreement for Ethane Unloading, Storage, and Handling (USH) services through a binding term sheet. This partnership aims to leverage PLL’s infrastructure development to support ONGC’s ethane requirements.
Project Details and Infrastructure
PLL is currently developing ethane unloading and storage facilities at Dahej, Gujarat, featuring an ethane storage tank capacity of approximately 1,70,000 Cubic Meters. The company is also constructing a unique third jetty at Dahej, designed to handle Ethane and Propane alongside LNG. The services are scheduled to commence between October and December 2028.
Capacity and Revenue Projections
Under the agreement, ONGC will reserve a capacity of about 600 KTPA at PLL’s ethane storage and handling facilities in Dahej. PLL anticipates generating gross revenue of approximately ₹5,000 crore throughout the 15-year contract, with the initial transaction planned for FY 2028-2029. This represents a significant revenue stream for PLL.
Strategic Implications
This agreement marks a milestone in PLL’s strategy to expand its service offerings beyond LNG and strengthen its position in India’s petrochemical and energy value chain. The third jetty at Dahej will facilitate the handling of ethane, propane, and LNG, making it a versatile import facility. This supports the growth of downstream industries, particularly the petrochemical sector.
ONGC’s Perspective
ONGC intends to use this agreement to secure a reliable ethane supply for ONGC Petro Additions Limited (OPaL), which operates one of India’s largest petrochemical complexes in Dahej. The import of ethane will be facilitated via Very Large Ethane Carriers (VLECs) with capacities around 100,000 CBM.
Source: BSE
