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Corporate News - Detailed News Back
Oil & Natural Gas Corpn signs 15-year deal with Petronet LNG
03-Dec-25   17:38 Hrs IST

Oil & Natural Gas Corporation (ONGC) and Petronet LNG (PLL) have entered into a 15-Years Ethane Unloading, Storage and Handling (USH) Services Binding Term Sheet (commencing between October ' December 2028 and ending on the fifteenth (15th) anniversary of the commencement date).

PLL is developing ethane unloading, storage and handling (USH) facilities with ethane storage tank capacity of approx. 1,70,000 Cubic Meters at Dahej, Gujarat. PLL is also constructing a unique third jetty at Dahej which will be capable of handling Ethane and Propane in addition to LNG.

As per the term sheet, ONGC shall reserve capacity of approximately 600 KTPA at PLL's Ethane storage and handling facilities at Dahej, Gujarat. PLL shall receive, store and handle Ethane sourced and imported by ONGC/its subsidiary or affiliate(s) at Dahej, Gujarat and re deliver Ethane to ONGC at the Delivery Point. The term sheet shall form basis for definitive agreements between the parties.

As per the commitments under the binding term sheet, PLL is expected to earn a gross revenue of about Rs 5,000 crore over the total contract duration of 15 years. The transaction under the said term sheet shall commence from FY 2028-2029. It represents a significant milestone in PLL's strategic vision to develop and offer ethane import infrastructure to third parties, thereby expanding its business portfolio beyond LNG and strengthening its position in India's petrochemical and energy value chain. PLL's under-construction unique third jetty will facilitate unloading, storage and handling ethane, propane and LNG at Dahej and will be f irst-of-its-kind in India which shall be made available for third-party imports. This step of PLL underscores its commitment for enabling growth of downstream industries such as Petrochemical sector through world-class import infrastructure for ethane and propane in addition to its existing LNG regasification infrastructure.

As part of its long-term strategy to ensure a reliable and consistent supply of ethane to ONGC Petro Additions Limited (OPaL), ONGC plans to procure and import ethane'via Very Large Ethane Carriers (VLECs) of approximately 100,000 CBM capacity'on long-term, short-term and spot basis. This agreement provides ONGC with assured capacity booking for the import of ethane to meet the feedstock requirements of OPaL. ONGC's subsidiary, ONGC Petro Additions Limited (OPaL), operates one of India's largest petrochemical complexes located at Dahej, Gujarat, which includes a world-scale ethylene cracker unit using ethane as the primary feedstock.

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