Petronet LNG climbs after sealing 15-year pact with ONGC

Petronet LNG climbed 3.46% to Rs 278.25 after the company announced a long-term agreement with ONGC for developing and operating ethane import and handling infrastructure at Dahej.

Both companies have signed a 15-year binding term sheet for ethane unloading, storage and handling services, with operations scheduled to begin between October and December 2028. Under the arrangement, ONGC will reserve about 600 KTPA capacity at Petronet's upcoming ethane facilities in Dahej, where the firm is building a 1.7-lakh cubic metre storage tank and a new multi-cargo jetty capable of handling ethane, propane and LNG.

Petronet expects to generate roughly Rs 5,000 crore in gross revenue over the contract period. The company described the deal as a major step toward expanding its portfolio beyond LNG by offering ethane import infrastructure to third parties and supporting Indias petrochemical ecosystem.

ONGC, meanwhile, plans to import ethane through Very Large Ethane Carriers to meet the feedstock requirements of its subsidiary ONGC Petro Additions (OPaL), which runs a large ethylene cracker complex at Dahej. The agreement ensures secured capacity for ONGCs long-term ethane needs.

The term sheet was signed in New Delhi in the presence of ONGC CMD Arun Kumar Singh and Petronet LNG MD & CEO Akshay Kumar Singh. The companies noted that although ONGC is a promoter of Petronet, the transaction has been executed on an arms-length basis.

Petronet LNG is a joint venture promoted by four Oil & Gas Maharatna PSUsGAIL, ONGC, IOCL, and BPCLeach holding a 12.5% equity stake. It handles nearly two-thirds of Indias LNG imports and operates 43% of the countrys regasification capacity, generating about Rs 51,000 crore in FY 202425. With terminals at Dahej and Kochi offering a combined 22.5 MMTPA capacity, the company is expanding Dahej to the same level and developing a new 5 MMTPA terminal at Gopalpur. It is also building a PDH-PP complex and ethane-propane handling facilities at Dahej, strengthening its role in Indias natural gas and petrochemical ecosystem.

On a consolidated basis, net profit of Petronet LNG declined 4.63% to Rs 830.30 crore while net sales declined 15.47% to Rs 11009.13 crore in Q2 September 2025 over Q2 September 2024.

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