Petronet LNG shares rise 4% on 15-year contract with ONGC; check details

Petronet LNG shares have gained 4 per cent on the BSE, logging an intra-day high at ₹279.95 per share. The buying interest came after the company entered into a 15-years ethane unloading, storage and handling (USH) services binding term sheet with Oil and Natural Gas Corporation (ONGC).

 

At 10:37 AM, Petronet LNG share price was trading 3.57 per cent higher at ₹278.55 per share on BSE. Meanwhile, ONGC shares were trading 0.62 per cent higher at ₹241.55 per share. In comparison, the BSE Sensex was up 0.38 per cent at 85,426.01.

 

The company has a total market capitalisation of ₹41,782.5 crore. Its 52-week high was at ₹349.2, and its 52-week low was at ₹266.45.  

 

 

According to the filing, Petronet LNG is developing ethane unloading, storage and handling (USH) facilities with ethane storage tank capacity of 1,70,000 cubic meters at Dahej, Gujarat. The company 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 terms in the binding term sheet, Petronet LNG is expected to earn a gross revenue of about ₹5,000 crore over the total contract duration of 15 years. The transaction shall commence from FY 2028-2029. 

 

Petronet LNG's under-construction unique third jetty will facilitate unloading, storage and handling of ethane, propane and LNG at Dahej and will be the first-of-its-kind in India, which shall be made available for third-party imports. This step of the company underscores its commitment to enabling the growth of downstream industries such as the 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, according to the filing.