New Delhi: Oil and Natural Gas Corporation (ONGC) and Petronet LNG Ltd (PLL) have inked a 15-year binding term sheet for ethane unloading, storage, and handling services at PLL’s upcoming terminal in Dahej, Gujarat. The agreement allows ONGC to secure approximately 600 KTPA of capacity at the new facility, marking a first-of-its-kind long-term arrangement for an Indian Central Public Sector Enterprise (CPSE).
Significant Revenue Prospects for Petronet LNG
Under the pact, Petronet LNG anticipates generating around Rs 5,000 crore in gross revenue over the 15-year contract period. PLL emphasized that its under-construction third jetty will be equipped to handle ethane, propane, and LNG, and will serve as India’s first terminal of its kind open for third-party imports.
High-Level Signing Ceremony
The term sheet was signed on December 3 in New Delhi, in the presence of Mr Arun Kumar Singh, Chairman & Managing Director of ONGC, and Mr Akshay Kumar Singh, Managing Director & CEO of PLL. Both leaders highlighted the strategic importance of the agreement for India’s energy and petrochemical sectors.
Strategic Boost for Dahej Petrochemical Hub
ONGC stated that the collaboration enhances India’s ethane import capabilities, secures a reliable long-term feedstock supply for OPaL India’s petrochemical complex at Dahej, and supports the broader availability of cost-effective petrochemical products. The company also underlined that the partnership reinforces its vision of evolving into an integrated energy major across the global value chain.
About ONGC
Established in 1956, ONGC is India’s largest public sector oil and gas company, engaged in exploration, production, and development of hydrocarbons across the country. The company plays a vital role in meeting India’s energy needs, contributing to national energy security, and supporting the country’s transition toward renewable energy and sustainable development. As a Maharatna PSU, ONGC continues to pursue strategic initiatives aimed at increasing domestic hydrocarbon production, expanding technological capabilities, and fostering innovation in the energy sector.
About Petronet LNG
Petronet LNG Limited is an Indian oil and gas company formed by the Government of India to import liquefied natural gas (LNG) and set up LNG terminals in the country. It is a joint venture company promoted by the Gas Authority of India Limited (GAIL), Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOC) and Bharat Petroleum Corporation Limited (BPCL).
