New Delhi: Petronet LNG Ltd (PLL) is set to expand beyond its core liquefied natural gas (LNG) business by entering the Compressed Bio-Gas (CBG) segment. The company plans to invest around ₹1,200 crore to establish 10 CBG plants through a 50:50 joint venture with Gruner Renewable Energy.
The proposed investment marks a strategic move by Petronet LNG into the renewable and alternative-energy space as companies increasingly explore cleaner fuel opportunities.
Petronet LNG Plans 10 CBG Plants
Under the proposed joint venture, Petronet LNG and Gruner Renewable Energy will have equal ownership in the venture.
The project will involve the establishment of 10 CBG plants, with each facility expected to have a production capacity of 18 metric tonnes per day (MT/day).
- Number of proposed plants: 10
- Capacity of each plant: 18 MT/day
- Total planned capacity: 180 MT/day
- Estimated investment: ₹1,200 crore
- Joint venture structure: 50:50
- JV partner: Gruner Renewable Energy
The planned facilities will give the joint venture an aggregate CBG production capacity of 180 MT per day.
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Expansion Beyond Core LNG Business
The proposed CBG venture represents a significant expansion of Petronet LNG’s business interests beyond its traditional LNG operations.
Petronet LNG has been primarily associated with the import, storage and regasification of LNG. Its proposed entry into CBG will allow the company to establish a presence in another segment of India’s evolving clean-energy ecosystem.
The move also reflects the growing interest among energy companies in diversifying their portfolios across renewable and alternative fuels.
₹1,200 Crore Investment Planned
The estimated capital outlay for setting up the 10 CBG plants is ₹1,200 crore. Petronet LNG and Gruner Renewable Energy are expected to contribute to the venture based on their equal 50:50 ownership structure.
The investment will support the development of the proposed CBG facilities, although detailed information on the financing arrangement has not yet been disclosed.
Further details are expected through subsequent stock exchange filings.
Project Details Yet to Be Announced
While the overall investment and capacity plans have been outlined, several project-related details are yet to emerge.
These include:
- Incorporation timeline of the joint venture
- Locations of the proposed CBG plants
- Financing structure
- Project execution schedule
- Detailed implementation roadmap
The company is expected to provide further updates as the project progresses.
CBG Gains Importance in India’s Clean Energy Transition
Compressed Bio-Gas is emerging as an important part of India’s alternative-energy ecosystem. It is produced from organic and renewable feedstocks and can be used as a cleaner gaseous fuel.
The proposed investment comes at a time when energy companies are exploring opportunities in cleaner fuels and expanding beyond conventional energy sources.
For Petronet LNG, the proposed joint venture provides an opportunity to enter the growing CBG market while continuing to leverage its experience in the broader energy sector.
About Petronet LNG
Petronet LNG Ltd is one of India’s leading companies in the LNG sector. It is involved in the import, storage and regasification of liquefied natural gas and operates LNG receiving and regasification infrastructure in India. The company is now looking to diversify its energy portfolio with its proposed entry into the CBG segment.
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