New Delhi: Petronet LNG Limited (PLL) has signed a binding term sheet with Gruner Renewable Energy Private Limited to establish a joint venture for setting up 10 Compressed Bio-Gas (CBG) plants across India, with an estimated capital investment of ₹1,200 crore.
The agreement was signed on October 22, 2026, and provides for a private limited joint venture company with equal 50:50 equity participation between Petronet LNG and Gruner Renewable Energy.
Each proposed CBG plant will have a production capacity of 18 metric tonnes per day (MTPD). The initiative marks a strategic expansion of Petronet LNG’s business into the bioenergy sector and supports the development of India’s compressed biogas infrastructure.
Petronet LNG Plans 10 CBG Plants Across India
Under the proposed joint venture, Petronet LNG and Gruner Renewable Energy will work towards establishing 10 compressed biogas plants, each with a capacity of 18 MTPD.
The total estimated capital outlay for the projects is ₹1,200 crore. The plants are planned across India, although specific locations have not been announced in the provided details.
The proposed investment aims to expand CBG production capacity and develop opportunities across the bioenergy value chain.
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Joint Venture to Cover the Entire CBG Value Chain
The proposed joint venture will undertake activities related to the compressed biogas business, including:
- Procurement of feedstock required for CBG production.
- Production, manufacturing, processing and compression of compressed biogas.
- Distribution, storage and transportation of CBG.
- Supply, trading and sale of compressed biogas and associated by-products.
- Establishment, development, operation and maintenance of CBG plants.
- Exploration of related bioenergy opportunities.
The broad scope of operations is intended to cover the major stages of the CBG value chain, from feedstock procurement to production and commercial distribution.
Petronet LNG and Gruner Renewable Energy to Hold Equal Stakes
The binding term sheet provides for a 50:50 equity partnership between Petronet LNG and Gruner Renewable Energy in the proposed private limited joint venture company. The board of directors of the joint venture will have representation from both companies in proportion to their respective shareholdings.
Petronet LNG has also disclosed that it does not hold any shareholding in Gruner Renewable Energy Private Limited. The company stated that the transaction does not qualify as a related-party transaction, as the two parties are not related to the promoter or promoter group in any manner.
Petronet LNG Expands into the Bioenergy Sector
The proposed partnership will help Petronet LNG diversify beyond its traditional liquefied natural gas (LNG) business and explore opportunities in compressed bio-gas and related bio-energy sectors.
The joint venture plans to establish 10 CBG plants with a combined capacity of 180 metric tonnes per day.
The proposed venture will cover activities across the CBG value chain, including feedstock procurement, production, processing, storage, transportation and marketing.
The project involves an estimated capital outlay of ₹1,200 crore.
The initiative could support the expansion of India’s alternative fuel infrastructure and domestic bioenergy production, subject to project development and implementation.
About Petronet LNG Limited
Petronet LNG Limited (PLL) is one of India’s leading companies in the LNG sector. The company is engaged in the import, storage and regasification of liquefied natural gas (LNG) and operates LNG infrastructure including its terminals at Dahej in Gujarat and Kochi in Kerala. PLL plays a role in supporting the supply of natural gas to various sectors of the Indian economy.
