Petronet LNG and ONGC Sign 15-Year Ethane Handling Agreement

Petronet LNG Limited and Oil and Natural Gas Corporation (ONGC) Limited have executed a 15-year Ethane Unloading, Storage, and Handling (USH) Services Binding Term Sheet. The agreement is set to commence between October and December 2028 and will conclude on the fifteenth anniversary of the start date. The term sheet outlines the development of ethane unloading, storage, and handling facilities at Dahej, Gujarat, by Petronet LNG.

The agreement specifies that Petronet LNG is expected to earn a gross revenue of approximately ₹5,000 crore over the 15-year duration of the contract. The financial arrangement involves ONGC reserving a capacity of approximately 600 KTPA at Petronet LNG’s ethane storage and handling facilities. The revenue will be generated from the services provided by Petronet LNG, including receiving, storing, and handling ethane sourced and imported by ONGC or its affiliates.

Under the agreement, Petronet LNG will develop ethane storage facilities with a capacity of approximately 1,70,000 cubic meters at Dahej, Gujarat. Additionally, Petronet LNG is constructing a third jetty at Dahej, capable of handling ethane, propane, and LNG. This infrastructure will support the unloading, storage, and handling of ethane and propane, alongside existing LNG operations. The term sheet will serve as the foundation for definitive agreements between the parties involved.

The collaboration between Petronet LNG and ONGC represents a strategic move to expand Petronet LNG’s business portfolio beyond LNG. The development of ethane import infrastructure aims to enhance Petronet LNG’s position in India’s petrochemical and energy value chain. The under-construction jetty at Dahej will be the first of its kind in India, facilitating third-party imports and supporting downstream industries such as the petrochemical sector.

The transaction under the term sheet is scheduled to commence in the fiscal year 2028-2029. The signing of the Ethane Unloading, Storage, and Handling Services Term Sheet took place on December 03, 2025, at ONGC’s corporate office in New Delhi. The event was attended by Shri Arun Kumar Singh, Chairman & Managing Director of ONGC, and Shri Akshay Kumar Singh, Managing Director & CEO of Petronet LNG.

Oil and Natural Gas Corporation (ONGC) Limited is a leading integrated energy company in India, engaged in exploration, production, refining, petrochemicals, and distribution of petroleum products. ONGC is the largest crude oil and natural gas company in India, contributing significantly to domestic production. Its subsidiary, ONGC Petro Additions Limited (OPaL), operates a major petrochemical complex in Dahej, Gujarat.

Petronet LNG Limited is a joint venture promoted by four Oil & Gas Maharatna PSUs: GAIL, ONGC, IOCL, and BPCL. Incorporated in 1998, Petronet LNG manages a significant portion of India’s LNG regasification capacity and imports. The company operates LNG regasification terminals at Dahej, Gujarat, and Kochi, Kerala, with plans to expand its capacity and develop additional infrastructure on India’s East Coast.