Petronet LNG Joins ONGC for 15-Year Ethane Import Project at Dahej

Petronet LNG gained fresh momentum today after the company confirmed a long-term pact with ONGC to build and run ethane import and handling infrastructure at Dahej.

The two sides have signed a 15-year binding term sheet, setting the stage for ethane unloading, storage, and handling services beginning between October and December 2028.

Under this agreement, ONGC will reserve about 600 KTPA at Petronet’s upcoming ethane facilities. The project includes a 1.7-lakh cubic meter storage tank and a new multi-cargo jetty designed to handle ethane, propane, and LNG.

Over the contract’s duration, Petronet expects to generate nearly Rs 5,000 crore in gross revenue, marking a strong push to widen its footprint beyond LNG and support India’s fast-growing petrochemical space.

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ONGC plans to import ethane using Very Large Ethane Carriers to feed the needs of its subsidiary, ONGC Petro Additions (OPaL), which operates a major ethylene cracker complex at Dahej. The agreement secures long-term capacity for ONGC’s ethane requirements and strengthens integration within India’s petrochemical value chain. The term sheet was signed in New Delhi in the presence of ONGC CMD Arun Kumar Singh and Petronet LNG MD & CEO Akshay Kumar Singh. Both companies noted the deal was finalized on an arm’s-length basis despite ONGC’s promoter role.

Petronet LNG, promoted by GAIL, ONGC, IOCL, and BPCL, manages nearly two-thirds of India’s LNG imports and runs 43% of its regasification capacity. With terminals in Dahej and Kochi totaling 22.5 MMTPA, the firm is expanding Dahej to the same level while developing a new 5 MMTPA terminal at Gopalpur. It is also building a PDH-PP complex and ethane-propane infrastructure, further cementing its position in India’s natural gas and petrochemical industry.