ONGC, Petronet ink 15-year Ethane handling pact

New Delhi: Oil and Natural Gas Corporation (ONGC) Limited and Petronet LNG Limited (PLL) have entered into a 15-Years Ethane Unloading, Storage and Handling (USH) Services Binding Term Sheet (commencing between October – December 2028 and ending on the fifteenth (15th) anniversary of the commencement date).

PLL is developing ethane unloading, storage and handling (USH) facilities with ethane storage tank capacity of approx. 1,70,000 Cubic Meters at Dahej, Gujarat.

PLL is also constructing a unique third jetty at Dahej which will be capable of handling Ethane and Propane in addition to LNG.

As per the term sheet, ONGC shall reserve capacity of approximately 600 KTPA at PLL’s Ethane storage and handling facilities at Dahej, Gujarat.

PLL shall receive, store and handle Ethane sourced and imported by ONGC/its subsidiary or affiliate(s) at Dahej, Gujarat and re-deliver Ethane to ONGC at the Delivery Point.

The term sheet shall form basis for definitive agreements between the parties.

As per the commitments under the binding term sheet, PLL is expected to earn a gross revenue of about Rs 5,000 crore over the total contract duration of 15 years.

The transaction under the said term sheet shall commence from FY 2028-2029. It represents a significant milestone in PLL’s strategic vision to develop and offer ethane import infrastructure to third parties, thereby expanding its business portfolio beyond LNG and strengthening its position in India’s petrochemical and energy value chain.

Petronet LNG Limited’s under-construction unique third jetty will facilitate unloading, storage and handling ethane, propane and LNG at Dahej and will be first-of-its-kind in India which shall be made available for third-party imports.

This step of PLL underscores its commitment for enabling growth of downstream industries such as Petrochemical sector through world-class import infrastructure for ethane and propane in addition to its existing LNG regasification

infrastructure.