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Petronet LNG, ONGC execute 15-years ethane USH services binding term sheet

04 Dec 2025 Evaluate

Petronet LNG (PLL) and Oil and Natural Gas Corporation (ONGC) 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 anniversary of the commencement date).

PLL is developing ethane unloading, storage and handling 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 affiliates at Dahej, Gujarat and redeliver 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. PLL’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.

Petronet LNG is one of the leading players in oil and natural gas industry space. The company's promoters are GAIL (India), Oil & Natural Gas Corporation (ONGC), Indian Oil Corporation (IOCL) and Bharat Petroleum Corporation (BPCL).

Petronet LNG Share Price

270.75 -0.45 (-0.17%)
10-Apr-2026 16:59 View Price Chart
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Company Name CMP
Petronet LNG 270.75
Bharat Coking Coal 32.75
Linde India 7190.85
Refex Industries 226.25
IRM Energy 202.85
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