Petronet LNG has signed a binding term sheet with Gruner Renewable Energy for the formation of a joint venture (JV) to set up Compressed Bio-Gas (CBG) plants across various states in India. The objective of agreement is to carry on the business of CBG, feedstock procurement, produce, manufacture, process, compress, distribute, store, transport, supply, trade and sell Compressed Bio-Gas and all associated by-products and setting up, developing, establishing, operating, maintaining, and commissioning of CBG plants for above purpose and venturing into any other business opportunity related with bioenergy etc.
A JV company will establish 10 CBG plants each of 18 MT per day capacity across the country with an estimated capital outlay of Rs 1,200 crore. JV would be formed in form of Private Limited company with 50:50 equity participation between Petronet LNG and Gruner Renewable Energy.
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).
