Gas Gateway Expands: Petronet LNG Signs Rs 1,200 Crore Regasification Deal With Performance Chemise-RVE

Image Source : Business Standard

Petronet LNG Ltd has entered into a regasification agreement with Performance Chemise-RVE, expected to generate Rs 1,200 crore in revenue over the contract period. The deal reinforces Petronet’s leadership in India’s LNG infrastructure and highlights growing demand for clean energy solutions across industrial sectors.

Key Highlights From the Agreement

- The contract involves long-term regasification services at Petronet’s Dahej terminal, which has a capacity of 17.5 MMTPA
- Performance Chemise-RVE will utilize Petronet’s infrastructure to convert imported LNG into usable natural gas for downstream applications
- The agreement includes upside potential linked to volume escalation and ancillary services such as bunkering and storage
- Petronet’s regasification tariff at Dahej is currently Rs 62.91 per MMBtu, with a 5 percent annual escalation clause
- The deal aligns with Petronet’s strategy to maximize terminal utilization and diversify its customer base beyond PSU offtakers

Strategic Context and Market Impact

- Petronet is expanding Dahej’s capacity to 22.5 MMTPA by FY2026 and constructing a multi-use jetty for Q-Max tankers and propane imports
- The company is also developing a new 5 MMTPA LNG terminal at Gopalpur on India’s east coast, expected to be operational by 2027
- With LNG demand rising in power, fertilizer, and industrial sectors, Petronet’s regasification services are becoming increasingly critical to India’s energy transition

Outlook

This agreement marks a significant step in Petronet’s commercial strategy, unlocking new revenue streams while supporting India’s push for cleaner fuel adoption.

Sources: Petronet LNG Ltd regulatory filings, Business Standard, Moneycontrol, Economic Times Markets, Argus Media, RupeeWise, Trendlyne, ICRA Ratings