Petronet–ONGC Seal 15-Year Ethane Deal, Unlocking ₹5,000-Crore Revenue Pipeline

Long-Term Ethane Infrastructure Play

Petronet LNG (PLL) will develop dedicated ethane USH facilities at Dahej with a storage tank of about 1,70,000 cubic metres and a new “third jetty” capable of handling ethane, propane and LNG—billed as a first-of-its-kind multi-product jetty in India. Under the binding term sheet, ONGC will book roughly 600 KTPA capacity, importing ethane via large VLECs and receiving it back at Dahej for use in its subsidiary ONGC Petro Additions Ltd (OPaL), which runs one of India’s largest ethylene crackers.​

Strategic and Financial Upside

The 15-year arrangement, commencing between October–December 2028, is projected to generate about ₹5,000 crore in gross revenue for Petronet over the contract life, materially diversifying its portfolio beyond LNG regasification. The move strengthens India’s petrochem value chain by ensuring reliable ethane logistics for OPaL, while Petronet positions Dahej as a hub import terminal for third-party ethane and propane, in addition to LNG.​

Key Highlights

Contract Type: 15-year Ethane Unloading, Storage & Handling (USH) Services Binding Term Sheet between ONGC and PLL.​

Start & Tenure: Commences in FY 2028–29; runs for 15 years from start date.​

Capacity Booking: ONGC reserves ~600 KTPA at PLL’s Dahej ethane facilities.​

Revenue Visibility: PLL expects ~₹5,000 crore gross revenue over contract duration.​

Infra Build-Out: 1,70,000 CBM ethane tank and unique third jetty at Dahej to handle ethane, propane and LNG; infra to be open for third-party imports.​

Strategic Role: Supports OPaL’s ethane-based cracker while expanding Petronet’s role beyond LNG into petrochemical feedstock logistics.​

Sources: Petronet LNG Limited press release and stock exchange disclosure dated 3 December 2025.​