In a significant development for India’s energy and petrochemical sectors, Petronet LNG Limited (PLL) and Oil and Natural Gas Corporation (ONGC) have finalized a 15-year agreement that promises to enhance ethane handling infrastructure. The deal, centered around Ethane Unloading, Storage, and Handling (USH) services, was officially signed on December 3, 2025, at ONGC’s headquarters in New Delhi.
Under the terms of this long-term commitment, PLL will develop specialized facilities at Dahej, Gujarat, including a novel third jetty and an ethane storage tank with a capacity of approximately 170,000 cubic meters. This infrastructure is designed to handle not just ethane but propane and LNG as well, marking a significant upgrade to India’s existing energy import facilities.
ONGC has agreed to reserve a capacity of about 600 KTPA at PLL’s upcoming facilities. The arrangement stipulates that PLL will manage the reception, storage, and handling of ethane imported by ONGC or its affiliates, and ensure its delivery back to ONGC at specified points.
This strategic partnership is poised to generate an estimated gross revenue of ₹5,000 crore for PLL over the duration of the contract, which spans from FY 2028-2029. The initiative is part of PLL’s broader strategy to diversify its service offerings beyond LNG and play a pivotal role in the enhancement of India’s petrochemical and energy value chain.
The construction of the third jetty at Dahej is particularly noteworthy as it represents India’s first such facility capable of accommodating third-party ethane, propane, and LNG imports. This development underscores PLL’s commitment to supporting the growth of downstream industries, including the petrochemical sector, through the provision of world-class import infrastructure.
In alignment with its long-term supply strategy, ONGC will procure ethane through Very Large Ethane Carriers (VLECs), each with a capacity of about 100,000 CBM. This will secure the feedstock requirements for ONGC Petro Additions Limited (OPaL), a subsidiary of ONGC that operates one of the largest petrochemical complexes in India at Dahej. The complex is notably equipped with a world-scale ethylene cracker unit that primarily uses ethane.
The agreement was inked by the Chairman & Managing Director of ONGC and Shri Akshay Kumar Singh, Managing Director & CEO of PLL, marking a new chapter in the collaboration between these two giants of India’s energy sector. This partnership not only signifies a leap forward in addressing the critical infrastructure needed for energy and petrochemical operations but also reinforces the commitment of both PLL and ONGC to bolstering India’s economic growth through strategic industrial advancements.
