Oil and Natural Gas Corporation (ONGC) Limited and Petronet LNG Limited (PLL) have signed a binding 15-year Term Sheet for Ethane Unloading, Storage and Handling (USH) services. Operations are scheduled to begin between October and December 2028 and will continue for fifteen years from the commencement date.
PLL is developing dedicated ethane unloading and storage facilities in Dahej, Gujarat, with an estimated storage capacity of approximately 1,70,000 cubic meters. In addition, PLL is constructing a specialized third jetty capable of managing ethane and propane imports, along with LNG.
Under the signed arrangement, ONGC will reserve around 600 KTPA capacity at PLL’s ethane infrastructure in Dahej. PLL will unload, store and handle ethane imported by ONGC or its subsidiaries and deliver it back to ONGC at the agreed delivery point. This Term Sheet will serve as the foundation for the execution of definitive agreements. Based on the agreed framework, PLL expects to generate approximately ₹5,000 crore in gross revenue over the 15-year period. The transaction is projected to commence in FY 2028–2029.
This engagement marks a pivotal step in PLL’s expansion strategy, enabling the company to diversify beyond LNG and position itself as a key player in India’s petrochemical and broader energy logistics ecosystem. The upcoming multi-cargo jetty at Dahej will be the first facility in the country capable of handling ethane, propane and LNG at a single terminal, and is expected to support third-party imports.
As part of its long-term feedstock strategy for ONGC Petro Additions Limited (OPaL), ONGC plans to procure ethane through Very Large Ethane Carriers (VLECs) of around 100,000 CBM capacity under long-term, short-term and spot arrangements. The agreement ensures guaranteed capacity to meet OPaL’s ethane demand.
OPaL — a subsidiary of ONGC — operates one of India’s largest petrochemical complexes at Dahej, featuring a world-class ethylene cracker facility that uses ethane as its primary raw material.
The Term Sheet was executed on December 03, 2025, at ONGC’s corporate headquarters in New Delhi in the presence of Arun Kumar Singh, Chairman & Managing Director of ONGC, and Shri Akshay Kumar Singh, Managing Director & CEO of PLL. As a promoter, ONGC holds equity in PLL, and this transaction has been concluded on an arm’s-length basis.
Petronet LNG Limited is a joint venture promoted by four Maharatna PSUs—GAIL, ONGC, IOCL and BPCL—each holding a 12.5% equity share. Established in 1998, PLL handles approximately two-thirds of India’s LNG imports and operates 43% of the nation’s LNG regasification capacity. The company reported revenue of approximately INR 51,000 crore in FY 2024–25.
PLL operates LNG terminals in Dahej, Gujarat, and Kochi, Kerala, with a combined regasification capacity of 22.5 MMTPA. Expansion activities at Dahej will further enhance this capacity. PLL is also developing a greenfield LNG terminal in Gopalpur, Odisha, and constructing a PDH and PP petrochemical complex with integrated ethane and propane handling systems in Dahej.
ONGC is India’s leading integrated energy enterprise involved in exploration, production, refining, petrochemicals and marketing of hydrocarbons. The company accounts for around 71% of India’s domestic crude oil and natural gas production.
ONGC Petro Additions Limited (OPaL), a subsidiary in which ONGC holds a 95.69% stake, operates a major petrochemical complex covering 5 sq. km at Dahej. The facility has an annual production capacity of 1.4 million tonnes of polymers and 0.5 million tonnes of chemicals.
