ONGC and Petronet LNG ink 15-years deal for ethane services

Petronet LNG is developing a new, first-of-its-kind third jetty and an ethane storage tank with a capacity of around 170,000 cubic meters

Oil and Natural Gas Corporation (ONGC) and Petronet LNG (PLL) have executed a 15-year binding term sheet for Ethane Unloading, Storage, and Handling (USH) services. This strategic agreement aims to secure a long-term, reliable feedstock supply for ONGC's petrochemical operations.

Under the agreeent, Petronet LNG will provide unloading, storage, and handling services for ethane imported by ONGC at its upcoming facilities in Dahej, Gujarat.

ONGC has reserved a capacity of approximately 600 Kilo Tonnes Per Annum (KTPA) at PLL's new Dahej terminal infrastructure.

To facilitate this, Petronet LNG is developing a new, first-of-its-kind third jetty and an ethane storage tank with a capacity of around 170,000 cubic meters, capable of handling ethane, propane, and LNG.

The services under the agreement are scheduled to commence between October and December 2028. The deal is anticipated to generate approximately Rs. 5,000 crore in gross revenue for Petronet LNG over the 15-year contract period.

The Ethane Unloading, Storage and Handling (USH Services) Term Sheet was signed on December 03, 2025, at ONGC's corporate office in New Delhi in the presence of Arun Kumar Singh, Chairman & Managing Director of ONGC and Akshay Kumar Singh, Managing Director & CEO of PLL.

The agreement is a landmark first for an Indian central public sector enterprise (CPSE) in the ethane sector. It ensures a consistent supply of feedstock for the ONGC Petro Additions Limited (OPaL) petrochemical complex in Dahej, which uses ethane as a primary input.

This collaboration supports the growth of India's petrochemical industry by leveraging world-class import infrastructure for alternative feedstocks beyond traditional LNG.