ONGC and Petronet LNG Seal Landmark $600 Million Ethane Deal

Oil and Natural Gas Corporation (ONGC) and Petronet LNG (PLL) have signed a 15-year term sheet for ethane unloading, storage, and handling (USH) services.

Beginning between October and December 2028, PLL will develop dedicated ethane storage and handling facilities at Dahej, Gujarat, with an estimated capacity of 1,70,000 cubic metres. The company is also constructing a third jetty at Dahej to accommodate ethane and propane alongside LNG operations.

Under the agreement, ONGC will reserve approximately 600 KTPA of capacity at PLL’s facilities. PLL will receive, store, and handle ethane imported by ONGC and deliver it at the designated point. The arrangement is projected to generate around ₹5,000 crore in revenue over the 15-year period.

As part of its long-term supply strategy for ONGC Petro Additions Ltd. (OPaL), ONGC plans to import ethane via very large ethane carriers (VLECs) with capacities of about 100,000 CBM, sourced through a combination of long-term, short-term, and spot contracts. OPaL’s petrochemical complex in Dahej—home to a world-scale ethylene cracker—uses ethane as its primary feedstock.

News by Rahul Yelligetti.