ONGC and Petronet LNG Limited Sign 15-Year Ethane Unloading, Storage, and Handling Services Binding Term Sheet
Oil and Natural Gas Corporation (ONGC) Limited and Petronet LNG Limited (PLL) have entered into a 15-year Ethane Unloading, Storage and Handling (USH) Services Binding Term Sheet. The agreement involves ONGC reserving capacity for approximately 600 KTPA at PLL’s ethane storage and handling facilities at Dahej, Gujarat. PLL will receive, store, and handle ethane sourced and imported by ONGC and re-deliver ethane to ONGC at the Delivery Point. The transaction is expected to earn PLL a gross revenue of about INR 5,000 crore over the total contract duration of 15 years. The agreement is a significant milestone in PLL’s strategic vision to develop and offer ethane import infrastructure to third parties, thereby expanding its business portfolio beyond LNG and strengthening its position in India’s petrochemical and energy value chain.
Key Highlights
- ONGC and PLL sign a 15-year USH Services Binding Term Sheet
- PLL to develop ethane unloading, storage, and handling facilities with a storage tank capacity of approx. 1,70,000 Cubic Meters at Dahej, Gujarat
- PLL to earn a gross revenue of about INR 5,000 crore over the total contract duration of 15 years
- PLL's under-construction third jetty will facilitate unloading, storage, and handling ethane, propane and LNG at Dahej
- Agreement provides ONGC with assured capacity booking for the import of ethane to meet the feedstock requirements of OPaL