New Delhi: ONGC and Petronet LNG Ltd (PLL) have entered into a 15-year agreement for ethane unloading, storage and handling services at PLL’s upcoming facilities in Dahej, Gujarat, marking a major step in expanding India’s ethane import infrastructure.

Under the binding term sheet, ONGC will reserve about 600 KTPA of capacity at the new terminal. Petronet LNG said in its statement that “ONGC shall reserve capacity of approximately 600 KTPA at PLL’s Ethane storage and handling facilities at Dahej, Gujarat”.

In a post on X, ONGC described the agreement as “a landmark first for any Indian CPSE,” saying it had executed “a long-term Ethane Unloading, Storage & Handling (USH) Services Agreement with @PetronetLNGLtd… enabling 600 KTPA terminalling and handling of Ethane at PLL’s upcoming Dahej facilities”.

PLL said the agreement is expected to generate gross revenue of around Rs 5,000 crore during the 15-year period. The company noted that its third jetty, which is currently under construction, will be equipped to handle ethane, propane and LNG. According to PLL, the facility “will be first-of-its-kind in India which shall be made available for third-party imports”.

The term sheet was signed on December 3 in New Delhi. ONGC said the collaboration “strengthens India’s Ethane import capability, secures long-term feedstock supply for @OpalIndiaIn’s petrochemical complex at Dahej, and supports the availability of affordable petrochemicals for the nation in the long run”.

The company also said that by working with PLL, it “reinforces its commitment to evolving as an integrated energy major across the global energy value chain”.

BI Bureau