ONGC / PLL execute Ethane Unloading, Storage and Handling Services Term Sheet
3rd December 2025
Oil and Natural Gas Corporation (ONGC) Limited and Petronet LNG Limited (PLL) have entered into a 15-Years Ethane Unloading, Storage and Handling (USH) Services Binding Term Sheet (commencing between October – December 2028 and ending on the fifteenth (15th) anniversary of the commencement date)
PLL is developing ethane unloading, storage and handling (USH) facilities with ethane storage tank capacity of approx. 1,70,000 Cubic Meters at Dahej, Gujarat. PLL is also constructing a unique third jetty at Dahej which will be capable of handling Ethane and Propane in addition to LNG
As per the term sheet, ONGC shall reserve capacity of approximately 600 KTPA at PLL’s Ethane storage and handling facilities at Dahej, Gujarat. PLL shall receive, store and handle Ethane sourced and imported by ONGC/its subsidiary or affiliate(s) at Dahej, Gujarat and redeliver Ethane to ONGC at the Delivery Point. The term sheet shall form basis for definitive agreements between the parties
As per the commitments under the binding term sheet, PLL is expected to earn a gross revenue of about Rs 5,000 crore over the total contract duration of 15 years. The transaction under the said term sheet shall commence from FY 2028-2029
It represents 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
PLL’s under-construction unique third jetty will facilitate unloading, storage and handling ethane, propane and LNG at Dahej and will be first-of-its-kind in India which shall be made available for third-party imports. This step of PLL underscores its commitment for enabling growth of downstream industries such as Petrochemical sector through world-class import infrastructure for ethane and propane in addition to its existing LNG regasification infrastructure
As part of its long-term strategy to ensure a reliable and consistent supply of ethane to ONGC Petro Additions Limited (OPaL), ONGC plans to procure and import ethane—via Very Large Ethane Carriers (VLECs) of approximately 100,000 CBM capacity—on long-term, short-term and spot basis. This agreement provides ONGC with assured capacity booking for the import of ethane to meet the feedstock requirements of OPaL. ONGC’s subsidiary, ONGC Petro Additions Limited (OPaL), operates one of India’s largest petrochemical complexes located at Dahej, Gujarat, which includes a world-scale ethylene cracker unit using ethane as the primary feedstock
About Petronet LNG Limited (PLL): Petronet LNG Limited is a joint venture promoted by four Oil & Gas Maharatna PSUs—GAIL, ONGC, IOCL, and BPCL—each holding a 12.5% equity stake. Incorporated in 1998, PLL commands 43% of India's LNG regasification capacity and manages around 2/3rd of the nation’s LNG imports. With a turnover of approximately INR 51,000 crore in FY 2024–25, PLL plays a vital role in India’s energy ecosystem, contributing about 33% of the country’s total natural gas supply. PLL, with its two LNG regasification terminals at Dahej, Gujarat and Kochi, Kerala has a total regasification capacity of 22.5 MMTPA. It is further augmenting Dahej terminal capacity from 17.5 MMTPA to 22.5 MMTPA, which is likely to be commissioned shortly. Further, PLL is also in process of setting up a land based greenfield LNG regasification terminal of 5 MMTPA capacity on East Coast of India at Gopalpur, Odisha. PLL is also setting up a 750 KTA PDH and 500 KTA PP unit including ethane and propane handling facilities at Dahej, Gujarat
About Oil and Natural Gas Corporation (ONGC) Limited: Oil and Natural Gas Corporation (ONGC) Limited is a Maharatna public sector enterprise and India’s leading integrated energy company, engaged in a wide range of business activities across the hydrocarbon value chain. ONGC’s operations span from exploration and production of hydrocarbons to refining, petrochemicals, and distribution of petroleum products. ONGC is the largest crude oil and natural gas Company in India, contributing around 71 per cent to Indian domestic production. ONGC Petro Additions Limited (OPaL) is a subsidiary of Oil and Natural Gas Corporation Limited (ONGC), in which ONGC holds a 95.69% equity stake in the company. OPaL’s mega petrochemical plant is spread over 5 sq. km in Dahej, Gujarat with a capacity to produce 14 lakh tons of Polymers & 5 Lakh tons of chemicals - 1,100 KTPA Ethylene, 400 KTPA Propylene and the associated units consist of Pyrolysis Gasoline Hydrogenation Unit, Butadiene Extraction Unit and Benzene Extraction Unit