New Delhi: Oil and Natural Gas Corporation (ONGC) and Petronet LNG Ltd (PLL) have signed a 15-year binding term sheet for ethane unloading, storage and handling (USH) services at PLL’s upcoming facilities in Dahej, Gujarat. The pact enables ONGC to reserve around 600 KTPA of capacity at the new terminal. In its statement, Petronet LNG said that “ONGC shall reserve capacity of approximately 600 KTPA at PLL’s Ethane storage and handling facilities at Dahej, Gujarat.”
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ONGC, in a post on X, 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.”
Petronet LNG said the company “is expected to earn a gross revenue of about Rs 5,000 crore over the total contract duration of 15 years,” based on the commitments in the binding term sheet.
PLL highlighted that its under-construction third jetty will be able to handle ethane, propane and LNG, noting that the project “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. Petronet said it was executed “in the presence of Shri Arun Kumar Singh, Chairman & Managing Director, ONGC and Shri Akshay Kumar Singh, Managing Director & CEO, PLL.”
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.”
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The company added that by partnering with PLL, ONGC “reinforces its commitment to evolving as an integrated energy major across the global energy value chain.”