Oil and Natural Gas Corporation (ONGC) and Petronet LNG Limited (PLL) have taken a major step toward strengthening India’s petrochemical and energy infrastructure by entering into a long-term Ethane Unloading, Storage and Handling (USH) Services Binding Term Sheet. The agreement spans 15 years, beginning sometime between October and December 2028 and continuing till the fifteenth anniversary of the start date.
Under this arrangement, PLL is developing one of India’s most advanced ethane handling facilities at Dahej, Gujarat. The upcoming infrastructure includes an ethane storage tank of nearly 1,70,000 cubic metres, along with a specialised third jetty designed to accommodate ethane, propane and LNG—making it the first facility of its kind in the country. This jetty is expected to play a crucial role in attracting third-party imports and expanding the scope of India’s downstream industry.
As part of the term sheet, ONGC will reserve around 600 KTPA capacity at PLL’s upcoming ethane storage and handling facilities. PLL will manage the complete chain of receiving, storing and handling ethane imported by ONGC or its subsidiaries, before re-delivering it to the company at the designated delivery point. The agreement will serve as the foundation for future definitive contracts between both parties.
PLL expects to generate roughly ₹5,000 crore in gross revenue over the 15-year term of the contract, which will officially begin in FY 2028–29. This project aligns with PLL’s long-term vision of expanding beyond LNG and building world-class import infrastructure to support India’s growing petrochemical needs. By adding ethane and propane capabilities alongside existing LNG regasification facilities, PLL is positioning itself as a key enabler in the country’s industrial growth.
For ONGC, this agreement marks a critical step in ensuring a steady supply of ethane for ONGC Petro Additions Limited (OPaL), which operates one of India’s largest petrochemical complexes at Dahej. ONGC plans to import ethane using Very Large Ethane Carriers (VLECs) of around 100,000 CBM capacity on long-term, short-term and spot arrangements, ensuring feedstock security for OPaL’s world-scale ethylene cracker unit.
The term sheet was signed on December 3, 2025, at ONGC’s corporate office in New Delhi in the presence of Arun Kumar Singh, Chairman & Managing Director of ONGC, and Akshay Kumar Singh, Managing Director & CEO of PLL. ONGC, being one of the promoters of PLL, is a related party, but the transaction has been structured on an arm’s-length basis as per regulatory norms.
