Oil and Natural Gas Corporation (ONGC) and Petronet LNG (PLL) have completed a 15-year binding term sheet for Ethane Unloading, Storage, and Handling (USH) services. This strategic settlement targets to stable a long-term period, dependable feedstock supply for ONGC’s petrochemical operations.
Under the agreement, Petronet LNG will offer unloading, storage, and managing services for ethane imported via ONGC at its upcoming centers in Dahej, Gujarat.
ONGC has allotted a capability of approximately 600-Kilo Tons Per Annum (KTPA) at PLL’s new Dahej terminal infrastructure.
To facilitate this, Petronet LNG is evolving a new, first-of-its-kind third jetty and an ethane storage tank with a capacity of around 170,000 cubic meters, capable of coping with ethane, propane, and LNG.
The offerings beneath the agreement are planned to commence between October and December 2028. The deal is predicted to create around Rs. 5,000 crore in gross sales for Petronet LNG over the 15-yr contract period.
The Ethane Unloading, Storage and Handling (USH Services) Term Sheet was signed on December 03, 2025, at ONGC’s company 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.
The agreement is a landmark first for an Indian central public sector enterprise (CPSE) within the ethane region. It guarantees a constant supply of feedstock for the ONGC Petro Additions Limited (OPaL) petrochemical complex in Dahej, which makes use of ethane as a primary input.
This collaboration helps the growth of India’s petrochemical industry by leveraging world-class import infrastructure for opportunity feedstocks beyond traditional LNG.
