India’s Petronet LNG inks five-year regas deal with ONGC

Petronet announced on Wednesday that it has signed a master regasification agreement with ONGC, enabling the latter to supply regasified liquefied natural gas from the Dahej terminal to meet the requirements of its downstream consumers.

Petronet said the MRA will remain valid for five years with a provision for further extension based on mutual agreement between the two firms.

“This strategic collaboration reinforces PLL’s role as the nation’s leading LNG infrastructure provider and strengthens ONGC’s efforts to enhance gas availability across the country,” it said.

According to Petronet, the agreement will facilitate regasification services, improve supply reliability, and contribute to the development of a resilient and future-ready gas value chain.

Petronet did not reveal further details about the agreement, including volumes.

Last month, ONGC reserved approximately 600 ktpa of capacity at Petronet’s ethane storage and handling facilities at the Dahej LNG terminal.

India’s largest LNG import terminal currently has a capacity of 17.5 million tonnes per annum (mtpa).

Petronet expects to launch an additional five mtpa capacity at its Dahej LNG terminal by March 2026, according to Petronet LNG’s management.

Mahangar Gas and IOCL

In addition to this deal, Petronet and Mahanagar Gas (MGL) have entered into a master agreement under which Petronet will undertake procurement of LNG cargoes and sell regasified LNG to MGL.

Petronet said that the agreement will remain valid for one year, with a provision for further extension based on mutual agreement between the two firms.

“The agreement offers operational and supply flexibility to MGL for augmentation and optimisation of its gas supply portfolio based on international spot prices,” Petronet said.

Petronet has also signed a memorandum of understanding (MoU) with its shareholder Indian Oil Corporation (IOCL) to collaborate on the development of 25 compressed biogas (CBG) plants nationwide.

Under the agreement, IOCL will provide comprehensive engineering, procurement, and construction management (EPCM) services, while Petronet will spearhead project delivery by securing land, statutory clearances, and managing feedstock and offtake arrangements.

“This partnership leverages IOCL’s deep technical expertise and PLL’s infrastructure leadership to establish a robust model for the CBG sector, providing a scalable framework to support India’s green energy and net-zero goals,” Petronet said.