Petronet Eyes $1.4 billion Loan to Fund Dahej Petrochemical Project and LNG Terminal

India’s largest natural gas importer, Petronet LNG Ltd., is pursuing a massive loan of ₹120 billion (approximately $1.4 billion) to finance the development of a new petrochemical complex in Dahej, Gujarat, and an LNG terminal in Gopalpur, Odisha, as per news reports. The fundraising marks one of the most significant capital-raising efforts in the company’s history, aimed at expanding its footprint beyond the LNG sector.

Banks Line Up for One of India’s Biggest Local Loans of 2025

As per reports, Several leading domestic lenders, including Axis Bank, State Bank of India, and Union Bank of India are reportedly considering joining the facility. The company has invited bids either from individual banks or consortiums, with SBI Capital Markets appointed as the adviser for the transaction. 

While official comments are still awaited, the scale of the deal positions it among the largest local-currency loans this year, especially amid a cooling Indian loan market that grew just 9.5% as of 27 June, the slowest pace since March 2022, as per a Bloomberg report.

Multi-billion Rupee Project to Drive Diversification

Proceeds from the loan will partly fund the ₹206.85 billion petrochemical complex at Dahej, a strategic move to diversify Petronet’s revenue stream beyond LNG. Additionally, the company is building a five million-tonne land-based LNG terminal at Gopalpur, on the eastern coast in Odisha. 

According to the report, the proposed loan is expected to carry a tenor of over 10 years. Early estimates suggest that pricing could come in below SBI’s current one-month marginal cost of lending rate of 7.95%.

Also Read: Petronet LNG Inks ₹1,200 Crore Regasification Deal with Deepak Fertilisers Subsidiary!

Petronet LNG Share Price Performance 

As of July 24, 2025, at 11:20 AM, Petronet LNG share price is trading at ₹307.25 per share, reflecting a gain of 0.16%. Over the past month, the stock has gained by 2.69%.

Conclusion

Petronet’s ₹120 billion loan bid signals a bold step towards infrastructure expansion and business diversification. With two major projects in the pipeline and strong interest from top Indian banks, the company is poised to strengthen its position in both the petrochemical and LNG sectors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.