Petronet LNG Inks ₹1,200 Crore Regasification Deal with Deepak Fertilisers Subsidiary

Petronet LNG Ltd has signed a ₹1,200 crore regasification agreement with Performance Chemiserve Ltd, a Deepak Fertilisers subsidiary. The deal spans 5.5 years and will see LNG supply from mid-2026 until the end of 2031 through Petronet’s Dahej terminal.

Petronet's Strategic Deal to Supply LNG 

The ₹1,200 crore agreement, inked on July 10, 2025, involves Petronet LNG providing regasification services for approximately 25.6 TBTUs of LNG annually to Performance Chemiserve Ltd. Operations will begin between May and July 2026 and continue through December 31, 2031. 

The regasified LNG will primarily support Deepak Fertilisers’ production facilities at Taloja in Maharashtra. The Dahej terminal will serve as the key supply hub, reaffirming its position as one of the busiest global regasification locations.

Long-Term Business Visibility and Revenue Upside

The agreement offers an embedded potential for a 20% revenue upside over the contract duration, enhancing Petronet LNG’s financial visibility. In FY25, Petronet managed about 18 MMTPA of LNG across its Dahej and Kochi terminals, with Dahej contributing significantly. The tie-up strengthens Petronet’s long-term operations while integrating it further into India’s industrial LNG value chain.

Read More: India Projects 10% of LPG Imports from US Commencing 2026: Report!

Collaboration with Deepak Fertilisers 

This deal complements Deepak Fertilisers’ earlier LNG supply arrangement with Norwegian energy company Equinor. With regasification handled by Petronet domestically, the supply chain is expected to gain efficiency and reliability. This collaboration highlights the increasing importance of LNG in India’s industrial chemistry and fertiliser sectors, furthering alignment with cleaner energy sources.

Petronet LNG Share Price Performance

On July 10, 2025, Petronet LNG share price opened at ₹306.00 on NSE, above the previous close of ₹305.60. During the day, it surged to ₹307.60 and dipped to ₹302.95. The stock is trading at ₹305.35 as of 3:24 PM. The stock registered a marginal change of -0.08%.

Over the past week, it has moved up by 1.87%, over the past month, it has moved up by 1.59%, and over the past 3 months, it has moved up by 8.26%.

Conclusion

Petronet LNG's ₹1,200 crore regasification agreement with Deepak Fertilisers’ subsidiary reflects a strategic move to ensure consistent LNG supplies for industrial use. Starting mid-2026, this partnership reinforces Petronet’s operational strengths and plays a vital role in supporting domestic manufacturing with cleaner fuels.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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 securities are subject to market risks. Read all related documents carefully before investing.