ONGC and Petronet LNG Signs 15-Year Agreement for Ethane Handling Services

Oil and Natural Gas Corporation and Petronet LNG have entered into a 15-year arrangement covering the unloading, storage and handling of ethane. The contract is considered to begin between October and December 2028.  

ONGC has secured about 600 KTPA of capacity at the ethane facilities planned at Dahej, according to the filing. 

Facilities Planned at Dahej 

Petronet LNG is developing a 170,000-cubic-metre ethane storage tank and constructing a third jetty at the Dahej terminal.  

The jetty is designed to handle ethane, propane, and LNG, widening the types of cargo that can be managed at the site. Once operational, Petronet will receive, store, and deliver ethane imported by ONGC or its subsidiaries. 

Revenue Outlook and Timelines 

The filing states that Petronet expects around ₹5,000 crore in gross revenue over the full contract term. Commercial operations linked to this agreement are planned for FY2028–29, following the completion of the storage and jetty facilities. No additional financial breakdown has been provided. 

Ethane Supply Plan Linked to OPaL 

The agreement forms part of ONGC’s long-term feedstock plan for ONGC Petro Additions Ltd.  

ONGC plans to source ethane using very large ethane carriers of roughly 100,000 CBM under long-term, short-term and spot contracts. The capacity reserved at Dahej ensures ONGC steady access to handling infrastructure needed for OPaL’s operations. 

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Share Price Movement 

As of December 04, 2025, 09:54 am, ONGC share price was trading at ₹240.45, a 0.22% increase from the previous closing price.  

Whereas Petronet LNG share price was at ₹279, a 3.81% increase from the previous closing price. 

Conclusion 

The pact outlines the handling framework for ONGC’s future ethane imports and fits with Petronet’s expansion of facilities at Dahej. The terms provide defined capacity and timelines as both firms prepare for the start of operations in FY2028-29. 

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