Petronet LNG

Petronet LNG Limited is an Indian energy company established in 1998 to support the development of the country's liquefied natural gas (LNG) supply chain. It was formed as a government-backed joint venture promoted by four major Indian public-sector energy companies: the Gas Authority of India Limited (GAIL), Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL). Its principal business is the import of LNG, its receipt and storage at coastal terminals, and its conversion back into gaseous natural gas for delivery to Indian customers. The company's main asset is the Dahej LNG receiving and regasification terminal in Gujarat. Dahej was developed as India's first LNG receiving and regasification terminal and became the core of Petronet LNG's operating network. Its nominal capacity was expanded from an initial 15 million tonnes per annum to approximately 17.5 million tonnes per annum. The terminal is connected to India's gas transmission system and serves industrial, power, fertilizer, city-gas and other customers through the domestic natural-gas market. Petronet LNG's second major facility is the Kochi LNG terminal in Kerala. Located at Puthuvypeen near the entrance to Cochin Port, the terminal began operations in August 2013 and has a stated capacity of 5 million tonnes per annum. Its marine infrastructure is designed to receive LNG carriers across a range of sizes, including vessels with capacities from approximately 65,000 cubic metres to 216,000 cubic metres. The terminal also supports associated logistics and downstream supply activity in southern India, although its utilization and market access have depended on the development of regional pipeline connections and demand. In addition to basic regasification, Petronet LNG provides or has developed services including LNG storage, reloading, bunkering, gassing-up and cooling-down, and LNG truck loading. These capabilities allow the company to serve both pipeline-connected customers and users reached through road-based distribution. Its commercial position is based on long-term LNG procurement, terminal capacity management and access to India's expanding natural-gas market rather than on upstream exploration or petroleum refining. Petronet has maintained long-term supply relationships with QatarEnergy LNG and has also explored international partnerships to secure additional LNG. In 2019 it signed a non-binding memorandum with United States-based Tellurian concerning a possible investment in the Driftwood LNG project and prospective LNG purchases. The arrangement was terminated in November 2020 after changing LNG-market conditions weakened the investment case. In February 2024, Petronet signed a new long-term agreement with QatarEnergy for 7.5 million metric tonnes of LNG per year from 2028 through 2048, renewing a major source of supply after the existing agreement's scheduled expiry. The company has considered expansion beyond Dahej and Kochi. A proposed third terminal at Gangavaram in Andhra Pradesh was ultimately dropped in October 2019. Petronet has also pursued broader infrastructure and downstream opportunities, including a 2024 memorandum with Sri Lanka's LTL Holdings concerning infrastructure development for the Sobadhanavi combined-cycle power plant near Colombo. Petronet LNG remains focused on LNG importation and regasification in India, while evaluating related energy and petrochemical opportunities.

Petronet LNG was created in 1998 as part of the Government of India's effort to establish an LNG import and regasification industry. The company was promoted by GAIL, ONGC, Indian Oil Corporation and Bharat Petroleum Corporation, bringing together the country's principal public-sector gas, exploration, refining and marketing businesses. Its formation reflected India's need to diversify its energy supply, develop natural-gas infrastructure and introduce imported LNG to regions not adequately served by domestic gas production. Petronet's first major project was the Dahej LNG terminal in Gujarat. The facility became India's first LNG receiving and regasification terminal and was developed to receive LNG carriers, store the product in cryogenic form and convert it into pipeline-quality natural gas. Dahej initially had a capacity of 15 million tonnes per year and was subsequently expanded to approximately 17.5 million tonnes per year. Its location on India's west coast and connections to the national gas network made it the company's central operating asset and an important entry point for imported gas. The company developed a second terminal at Puthuvypeen near Cochin Port in Kerala. The Kochi facility was commissioned and began operations in August 2013, with a stated capacity of 5 million tonnes per year. Its jetty was designed to handle LNG carriers ranging from approximately 65,000 cubic metres to 216,000 cubic metres, as well as suitable smaller vessels. The terminal broadened Petronet's geographic reach into southern India and was intended to support gas demand from industrial, commercial, power and other customers in the region. Petronet's activities have expanded beyond simple gasification. Its terminal infrastructure supports LNG storage and reloading, bunkering, gassing-up and cooling-down services, and loading LNG into road tankers. These services are relevant to India's developing gas economy, in which pipeline infrastructure, industrial demand and access to small-scale LNG can vary considerably by region. The company's business model combines long-term supply contracts with terminal operations and the sale or delivery of regasified natural gas. Long-term procurement has been an important part of Petronet's history. The company established a significant supply relationship with QatarEnergy LNG for deliveries to India. It also explored new international supply and investment opportunities. In September 2019, Petronet signed a non-binding memorandum with Tellurian regarding a potential investment in the Driftwood LNG project in Louisiana and possible purchases of up to 5 million tonnes of LNG annually. The arrangement was not completed and was terminated in November 2020, when lower LNG prices and the changed commercial outlook made the proposed investment less attractive. Petronet also considered a third import terminal at Gangavaram in Andhra Pradesh, with a proposed capacity of 5 million tonnes per year. That plan was dropped in October 2019. The decision left Dahej and Kochi as the company's principal LNG terminal assets. In February 2024, Petronet entered into a new long-duration supply agreement with QatarEnergy for 7.5 million metric tonnes per year from 2028 through 2048. The contract was described as a renewal of an existing arrangement scheduled to expire in 2028, reinforcing Qatar as a central source of Petronet's imported LNG. The company has also explored regional energy infrastructure outside India. In August 2024, Petronet signed a memorandum with Sri Lanka's LTL Holdings concerning infrastructure development for the Sobadhanavi combined-cycle power plant at Kerawalapitiya, north of Colombo. This initiative illustrates the company's interest in applying its LNG and gas-infrastructure capabilities to wider regional projects, although the memorandum itself does not establish that the project was completed. Petronet LNG is a listed Indian energy company whose core identity remains tied to LNG importing, terminal operation and regasification. Dahej supplies the scale of the business, while Kochi provides a southern-market presence. The company's future development is shaped by Indian gas demand, pipeline connectivity, the economics of imported LNG, long-term supply commitments and the possible use of LNG in power, industry, transport and smaller distributed applications.

• 2024

  QatarEnergy supply agreement renewed

  [1]Petronet LNGen.wikipedia.org

  Petronet agreed to receive 7.5 million metric tonnes of LNG annually from QatarEnergy from 2028 through 2048.

• 2024

  Sri Lankan infrastructure memorandum

  [1]Petronet LNGen.wikipedia.org

  Petronet and LTL Holdings signed a memorandum concerning infrastructure for the Sobadhanavi combined-cycle power plant near Colombo.

• 2020

  Tellurian arrangement terminated

  [1]Petronet LNGen.wikipedia.org

  The proposed Driftwood-related arrangement was terminated after market conditions weakened the investment case.

• 2019

  Dahej expansion and Gangavaram plan

  [1]Petronet LNGen.wikipedia.org

  Dahej's stated capacity reached approximately 17.5 million tonnes per year, while the proposed third terminal at Gangavaram was dropped later in the year.

• 2019

  Tellurian memorandum signed

  [1]Petronet LNGen.wikipedia.org

  Petronet signed a non-binding memorandum concerning a possible Driftwood LNG investment and prospective LNG purchases from Tellurian.

• 2013

  Kochi terminal commissioned

  [1]Petronet LNGen.wikipedia.org

  The 5-million-tonne-per-year Kochi LNG terminal in Kerala began operations in August.

• 2004

  Dahej LNG terminal begins operations

  [1]Petronet LNGen.wikipedia.org

  Petronet's Dahej facility in Gujarat became India's first LNG receiving and regasification terminal and the foundation of the company's import business.

• 1998

  Company formed

  [1]Petronet LNGen.wikipedia.org

  Petronet LNG was established by the Government of India through a joint venture promoted by GAIL, ONGC, Indian Oil Corporation and Bharat Petroleum.

A major Indian LNG importer and terminal operator providing coastal LNG receiving, storage, regasification and related logistics services to the domestic gas market.

• LNG receiving and regasification

  Dahej LNG terminal

  Petronet's principal LNG facility is located at Dahej in Gujarat on India's west coast. It receives imported LNG carriers, stores LNG in cryogenic tanks and regasifies the product for delivery into the Indian gas network. The terminal was developed with an initial capacity of 15 million tonnes per year and later expanded to approximately 17.5 million tonnes per year. It is the company's largest operating asset and a major entry point for imported natural gas in India.

• LNG receiving and regasification · 2013

  Kochi LNG terminal

  The Kochi terminal is situated at Puthuvypeen near the entrance to Cochin Port in Kerala. It began operations in August 2013 and has a stated capacity of 5 million tonnes per year. Its marine facilities can accommodate LNG carriers of several sizes, including vessels from approximately 65,000 cubic metres to 216,000 cubic metres. The terminal supports gas supply and LNG logistics for southern India.

• Natural-gas supply

  Regasified natural gas

  Petronet converts imported LNG back into gaseous natural gas at its coastal terminals and supplies it to customers through connected gas infrastructure. The gas can serve industrial, fertilizer, power, city-gas and other domestic-market users, subject to network availability and commercial arrangements.

• Energy infrastructure services

  LNG logistics and ancillary terminal services

  Petronet's terminal platform includes services associated with LNG handling and distribution, including storage, reloading, bunkering, gassing-up, cooling-down and LNG truck loading. These capabilities extend the company's role beyond pipeline regasification and support marine, road-based and other specialized LNG applications.

• 2024

  Renew long-term Qatar LNG supplyStrategy

  Background

  Petronet needed to maintain a major source of imported LNG after the scheduled expiry of its existing Qatar-related supply arrangement.

  Action taken

  The company signed an agreement with QatarEnergy for 7.5 million metric tonnes of LNG per year from 2028 to 2048.

  Aftermath

  The agreement reinforced QatarEnergy as a long-term supplier for Petronet's Indian market operations.

  Source

• 2024

  Explore Sri Lankan power-infrastructure cooperationStrategy

  Background

  Petronet examined opportunities to apply its LNG and energy-infrastructure capabilities in a regional market.

  Action taken

  It signed a memorandum with LTL Holdings concerning infrastructure development for the Sobadhanavi combined-cycle power plant at Kerawalapitiya, Sri Lanka.

  Aftermath

  The memorandum indicated prospective cooperation, but the available reference does not establish project completion.

  Source

• 2019

  Evaluate participation in Tellurian's Driftwood LNG projectM&A

  Background

  Petronet sought to broaden its international LNG supply options and consider participation in a United States LNG development.

  Action taken

  The company signed a non-binding memorandum concerning a possible stake in Driftwood and prospective annual LNG purchases.

  Aftermath

  The arrangement was terminated in November 2020 after low LNG prices weakened the investment rationale.

  Source

• 2019

  Drop proposed Gangavaram LNG terminalStrategy

  Background

  Petronet had considered a third LNG import and regasification terminal at Gangavaram in Andhra Pradesh.

  Action taken

  The proposed 5-million-tonne-per-year project was dropped in October 2019.

  Aftermath

  Dahej and Kochi remained Petronet's principal LNG terminal projects.

  Source

• 2024

  Petronet signs long-term LNG supply agreement with QatarEnergy[1]Petronet LNGen.wikipedia.org

  Other

  Petronet LNG agreed to purchase 7.5 million metric tonnes of LNG per year from QatarEnergy from 2028 to 2048. The agreement renews a substantial existing supply relationship.

• 2024

  Petronet and Sri Lankan partner sign infrastructure memorandum[1]Petronet LNGen.wikipedia.org

  Other

  Petronet LNG and Sri Lanka's LTL Holdings signed a memorandum concerning infrastructure development for the Sobadhanavi combined-cycle power plant at Kerawalapitiya near Colombo.

• 2020

  Petronet ends proposed Tellurian Driftwood arrangement[1]Petronet LNGen.wikipedia.org

  Other

  The non-binding Tellurian arrangement was terminated after lower LNG prices and changing market conditions reduced the commercial attractiveness of the proposed investment.

• 2019

  Petronet signs memorandum with Tellurian over Driftwood LNG participation[1]Petronet LNGen.wikipedia.org

  M&A · Other

  Petronet LNG signed a non-binding memorandum with Tellurian concerning a possible stake in the Driftwood LNG project in Louisiana and prospective annual LNG purchases. The proposed arrangement was later terminated in November 2020.

1. 1Petronet LNGen.wikipedia.org
2. 2Petronet LNG official websitepetronetlng.com