Petronet LNG/Deepak enter US$140 mn-LNG agreement

Indian oil/gas firm Petronet LNG (Petronet) and Performance Chemiserve, a subsidiary within Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL), have announced a five-year regasification agreement.

This deal is expected to generate revenue of around US$140 million for Petronet, with the potential for an additional 20% revenue increase over the contract’s duration.

The deal involves the regasification of liquefied natural gas (LNG) to be imported by the Deepak Fertilisers group for use at its manufacturing units at Taloja.

Under the agreement, Petronet will handle the reception, storage and regasification of approximately 25.6 trillion British thermal units of LNG a year after an initial ramp-up period in 2026, at its Dahej terminal in Gujarat.

This agreement follows a previous LNG sale and purchase agreement signed by DFPCL with Norway’s energy major Equinor.

Petronet processed around 18 million tonnes per annum (mtpa) of LNG in FY24-FY25 through its two terminals at Dahej and Kochi, Kerala, with the former standing as the flagship and one of the busiest regasification terminals worldwide.

Additionally, Petronet is establishing new units at the Dahej terminal and building a third jetty capable of handling LNG, ethane, and propane.