Rs 1200,00,00,000 order: ONGC, IOL, Gail & BPCL-backed company executes regasification agreement with Performance Chemiserve Ltd

Petronet LNG Limited (PLL), a joint venture backed by Oil & Gas Maharatna PSUs, has secured a significant regasification agreement with Performance Chemiserve Limited (PCL), a wholly owned subsidiary of Deepak Mining Solutions Limited and ultimately of Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL). Signed on July 10, 2025, this domestic contract is valued at approximately Rs 1200 crore over its 5.5-year duration, with an upside potential for an additional 20 per cent revenue. The agreement stipulates that PLL will provide regasification services for around 25.6 TBtus of LNG annually at its Dahej terminal, with operations commencing between May and July 2026 and concluding on December 31, 2031.

Under the terms of this pivotal agreement, PLL will be responsible for receiving, storing and regasifying Liquefied Natural Gas (LNG) imported by the DFPCL group. The regasified gas will primarily supply DFPCL group's manufacturing units located in Taloja. This partnership not only secures a substantial revenue stream for PLL but also expands its long-term business horizons as a key energy and infrastructure company. PLL's Dahej terminal, already a flagship facility, is one of the busiest regasification terminals globally, handling around 18 MMTPA of LNG in FY 2024-25.

This regasification agreement follows a prior LNG Sale and Purchase Agreement signed by DFPCL with Equinor, a global energy major. The comprehensive set of agreements reinforces DFPCL Group's strategic integration across the value chain, from natural gas to various downstream products like Ammonia, Nitric Acid, NPK fertilisers, industrial chemicals and mining chemicals. The signing ceremony at PLL’s corporate office in New Delhi was attended by key dignitaries, including Shri A. K. Singh, Managing Director & CEO of PLL and Shri Sailesh C. Mehta, Chairman of PCL and DFPCL, highlighting the strategic importance of this collaboration.

Petronet LNG Limited (PLL) is a cornerstone of India's energy infrastructure, founded in 1998 as a joint venture by four major Oil & Gas PSUs. It accounts for 43 per cent of India's LNG regasification capacity and handles roughly two-thirds of the nation's LNG imports. With an FY 2024–25 turnover of around Rs 51,000 crore, PLL significantly contributes to India's natural gas supply. The company operates two LNG regasification terminals in Dahej, Gujarat and Kochi, Kerala, with a combined capacity of 22.5 MMTPA, which is currently being expanded to further bolster India's energy security.

On Friday, the shares of Petronet LNG Ltd gained 1.03 per cent an intraday high of Rs 308.45 per share from its previous closing of Rs 305.30. The company has a market cap of over Rs 45,000 crore and has been maintaining a healthy dividend payout of 41.3 per cent. The stock is up by 14.3 per cent from its 52-week low of Rs 269.90 per share.

Disclaimer: The article is for informational purposes only and not investment advice.