ONGC and Petronet LNG Ink ₹5,000 Crore Deal for 15-Year Ethane Services

Oil and Natural Gas Corporation (ONGC) Limited and Petronet LNG Limited have signed a significant 15-year agreement for Ethane Unloading, Storage, and Handling (USH) Services. This binding term sheet, set to commence between October and December 2028, marks a strategic move in India's energy infrastructure development.

Key Details of the Agreement

Duration: 15 years
Commencement: Between October-December 2028
ONGC's Commitment: Reservation of approximately 600 KTPA capacity at Petronet LNG's ethane storage facilities in Dahej, Gujarat
Estimated Revenue for Petronet LNG: About ₹5,000 crore over the contract duration

Strategic Implications

This agreement represents a significant step in India's petrochemical and energy value chain. For ONGC, it ensures a reliable ethane supply for its subsidiary, ONGC Petro Additions Limited (OPaL), which operates one of India's largest petrochemical complexes in Dahej, Gujarat.

Financial Impact on Petronet LNG

The deal is expected to have a positive impact on Petronet LNG's financials. To put this in perspective, let's look at some key financial metrics from Petronet LNG's recent balance sheet:

Metric	FY 2025 (₹ Crore)	YoY Change
Total Assets	26,800.90	6.88%
Current Assets	15,196.10	17.90%
Total Equity	19,382.40	14.26%
Reserve & Surplus	17,882.40	15.65%

The expected revenue of ₹5,000 crore from this deal over 15 years translates to an average of about ₹333.33 crore per year. This represents a significant boost to Petronet LNG's revenue stream, considering its current financial position.

Infrastructure Development

Petronet LNG is developing ethane unloading, storage, and handling facilities at Dahej, including:

Ethane storage tank capacity of approximately 1,70,000 cubic meters
A unique third jetty capable of handling Ethane and Propane in addition to LNG

This infrastructure development aligns with Petronet LNG's strategic vision to expand its business portfolio beyond LNG and strengthen its position in India's petrochemical and energy value chain.

Conclusion

The agreement between ONGC and Petronet LNG represents a win-win situation for both companies. It provides ONGC with assured capacity for ethane imports, crucial for its petrochemical operations, while offering Petronet LNG a stable, long-term revenue stream. This deal also underscores the growing importance of ethane in India's energy mix and the country's efforts to develop world-class import infrastructure for various energy products.

As India continues to expand its petrochemical sector, such strategic partnerships and infrastructure developments will play a crucial role in ensuring a reliable supply of key feedstocks like ethane, contributing to the sector's growth and competitiveness on the global stage.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.87%	-2.31%	-5.72%	-11.94%	-20.79%	+4.96%

Petronet LNG Limited , a key player in India's energy sector, has declared an interim dividend of Rs. 7 per share for the financial year 2025-26. The company's board made this decision on November 7, 2025, setting November 14, 2025, as the record date for dividend eligibility.

Dividend Details and Tax Implications

The interim dividend, representing a 70% payout on the face value of Rs. 10 per share, comes with comprehensive tax deduction at source (TDS) guidelines for shareholders. Petronet LNG has provided detailed instructions for both resident and non-resident shareholders regarding applicable TDS rates, exemptions, and required documentation.

Key Points for Shareholders

Record Date: November 14, 2025
Dividend Amount: Rs. 7 per share (70% of face value)
Payment Timeline: Within 30 days of the declaration date

Tax Deduction Guidelines

Petronet LNG has outlined specific TDS provisions for different categories of shareholders:

Shareholder Category	TDS Rate	Key Requirements
Resident Individuals	10%	- No TDS if total dividend ≤ Rs. 10,000 in FY 2025-26 - Form 15G/15H for tax exemption
Resident Non-Individuals	Varies	- Specific documentation for different entities (e.g., Insurance companies, Mutual Funds, AIFs)
Non-Resident Shareholders	20% or as per tax treaty	- Tax Residency Certificate - Form 10F - Declaration of beneficial ownership

Important Dates and Submission Process

Last Date for Document Submission: November 21, 2025, by 11:59 P.M. (IST)
Submission Method: Shareholders can email required documents to tds@bigshareonline.com

Company's Statement

Rajan Kapur, Company Secretary of Petronet LNG, stated, "We are committed to ensuring a smooth dividend distribution process while complying with all tax regulations. We urge our shareholders to carefully review the TDS guidelines and submit the necessary documentation within the specified timeframe."

Investor Considerations

Shareholders are advised to:

Verify their PAN-Aadhaar linkage status to avoid higher TDS rates
Submit required forms and declarations before the deadline
Consult tax advisors for personalized guidance on TDS implications

Petronet LNG's proactive approach in providing detailed tax guidance demonstrates its commitment to shareholder transparency and regulatory compliance. Investors should carefully review the company's communication to ensure proper tax treatment of their dividend income.

Disclaimer: This article is for informational purposes only and does not constitute tax or investment advice. Shareholders are encouraged to consult with their financial advisors for personalized guidance.