Petronet LNG Limited has strengthened its market position through two strategic agreements signed on January 27, 2026, expanding its regasification services and RLNG sales capabilities. The agreements were executed during India Energy Week 2026 at ATI ONGC, Goa, marking significant developments in India's LNG sector.

Five-Year Master Regasification Agreement with ONGC

Petronet LNG Limited and Oil and Natural Gas Corporation (ONGC) Limited have entered into a Master Regasification Agreement (MRA) for LNG regasification services at PLL's Dahej regasification terminal. The agreement enables ONGC to supply regasified natural gas to meet downstream consumer requirements.

The MRA aligns with ONGC's strategic objective of supplementing domestic natural gas production with LNG-based supplies to address growing demand across various consuming sectors. ONGC has expressed interest in gas marketing by importing LNG and selling RLNG for market and captive usage, supported by the expansion of gas pipelines, CGD network, and LNG regas terminals in India.

One-Year Master Agreement with Mahanagar Gas Limited

Petronet LNG Limited has also executed a Master Agreement with Mahanagar Gas Limited (MGL) for the sale of Regasified LNG. Under this agreement, PLL will undertake procurement of LNG cargoes and sell RLNG to MGL.

The agreement provides operational and supply flexibility to MGL for augmentation and optimization of its gas supply portfolio based on international spot prices. This execution aligns with PLL's objective of optimal utilization of its regasification infrastructure and provision of integrated LNG sourcing and regasification services to gas consumers, including City Gas Distribution (CGD) entities.

Related Party Transactions

Both agreements involve related party transactions conducted on an arm's length basis. ONGC is one of PLL's promoters, with the CMD of ONGC serving as a Nominee Director on PLL's Board per the Articles of Association. MGL is also a related party as GAIL holds a 32.50% equity stake in MGL, making it a promoter group company.

Company Overview and Infrastructure

Petronet LNG Limited operates as a joint venture promoted by four Oil & Gas Maharatna PSUs—GAIL, ONGC, IOCL, and BPCL—each holding a 12.50% equity stake. Incorporated in 1998, the company commands 43% of India's LNG regasification capacity and manages around 2/3rd of the nation's LNG imports.

PLL operates two LNG regasification terminals at Dahej, Gujarat and Kochi, Kerala. The company is augmenting Dahej terminal capacity from 17.50 MMTPA to 22.50 MMTPA, which is expected to be commissioned shortly. Additionally, PLL is developing a land-based greenfield LNG regasification terminal of 5 MMTPA capacity at Gopalpur, Odisha, and establishing a 750 KTA PDH and 500 KTA PP unit with ethane and propane handling facilities at Dahej, Gujarat.

Prime Minister Narendra Modi has emphasized India's critical need for increased liquefied natural gas (LNG) supplies to meet the growing demand from the country's expanding petrochemicals sector. The statement highlights India's strategic energy requirements as the nation continues to strengthen its industrial manufacturing base.

Growing Energy Demands in Petrochemicals

The Prime Minister's remarks underscore the significant role that LNG plays in India's petrochemical industry, which serves as a key driver of the country's industrial growth. As India's petrochemical sector continues to expand, the demand for reliable and adequate LNG supplies has become increasingly important for maintaining production capacity and supporting future growth initiatives.

Strategic Energy Security Focus

Modi's statement reflects India's broader energy security strategy, particularly in ensuring sufficient natural gas availability for industrial applications. The petrochemicals industry relies heavily on natural gas as both a feedstock and fuel source, making LNG supply security a critical component of the sector's operational sustainability.

Companies like Petronet LNG , which operate LNG import terminals and distribution infrastructure, play a crucial role in meeting India's growing natural gas requirements. The country's LNG import infrastructure continues to be vital for bridging the gap between domestic production and industrial demand.

Industrial Growth Implications

The emphasis on increased LNG requirements signals India's commitment to supporting the petrochemicals sector's expansion plans. This focus on energy supply adequacy is expected to facilitate continued industrial development and help maintain India's position as a growing petrochemical manufacturing hub in the region.

The Prime Minister's statement comes at a time when India is actively working to enhance its energy infrastructure and secure long-term supply arrangements to support various industrial sectors, with petrochemicals being a key beneficiary of these strategic initiatives.