Petronet LNG Executes ₹12,000 Crore Loan Agreement for Dahej Petrochemicals Project

Petronet LNG has executed a comprehensive loan agreement worth ₹12,000 crores with a banking consortium led by State Bank of India (SBI) and Bank of Baroda. The secured Rupee Term Loan facility will specifically finance the company's ambitious petrochemicals project at Dahej, Gujarat, along with other capital expenditure requirements.

Loan Agreement Structure

The loan agreement involves equal participation from both consortium members, with each bank providing ₹6,000 crores under SBI's leadership. This structured approach ensures balanced risk distribution while providing Petronet LNG with substantial financial resources for its strategic expansion into petrochemicals manufacturing.

Parameter:	Details
Total Loan Amount:	₹12,000.00 crores
Lead Bank:	State Bank of India
Consortium Partner:	Bank of Baroda
Individual Bank Share:	₹6,000.00 crores each
Loan Type:	Secured Rupee Term Loan

Petrochemicals Project Specifications

The loan will finance a comprehensive petrochemicals project featuring a 750 KTPA Propane Dehydrogenation (PDH) unit and a 500 KTPA Polypropylene (PP) facility. The project, located at Dahej, Gujarat, will also include propane and ethane handling facilities, representing a significant expansion of Petronet LNG's operational capabilities beyond traditional gas distribution.

Project Component:	Capacity/Details
PDH Unit:	750 KTPA
Polypropylene Plant:	500 KTPA
Location:	Dahej, Gujarat
Additional Facilities:	Propane & Ethane Handling
Project Name:	PDH-PP Project

Security and Collateral Framework

The loan agreement includes comprehensive security arrangements with multiple layers of protection for lenders. The security structure features first pari-passu charges on both movable and immovable properties related to the PDH-PP project, along with second charges on existing movable fixed assets that will be released upon project commissioning.

Security Type:	Coverage
Primary Movable Charge:	Plant machinery, equipment, tools, vehicles
Immovable Property Charge:	Buildings, structures (excluding project land)
Secondary Charge:	Existing movable fixed assets
Charge Sharing:	Pari-passu among lenders and bondholders

Strategic Business Expansion

This petrochemicals project represents Petronet LNG's strategic diversification from its core gas distribution business into value-added petrochemical manufacturing. The PDH-PP project will enable the company to produce polypropylene, a key plastic polymer with extensive industrial applications, while leveraging its existing infrastructure and expertise in gas handling operations at the Dahej facility.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.56%	-3.40%	-2.22%	-12.27%	-20.46%	+3.75%

Petronet LNG , a key player in India's liquefied natural gas (LNG) sector, has projected its gross revenue to reach approximately Rs 50.00 billion. This forecast provides insight into the company's financial expectations and business outlook for its LNG operations.

Revenue Projection

The company's revenue projection of Rs 50.00 billion indicates Petronet LNG's confidence in its business model and market position. This figure suggests that the company anticipates steady demand for its LNG services and infrastructure.

Business Outlook

While specific details about the time frame for this revenue projection were not provided, the announcement reflects Petronet LNG's positive outlook on its operations. The LNG market in India has been growing, driven by increasing energy demand and a shift towards cleaner fuel options.

Market Implications

This revenue forecast may be of interest to investors and market analysts as it provides a glimpse into the company's financial expectations. However, it's important to note that projections are subject to various market factors and can be influenced by changes in energy demand, pricing, and regulatory environments.

Conclusion

Petronet LNG's revenue projection of Rs 50.00 billion underscores the company's optimistic view of its future performance. As India continues to expand its LNG infrastructure and usage, companies like Petronet LNG are likely to play a crucial role in the country's energy landscape. Investors and industry observers will be keen to see how this projection aligns with the company's actual financial results in the coming reporting periods.