Petronet LNG inks ₹1,200-crore regasification deal with Deepak Fertilisers

Petronet LNG Ltd has formalised a substantial Rs 1,200 crore regasification agreement with Performance Chemiserve Ltd, a wholly owned subsidiary of Deepak Fertilisers and Petrochemicals Corporation Ltd. This 5.5-year deal, signed on July 10, will have Petronet providing regasification services for about 25.6 TBTUs of liquefied natural gas (LNG) annually at its Dahej terminal in Gujarat.

The supply is scheduled to begin between May and July 2026, continuing until December 31, 2031. According to Petronet, the deal strengthens its long-term business visibility.

In fiscal year 2025, Petronet handled around 18 million metric tonnes per annum of LNG across its terminals at Dahej and Kochi, with Dahej being recognised as one of the busiest regas terminals globally. This agreement enhances Petronet's position in the domestic market, following an earlier LNG supply arrangement between Deepak Fertilisers and Norway-based Equinor.

The contract also provides an additional 20% revenue upside over the duration, with regasified LNG aimed primarily for Deepak Fertilisers’ manufacturing units at Taloja. This strategic move not only solidifies Petronet's role in the value chain but also ensures a steady supply of LNG, thereby supporting the operational requirements of Deepak Fertilisers.

Meanwhile, the shares of Petronet LNG Ltd ended flat at ₹305.30, falling 0.10% on NSE. This development brings Petronet into a significant role within the value chain as a domestic regasification partner, bolstering its business prospects. By expanding its strategic partnerships, Petronet is poised to reinforce its market presence.

The agreement not only supports their operational growth but also aligns with their broader financial strategy, positioning the company favourably for future endeavours. The deal is expected to contribute significantly to Petronet's revenue stream, further enhancing its market leadership in the LNG sector.