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Petronet LNG signed a ₹1,200 crore regasification agreement with Performance Chemiserve Ltd, a Deepak Fertilisers subsidiary.
Regasification is the process of turning liquefied natural gas (LNG) back into gas so it can be used for power, heating, or industrial use.
Context: This follows an earlier LNG supply tie-up between Deepak Fertilisers and Norway’s Equinor. Now, Petronet enters as the local regasification partner in the chain.
The deets: the 5.5-year deal covers 25.6 TBTUs of LNG per year, to be regasified at Petronet’s Dahej terminal in Gujarat. Supply begins between May–July 2026 and runs till December 2031.
The regasified gas will be used in Deepak Fertilisers’ Taloja manufacturing unit.
25.6 TBTUs (Trillion British Thermal Units) of LNG per year is roughly enough gas to power a medium-sized industrial plant or meet the yearly cooking gas needs of about 5–6 lakh households.
Why it matters: the deal could bring Petronet an extra 20% revenue over its lifetime and boost long-term business visibility.
Moreover, Petronet handled nearly 18 MMTPA of LNG in FY25 across its Dahej and Kochi terminals. Dahej is among the busiest regas terminals globally and this deal keeps it that way.
Big theme: regasification is a key part of India’s energy game. It allows LNG (which is easier to transport) to be converted back into gas and sent through pipelines to industries, power plants, or households.
India currently has around 7 LNG terminals & more are planned as the country aims to raise the share of natural gas in its energy mix from 6% to 15% by 2030.
Compared to coal or oil, natural gas is cleaner with lower carbon emissions and almost no particulate pollution. Regasification itself doesn’t cause major pollution, and it helps displace dirtier fuels in industries.
