New Delhi: Petronet LNG Limited (PLL), India’s leading LNG infrastructure company, has signed a significant 5.5-year regasification agreement with Performance Chemiserve Limited (PCL), a company under the Deepak Fertilizers and Petrochemicals Corporation Limited (DFPCL) Group. The deal is set to begin between May and July 2026 and will continue until December 31, 2031.
As part of the agreement, liquefied natural gas (LNG) procured by the DFPCL Group will be regasified by PLL at its Dahej terminal in Gujarat. PCL, which is fully owned by Deepak Mining Solutions Limited (DMSL)—a wholly owned subsidiary of DFPCL—will handle the downstream operations.
Under the contract, PLL will receive, store, and regasify approximately 25.6 trillion British thermal units (TBTU) of LNG annually. Operations will commence with an initial ramp-up phase in 2026. The regasified natural gas will be primarily supplied to DFPCL Group’s manufacturing units located in Taloja, Maharashtra.
The deal is expected to generate revenues of around ₹1,200 crore for Petronet LNG over the contract duration. Additionally, there is scope for up to 20% more revenue depending on operational and market dynamics during the agreement period.
The agreement was formally signed on July 10, 2025, at PLL’s corporate headquarters in New Delhi. The event was attended by Mr. A.K. Singh, Managing Director and CEO of PLL, and Mr. Shailesh C. Mehta, Chairman of both DFPCL and PCL.
Speaking on the occasion, Mr. Shailesh Mehta expressed that this partnership is a key milestone in the group’s long-term strategy to establish a robust and efficient supply chain from natural gas to high-value downstream products. He stated, “This agreement will enhance our operational efficiency and ensure consistent, cost-effective access to natural gas, particularly benefiting our ammonia production and related verticals. Our integrated supply approach lays a strong foundation for sustainable growth through customized and specialized solutions. It also bolsters our efforts in contributing to India’s industrial and agricultural development.”
Mr. A.K. Singh of PLL emphasized the strategic importance of the collaboration. “We are pleased to welcome DFPCL Group as a valuable addition to our partner ecosystem. This agreement supports optimal utilization of our expanded regasification infrastructure and strengthens India’s overall energy security. It reinforces PLL’s commitment to serving as a leading energy and infrastructure entity aligned with the government’s vision of increasing natural gas usage in the national energy mix.”
Petronet LNG, which is co-promoted by leading Indian oil and gas PSUs, is one of the largest importers and handlers of LNG in South Asia. During the fiscal year 2024–25, the company handled nearly 18 million metric tonnes per annum (MMTPA) of LNG across its Dahej and Kochi terminals. The Dahej terminal remains the flagship facility, ranking among the busiest regasification hubs globally.
The latest regasification arrangement further consolidates DFPCL Group’s presence across the natural gas value chain. The group has previously signed an LNG supply agreement with Norway-based energy major Equinor. With the current deal involving Petronet LNG, DFPCL strengthens its integrated approach—linking natural gas procurement to production of ammonia, nitric acid, and a diversified portfolio of fertilizers, industrial chemicals, and mining products.
PCL, which plays a critical role in leveraging natural gas for fertilizer and chemical production, is at the forefront of the group’s expansion efforts. This partnership with PLL is expected to provide the DFPCL Group with a competitive edge by securing a stable and reliable natural gas supply at predictable costs, a factor crucial to maintaining profitability in energy-intensive industries.
The collaboration between PLL and PCL symbolizes a forward-looking energy partnership focused on efficiency, security, and value creation. It marks a strategic alignment that supports India’s energy diversification and industrial growth objectives, while also strengthening long-term supply chains for critical inputs like ammonia and its derivatives.
By fostering such alliances, both companies aim to contribute meaningfully to India’s energy transition, economic progress, and the government’s broader vision of a cleaner, more gas-reliant future.
