Petronet LNG has signed a binding term sheet with Gruner Renewable Energy for a Petronet biogas venture worth about INR12bn ($126mn). The 50:50 company will build 10 compressed biogas (CBG) plants, each able to make 18 tonnes a day.
Why the Petronet biogas move matters
In total, the plants will produce 180 tonnes a day, or ~63,000 tonnes a year at 350 operating days. That is small next to India’s LNG imports of about 25.5mn tonnes a year. Even so, it gives India’s largest LNG importer its first large domestic gas business.
The timing is telling. Throughput at the Dahej terminal fell to 192 trillion Btu in April to June, from 207 trillion a year earlier, as Hormuz disruption hit Qatari supply. Meanwhile, spot LNG prices jumped.
Policy support
City gas companies must blend CBG into transport CNG and piped gas. In particular, the obligation rises from 3% in FY27 to 5% from FY29. However, the company has not yet named plant sites or dates.
Petronet is also spending INR206.85bn ($2.18bn) on a Dahej petrochemicals complex and INR63.55bn ($669mn) on the Gopalpur LNG terminal. As a result, its capacity will rise ~18% to 32.5 mtpa. For the gas price backdrop, read our report on European gas at a four-year high.
