Petronet LNG to seek bids for 1 million tons propane from mid-2028

What happened

Petronet LNG will seek initial bids by March to buy 1 million metric tons per year of propane from mid-2028 for its petrochemical unit in western India, Chief Executive Akshay Kumar Singh said. Its 750,000-ton-per-year plant at Dahej is due in 2027-28.

Confirmed

Global impact / market context

This locks in long-term propane supply for Petronet's new petrochemical plant, which turns propane into chemicals rather than fuel. Securing feedstock before the plant starts reduces the risk of running below capacity, supporting future revenue from chemicals and lowering dependence on imported gas alone.

Analyst inference

Supply disruption from the Iran war pushed Petronet away from West Asian producers toward possible United States suppliers, widening its sourcing options. It is also building storage for 3 million tons each of ethane and propane by 2028, letting it buy for other Indian users too.

Analyst inference

What to watch

1. Whether Petronet receives initial propane bids by March and signs supply deals in time for the plant's 2027-28 commissioning, since a delay could leave the new petrochemical unit without feedstock. Confirmed
2. Watch whether Petronet shifts propane purchases toward United States producers, a change it says it is open to because Iran-war disruption affects West Asian supplies. Proposed
3. Track progress on storage built by 2028 for 3 million tons each of ethane and propane, which supports buying for other Indian users and could lift Petronet's revenue beyond its own plant. Analyst inference

Evidence

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