Petronet LNG Secures ₹12,000 Crore Loan for Dahej PDH PP Project

11 Dec 2025 , 10:29 AM

Petronet LNG Limited announced that it has signed a secured Rupee Term Loan facility of ₹12,000 crore with a consortium led by State Bank of India and Bank of Baroda. The borrowing has been divided equally between the two lenders and will be used to finance the company’s PDH and PP project at Dahej, Gujarat.

The project includes a 750 KTPA Propane Dehydrogenation unit, a 500 KTPA Polypropylene plant, and additional facilities for handling propane and ethane along with other capital expenditure.

As part of the arrangement, the loan is backed by a first pari passu charge on all movable and immovable assets linked to the PDH PP project. A second charge has also been placed on the company’s existing movable fixed assets, which will be released once the project is commissioned. The security offered under the loan will be shared pari passu between the consortium lenders and existing bondholders.

Earlier in the month, Petronet LNG signed a fifteen year binding term sheet with ONGC for ethane unloading and handling services. The agreement is expected to generate about ₹5,000 crore in revenue over the duration of the contract.

In its second quarter results, the company reported a net profit of ₹806 crore, which was 5.3 percent lower on a quarter on quarter basis, while revenue stood at ₹11,009 crore. EBITDA for the quarter came in at ₹1,117 crore and the company registered a stronger margin of 10.15 percent.

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