Petronet LNG (Petronet) and Performance Chemiserve, a subsidiary within Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL), have announced a 5.5-year regasification agreement.

The regasification agreement was signed on 10 July 2025 and is set to begin between May and July 2026 and conclude on 31 December 2031.

This deal is expected to generate revenue of Rs12bn ($140m) for Petronet, with the potential for an additional 20% revenue increase over the contract's duration.

The agreement involves the regasification of liquefied natural gas (LNG) to be imported by the Deepak Fertilisers group for use at its manufacturing units at Taloja.

Under the agreement, Petronet will handle the reception, storage and regasification of approximately 25.6 trillion British thermal units of LNG a year after an initial ramp-up period in 2026, at its Dahej terminal in Gujarat.

This agreement follows a previous LNG sale and purchase agreement signed by DFPCL with Norway's energy major Equinor.

Petronet processed around 18 million tonnes per annum (mtpa) of LNG in FY24-FY25 through its two terminals at Dahej and Kochi, Kerala, with the former standing as the flagship and one of the busiest regasification terminals worldwide.

Additionally, Petronet is establishing new units at the Dahej terminal and building a third jetty capable of handling LNG, ethane, and propane.

In March, Petronet commissioned a natural gas pipeline connecting the Chhara LNG terminal to the gas grid.

The Rs6.5bn ($75.5m) pipeline has a capacity of 18 million standard cubic metres per day and connects the newly established 5mtpa LNG import terminal at Chhara in the Gir-Somnath district.