India's Petronet LNG Plans to Tender for 1 Million Tons per Year of Propane Procurement

en.Wedoany.com Reported - On October 28, Indian natural gas importer Petronet LNG said it plans to launch a long-term propane supply tender before March 2027, with an annual procurement scale of about 1 million tons, and deliveries are expected to begin in mid-2028. The procured feedstock will supply the petrochemical complex under construction at Dahej in Gujarat. The project is equipped with a 750,000 tons/year propane dehydrogenation unit and is scheduled to commence operations in 2027–2028. The company is also considering including U.S. suppliers in the tender scope.

The Dahej petrochemical complex has a planned investment of INR 206.85 billion to build a 750,000 tons/year propane dehydrogenation (PDH) unit and a 500,000 tons/year polypropylene (PP) unit, along with supporting ethane and propane storage and loading/unloading facilities. According to Petronet LNG's fiscal year 2025–2026 annual report, as of the end of July 2026, overall engineering progress on the project reached 38.6%, and approximately INR 133.46 billion in funding commitments had been made for related engineering and project activities.

The supporting third jetty at Dahej is expected to involve an investment of INR 20.13 billion and is designed to receive liquefied natural gas, ethane, and propane. It can accommodate LNG carriers of 125,000 to 266,000 cubic meters and ethane and propane carriers with tank capacities exceeding 60,000 cubic meters. As of the end of July 2026, jetty construction progress was about 70%, with completion targeted for fiscal year 2027–2028.

Akshay Kumar Singh, Managing Director of Petronet LNG, said the company originally planned to procure propane mainly from Middle Eastern producers, but due to the impact of conflict on regional supply, it is now considering U.S. sources. The company also plans to build ethane and propane storage facilities by 2028 and use the additional storage capacity to supply feedstock to other industrial users in India.