Petronet LNG Secures Rs 12,000 Crore Loan for Petrochem Project

Wedoany.com Report-Dec.14, Petronet LNG Ltd has concluded a ₹12,000-crore rupee term loan facility with a banking consortium led by State Bank of India and Bank of Baroda. The agreement was announced on Wednesday through an official company statement.

The financing package, arranged following a competitive bidding process advised by SBI Capital Markets Ltd, comprises equal contributions of ₹6,000 crore from each bank. The funds will primarily support the development of Petronet's integrated petrochemical complex while also covering additional capital expenditure requirements across ongoing and planned initiatives.

Petronet LNG, India's largest importer of liquefied natural gas, operates as a joint venture between four public-sector energy companies: GAIL (India) Limited, Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation Limited, and Bharat Petroleum Corporation Limited, with each partner holding a 12.5% equity stake.

The company currently manages two LNG regasification terminals – a 17.5 million metric tonnes per annum facility at Dahej, Gujarat, and a 5 million metric tonnes per annum terminal at Kochi, Kerala – providing a combined nominal capacity of 22.5 million metric tonnes annually.

The new borrowing strengthens Petronet's financial position as it advances downstream diversification into higher-value petrochemical production, complementing its core LNG import and regasification business. Loan disbursement is expected to occur in tranches aligned with project milestones, ensuring efficient capital deployment across the sanctioned initiatives.