Petronet LNG plans to invite bids for 1 million tons of annual propane supply starting March

Petronet LNG, India's leading gas importer, plans to seek initial bids by March to procure 1 million metric tons per year of propane. The supply contract is scheduled to begin from mid-2028 to support the company's petrochemical facility located in western India.

According to Chief Executive Akshay Kumar Singh, the 750,000-ton-per-year petrochemical plant at Dahej is scheduled for commissioning in 2027-28. Singh shared the details during an industry event.

Initially, Petronet intended to source bids primarily from West Asian producers. However, ongoing supply disruptions in the region stemming from the Iran conflict have prompted the company to remain open to sourcing supplies from the United States as well.

In addition to procurement plans, Singh noted that Petronet LNG is currently constructing storage infrastructure capable of holding 3 million tons each of ethane and propane. This storage capacity is scheduled for completion by 2028.

Highlighting the broader scope of the infrastructure project, Singh stated that the company is building the additional storage capacity to enable the purchase of ethane and propane for other users throughout the country.

"Petronet LNG's strategic move to diversify its propane sourcing beyond West Asia highlights the critical importance of supply chain resilience in large-scale industrial projects. By expanding infrastructure to include massive ethane and propane storage capacities by 2028, the company is not only securing feedstock for its Dahej petrochemical plant but also positioning itself to serve broader domestic industrial demand. For businesses operating in capital-intensive sectors, proactive risk management and supply diversification are essential to navigate geopolitical uncertainties effectively." — Dr. Shishir Gupta, Founder & CEO, StartupLanes