Petronet LNG will invite initial bids by March to buy 1 million metric tons of propane a year from mid-2028, as the gas importer prepares fuel supplies for a new petrochemical unit at Dahej in western India and keeps open the option of sourcing from the United States after disruptions in West Asia.
Chief Executive Akshay Kumar Singh said the company’s 750,000-tonne-per-year petrochemical plant at Dahej is scheduled to be commissioned in 2027-28. The procurement plan is intended to provide the facility with propane feedstock once operations begin.
Petronet had earlier planned to seek bids from producers in West Asia. Singh said the company was now also open to US supplies because of the disruption in regional supplies triggered by the Iran war. The shift underlines how geopolitical events are influencing sourcing decisions for large industrial projects in India.
The company is also building storage capacity for 3 million tonnes each of ethane and propane. This capacity is scheduled to be completed by 2028. Singh said the additional facilities would allow Petronet to buy ethane and propane for other users in the country, in addition to supporting its own operations.
Petronet LNG is India’s top gas importer, according to the report. Its planned procurement programme will therefore connect the Dahej petrochemical project to international liquefied gas and feedstock markets, rather than relying only on supplies from one producing region.
The Dahej facility forms part of the company’s expansion beyond its core gas-importing business. Its commissioning in 2027-28 will add petrochemical production capacity at an industrial location that already has gas-related infrastructure and storage operations. The company has not disclosed the final suppliers or the commercial terms for the planned propane purchases.
The proposed storage facilities are expected to be built by 2028, the same period in which Petronet plans to begin receiving propane under the new procurement programme. The company’s next stated step is to seek the initial bids by March.
