Government Likely to Approve Expansion of Dahej LNG Terminal

Petronet LNG Limited is set to invest ₹2,100 crore to expand its Dahej LNG terminal in Gujarat, reinforcing its position as a key pillar of India’s energy infrastructure. The Dahej facility, located in the Gulf of Khambhat, is already India’s largest LNG regasification terminal and the first of its kind in Southeast Asia. As of March 2026, its capacity has been scaled up to 22.5 million metric tonnes per annum (MMTPA), enabling it to handle large LNG carriers, including Q-Max vessels.

The proposed expansion is expected to receive government approval soon, signaling strong policy support for boosting natural gas usage in India’s energy mix. This move aligns with the country’s long-term strategy to increase the share of cleaner fuels and reduce dependence on conventional hydrocarbons.

The Dahej terminal plays a critical role in importing liquefied natural gas and distributing it across industries, power plants, and city gas networks. The planned investment will enhance operational efficiency, improve capacity utilization, and strengthen India’s energy security while supporting growing domestic demand for natural gas.

 

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