Petronet LNG Seeks More Land at Dahej for Fabrication Yard; ₹20,685-Crore Investment Underway

Petronet LNG Ltd, India’s largest gas importer, has sought additional land from the Gujarat government to set up a fabrication yard as part of its upcoming petrochemical complex at Dahej. The yard is expected to play a crucial role in supporting the infrastructure required for the project.

The company is investing ₹20,685 crore in the complex, which will include a Petrochemical (PDH-PP) plant integrated with an ethane and propane import facility. Construction work for the main plant has already commenced. The fabrication yard will serve as a site for the creation and assembly of large industrial components necessary for the setup, ensuring smooth execution of this mega project.

According to a senior state government official, Petronet LNG’s proposed plant will use imported ethane and propane to produce vital petrochemical derivatives. The Propane Dehydrogenation (PDH) unit will convert propane into propylene, which will then be polymerized in a Polypropylene (PP) unit. The project aims to reduce India’s dependency on imports by enabling domestic production of key petrochemicals used in everyday products such as plastics, detergents, and cosmetics.

The initiative marks Petronet LNG’s foray into petrochemical manufacturing as it seeks to diversify operations beyond gas imports and regasification. By venturing into downstream sectors, the company aims to tap into the growing demand for petrochemical products within the country and enhance its value chain integration.

In addition to the ₹20,685 crore investment for the main facility, a further ₹5,000 crore investment is expected to be made near the complex for supplementary industrial development, further boosting the region’s economy. The entire project is projected to create nearly 50,000 jobs—direct and indirect—during the construction phase, and around 10,000 jobs during the operational phase.

The request for additional land is currently under review by the state government. If approved, it would mark another major industrial milestone for Dahej, which has emerged as a hub for energy and petrochemical projects in Gujarat.

Petronet LNG’s move is in line with India’s broader strategy to become self-reliant in critical industrial sectors while generating employment and boosting economic development through high-value infrastructure.

AM.