Petronet LNG Signs ₹1,200 Crore JV with Gruner Renewable Energy for 10 CBG Plants – Indian PSU

Petronet LNG Limited has signed a binding term sheet to establish a 50:50 joint venture with Gruner Renewable Energy Private Limited for setting up 10 compressed biogas plants across India, with a total estimated investment of ₹1,200 crore.

Petronet LNG Limited, a leading public sector enterprise in India’s natural gas sector, is expanding its presence in renewable energy through a proposed joint venture with Gruner Renewable Energy Private Limited to develop compressed biogas (CBG) infrastructure across the country.

The binding term sheet was signed on October 22, 2026. Under the agreement, the joint venture will establish 10 CBG plants, each with a production capacity of 18 metric tonnes per day. The facilities will have a combined planned capacity of 180 tonnes per day.

The estimated capital outlay for the project is ₹1,200 crore, with both partners holding equal equity participation in the proposed joint venture company.

10 Plants Planned Across India

The proposed joint venture will be incorporated as a private limited company. Petronet LNG and Gruner Renewable Energy will each hold a 50% stake, with representation on the board of directors proportionate to their respective shareholdings.

The venture will cover the entire CBG value chain, including feedstock procurement, production, processing, compression, storage, transportation, distribution, supply, trading and sale of compressed biogas and associated by-products.

It will also undertake the development, construction, commissioning, operation and maintenance of CBG plants. The agreement allows the joint venture to explore other business opportunities in the broader bioenergy sector.

The company has not yet disclosed the locations of the proposed plants, the project implementation schedule or the financing structure for the ₹1,200 crore investment.

Petronet LNG Expands Beyond Core LNG Business

The proposed partnership marks another step in Petronet LNG’s diversification beyond its core liquefied natural gas import and regasification operations.

Petronet LNG operates LNG terminals at Dahej in Gujarat and Kochi in Kerala. Its entry into compressed biogas provides an opportunity to build a presence in India’s expanding alternative-fuels market while broadening its energy portfolio.

CBG is produced by processing biodegradable materials, including agricultural residues and organic waste. It can be used as a fuel for transport and other applications, depending on the relevant technical and regulatory requirements.

The development of CBG infrastructure can also support organic-waste utilisation and create opportunities for agricultural and rural supply chains.

Part of India’s Clean-Energy Transition

India’s push towards alternative fuels and domestic energy production has created opportunities for investment in bioenergy. Compressed biogas is among the options being pursued to diversify the country’s fuel mix and improve the productive use of organic waste.

The joint venture’s next milestones will include finalising project locations, establishing the company and progressing towards the development of the 10 proposed facilities.