Petronet LNG has signed a ₹12,000 crore loan agreement with a consortium led by the State Bank of India and Bank of Baroda, with each bank contributing ₹6,000 crore. According to the company’s filing dated December 10, 2025, the facility is a secured rupee term loan earmarked for capital expansion at its Dahej terminal.
Use of Proceeds
The funds will be deployed toward Petronet’s upcoming propane dehydrogenation (PDH) and polypropylene (PP) project in Gujarat. The project includes a 750 KTPA PDH unit, a 500 KTPA PP unit, and associated propane and ethane handling infrastructure—key components of the company’s broader development plan at Dahej.
Security Structure
The term loan is backed by a first pari-passu charge over the project’s movable and immovable assets (excluding land), covering equipment, machinery, buildings and other project-linked items.
Additionally, a second pari-passu charge has been created on Petronet LNG’s existing movable fixed assets. This secondary charge will be released once the PDH-PP project achieves commissioning.
Security interests will be shared among lenders and bondholders as per the loan terms.
Summary
Petronet LNG has secured a ₹12,000 crore loan from SBI and Bank of Baroda to fund its PDH and PP project at Dahej, which includes major capacity additions. The loan is fully secured through a first charge on project assets and a second charge on existing movable assets, which will be lifted after commissioning.
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