Petronet LNG Ltd has arranged a INR 120 billion rupee-denominated term loan from State Bank of India and Bank of Baroda to fund its upcoming petrochemicals project and related capital expenditure. The financing strengthens balance sheet support for downstream diversification.
Petronet LNG Ltd has finalized a INR 120 billion term loan facility from a banking consortium led by State Bank of India and Bank of Baroda, according to a company statement. Each lender has committed INR 60 billion under the arrangement, which will primarily finance the company’s planned petrochemicals development alongside other capital expenditure needs.
The funding follows a competitive bidding process, with SBI Capital Markets Ltd acting as financial advisor to Petronet. The long-tenor rupee facility is expected to provide financial flexibility as the company broadens its asset base beyond liquefied natural gas import and regasification operations.
Petronet LNG is India’s largest LNG importer and operates key regasification terminals supplying natural gas to power, fertilizer and industrial customers. The company is a joint venture backed by GAIL, ONGC, Indian Oil Corporation and Bharat Petroleum Corporation Limited, each holding a 12.5% equity stake.
The financing underscores continued domestic bank appetite for large-scale energy infrastructure projects. For investors and sector participants, Petronet’s expansion into petrochemicals signals a strategic move toward higher-value downstream integration amid evolving gas demand dynamics in India’s energy and manufacturing sectors.
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