Petronet LNG has secured a loan from a consortium of the State Bank of India and Bank of Baroda to fund its upcoming 750,000-tpy propane dehydrogenation (PDH) project in Dahej, Gujarat. Once operational, the plant will produce 500,000 tpy of polypropylene, strengthening India’s self-sufficiency in petrochemicals and supporting the government’s vision of making the country a petrochemical hub.
The project incorporates several innovative features:
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Cold energy integration at the LNG terminal, making it India’s first petrochemical plant to utilize LNG cold energy for operational efficiency.
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A reduction in Capex by ₹400 crore and annual operating cost savings of ₹120 crore, highlighting the plant’s cost-effective design.
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A strategic location in the Dahej Industrial Zone, positioning the facility to serve the growing demand for propylene, hydrogen, and polypropylene in Western India.
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Contribution to Atmanirbhar Bharat by addressing 10% of India’s polypropylene supply-demand gap, promoting domestic production and industrial innovation.
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Socio-economic impact, creating 50,000 jobs during construction and sustaining 10,000 jobs once operational.
The PDH complex is expected to be a technical marvel, combining efficiency, sustainability, and innovation to meet India’s industrial growth targets. By reducing reliance on imported polypropylene and supporting domestic supply chains, the project will play a pivotal role in advancing India’s petrochemical sector.
Officials noted that the plant will not only strengthen the country’s energy and chemical resilience but also empower local communities through job creation and skill development, contributing to long-term economic growth in Gujarat and beyond.