Petronet LNG Signs Binding Term Sheet With Gruner for Rs 1,200 Crore Joint Venture to Build 10 Biogas Plants

Petronet LNG has signed a binding term sheet, dated October 22, to form a 50:50 joint venture with Gruner Renewable Energy that will build 10 compressed biogas plants of 18 tonnes per day each across India for an estimated Rs 1,200 crore (yaani Rs 1,200 crore), its exchange filing said. Plant locations, timelines and financing are yet to be disclosed.

Awaaz Punjab Investigations Desk24 October 20263 min readRead in all 3 languages

New Delhi — Petronet LNG Limited has signed a binding term sheet with Gruner Renewable Energy Private Limited to form a 50:50 joint venture that will set up 10 compressed biogas (CBG) plants across India at an estimated capital outlay of Rs 1,200 crore (yaani Rs 1,200 crore), according to its regulatory filing.

Source: BioEnergy Times (regulatory filing)

The term sheet was signed on October 22, 2026. Each of the 10 plants will have a capacity of 18 metric tonnes per day, giving the venture a combined planned capacity of 180 tonnes per day, Indian PSU reported from the filing.

Source: Indian PSU

Rs 1,200 croreEstimated capital outlay for 10 CBG plants

10 plantsCompressed biogas plants planned across India

18 MT per dayCapacity of each plant; 180 MT/day combined

50:50Equity split between Petronet LNG and Gruner

The joint venture will be incorporated as a private limited company, with each partner holding 50 per cent equity and nominating directors to the board in proportion to its shareholding. It will cover the full CBG value chain — feedstock procurement, production, processing, compression, storage, transportation, distribution, supply, trading and sale of compressed biogas and associated by-products — and may also take up other bioenergy opportunities, the filing said.

Source: BioEnergy Times (regulatory filing)

Petronet stated that it holds no shares in Gruner Renewable Energy and that Gruner is not related to its promoter, promoter group or group companies, so the arrangement does not count as a related-party transaction, BioEnergy Times reported from the disclosure.

Source: BioEnergy Times (regulatory filing)

The company has not yet disclosed the locations of the proposed plants, the implementation schedule or the financing structure for the Rs 1,200 crore (yaani Rs 1,200 crore) investment, Indian PSU noted. The venture marks a diversification for Petronet, India's largest LNG importer, into domestic biogas production.

Source: Indian PSU

Sources: Indian PSU, October 2026; BioEnergy Times, October 2026; and ScoutQuest exchange-filing summary, October 22, 2026.

Source: Indian PSU