Petronet LNG to form ₹1,200 crore CBG joint venture with Gruner Renewable

Agreement
Gas

Blacklitt Research22 October 20262 min read

Petronet LNG (NSE: PETRONET) has signed a binding term sheet with Gruner Renewable Energy Private Limited to form a joint venture for setting up compressed bio-gas (CBG) plants across India, with an estimated capital outlay of ₹1,200 crore, it said in a filing on 22 Oct 2026. The joint venture would be a 50:50 private limited company.

Key highlights

Estimated capital outlay: ₹1,200 crore
Planned CBG plants: 10, each of 18 MT per day
Equity split: 50:50 with Gruner Renewable Energy Private Limited
Term sheet signed on 22 Oct 2026; not a related party transaction

The joint venture in numbers

Item	Detail
Parties	Petronet LNG Limited and Gruner Renewable Energy Private Limited
Structure	Private Limited company, 50:50 equity participation
Number of CBG plants	10 plants, each of 18 MT per day capacity
Estimated capital outlay	₹1,200 crore
Board representation	In proportion to each party's equity shareholding
Related party	No, per the company

What the joint venture would do

Petronet LNG said it signed a binding term sheet on 22 Oct 2026 with Gruner Renewable Energy Private Limited to form a joint venture for setting up compressed bio-gas (CBG) plants in various states across India. Compressed bio-gas is a fuel produced from organic feedstock.

The joint venture company is to carry on CBG production, feedstock procurement, compression, distribution, storage, transport, supply and sale, and to establish 10 CBG plants, each of 18 MT per day capacity, across the country.

Ownership and governance

The filing says the joint venture will be a Private Limited company with 50:50 equity participation between Petronet LNG and Gruner Renewable Energy. Board seats will be allotted to each party in proportion to its equity shareholding.

Petronet LNG holds no shareholding in Gruner Renewable Energy, and the company states that Gruner is not related to its promoter, promoter group or group companies. The company also states that the transaction does not fall within related party transactions.

What the joint venture means for Petronet LNG's shareholders

The term sheet sets out a 50:50 joint venture with an estimated capital outlay of ₹1,200 crore for 10 CBG plants. The filing does not say how much Petronet LNG will invest or its share of the outlay, the consideration for the equity stake, the conditions before a definitive agreement is signed, the timeline for the plants, the states where they will be located, the approvals needed, or the expected effect on the company's results.

The filing does not give a date for incorporation of the joint venture company, so the next step is not dated in the filing.

Reference: Original filing (PDF)

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