Petronet LNG Ltd has approved the formation of a 50:50 joint venture with Gruner Renewable Energy Pvt Ltd to develop 10 compressed biogas (CBG) plants across India, with a combined estimated capital outlay of ₹1,200 crore.
The decision was taken at Petronet LNG’s board meeting on September 17, 2026, according to the company’s exchange filing. The proposed venture will be incorporated as a private limited company, with further details expected to be disclosed after its incorporation.
Ten plants planned at 18 tonnes per day each
Under the proposed joint venture, the partners plan to establish 10 CBG facilities, each with a stated production capacity of 18 tonnes per day.
This would give the proposed portfolio a combined capacity of 180 tonnes per day if all 10 plants are developed at the capacities specified in the announcement.
The source does not specify the individual plant locations, feedstocks, construction schedules, technology providers or expected commissioning dates. It also does not provide a project-by-project breakdown of the estimated ₹1,200 crore capital expenditure.
CBG is produced by processing biogas into a higher-quality renewable gas that can be compressed and used as a fuel. The proposed investment therefore represents an expansion by Petronet LNG into infrastructure connected with India’s renewable-gas market.
Petronet LNG expands beyond its core LNG business
The proposed partnership brings together Petronet LNG, a major player in India’s liquefied natural gas infrastructure sector, and Gruner Renewable Energy for a dedicated CBG development platform.
The 50:50 ownership structure means the two companies are expected to share ownership of the proposed venture equally. However, the source does not specify the respective responsibilities of the partners for project development, technology, feedstock procurement, plant operations or CBG marketing.
The joint venture’s planned 10-plant portfolio also provides a framework for developing multiple projects rather than a single CBG facility. Details on how the plants will be financed and whether the stated ₹1,200 crore represents the complete investment requirement were not provided in the source.
CBG investment adds renewable gas capacity
The planned 180 tonnes per day of aggregate capacity is the key operational figure disclosed for the proposed portfolio. At 18 tonnes per day per facility, each plant would account for one-tenth of the planned project capacity.
The announcement does not identify the feedstocks that would be used by the plants. That information will be important for assessing the eventual project configuration, as CBG facilities can be developed around different organic waste and biomass resources.
No production start date or construction timeline has been announced. Petronet LNG said further information would be provided to stock exchanges once the proposed joint venture company has been incorporated.
Petronet LNG’s latest financial performance
The CBG announcement follows Petronet LNG’s June-quarter financial results. For the first quarter of FY27, the company reported a net profit of ₹1,113 crore, down 15.4% sequentially from ₹1,338 crore in the March quarter.
Revenue declined 41.2% quarter on quarter to ₹5,554.1 crore from ₹9,442.1 crore, while EBITDA fell 17.7% to ₹1,532 crore from ₹1,862 crore.
Despite the lower EBITDA, the company’s reported EBITDA margin increased to 27.6% from 19.7% in the preceding quarter, a rise of 7.9 percentage points.
The financial figures provide context for the timing of the proposed CBG investment, but the source does not link the joint venture decision directly to the company’s quarterly financial performance.
Bioenergy Business Analysis
Petronet LNG’s proposed 50:50 CBG joint venture is notable because it places a large LNG infrastructure company alongside a renewable-energy developer in a multi-project compressed biogas platform. The planned 10 facilities and ₹1,200 crore estimated capital outlay indicate an approach centred on building a portfolio of CBG assets rather than pursuing a single installation.
For the proposed projects, execution factors will be important. The announcement does not yet identify locations, feedstocks, technology arrangements or construction timelines, leaving several key project-development details unresolved. The eventual disclosure of these elements will provide a clearer picture of how the planned capacity will be delivered and integrated into the CBG market.
The development also illustrates the growing overlap between conventional gas infrastructure businesses and renewable-gas projects. However, the current announcement represents an approved joint-venture proposal rather than evidence that the 10 plants are already under construction or operational.
Petronet LNG is expected to provide further information to the stock exchanges following incorporation of the proposed joint venture.
